Bill Text: NY S01707 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Provides a New York state residential property tax relief act for public education aid apportionment for certain school years; and provides for the repeal of such provisions upon the expiration thereof.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2020-02-19 - PRINT NUMBER 1707A [S01707 Detail]
Download: New_York-2019-S01707-Introduced.html
Bill Title: Provides a New York state residential property tax relief act for public education aid apportionment for certain school years; and provides for the repeal of such provisions upon the expiration thereof.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2020-02-19 - PRINT NUMBER 1707A [S01707 Detail]
Download: New_York-2019-S01707-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1707 2019-2020 Regular Sessions IN SENATE January 15, 2019 ___________ Introduced by Sen. BROOKS -- read twice and ordered printed, and when printed to be committed to the Committee on Education AN ACT to amend the education law, in relation to providing a New York state residential property tax relief act for public education aid apportionment for certain school years; and providing for the repeal of such provisions upon the expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "New York 2 state residential real property tax relief act for public education." 3 § 2. Legislative findings. The legislature finds that the current 4 primary and secondary education funding system, which is based largely 5 upon real property taxation, is antiquated and creates serious dispari- 6 ties in educational opportunity and inequities with regard to distrib- 7 ution of the system's financial burden. The quality of education that 8 children receive varies widely by geographic region, as does the oppor- 9 tunity for children to participate in extracurricular activities. In 10 addition, taxpayers throughout the state receive real property tax bills 11 from their local school districts based on the value of their homes, 12 which is subject to multiple factors beyond their control, rather than 13 their financial ability to pay, creating serious regional distortions in 14 the relative cost of living. The legislature further finds that our 15 children should not be penalized based upon the geographic location of 16 their home, nor should financial support for the educational system fall 17 more heavily on those who are less able to bear the burden. The legisla- 18 ture therefore must take immediate action to provide relief to those 19 areas most impacted by these disparities through the residential proper- 20 ty tax relief aid determined through a residential property tax relief 21 aid formula. The legislature further orders an education funding study 22 to examine long-term funding alternatives for the state primary and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06906-01-9S. 1707 2 1 secondary educational system that allows all children throughout the 2 state to receive the same educational opportunities. 3 § 3. Section 3602 of the education law is amended by adding a new 4 subdivision 42 to read as follows: 5 42. New York state residential property tax relief act for public 6 education. a. Eligibility. (1) Each school district shall be eligible to 7 receive a New York state residential property tax relief act for public 8 education aid apportionment in the two thousand twenty--two thousand 9 twenty-one school year, which shall equal the greater of: (i) the sum of 10 the tax equalization aid apportionment, the tax limitation ceiling aid 11 apportionment, and the wealth adjusted tax rate aid apportionment; or 12 (ii) the residential property tax levy reduction apportionment. 13 (2) Each school district shall be eligible to receive a New York state 14 residential property tax relief act for public education aid apportion- 15 ment in the two thousand twenty-one--two thousand twenty-two school year 16 in the same amount as in the base year. 17 (3) Each school district shall be eligible to receive a New York state 18 residential property tax relief act for public education aid apportion- 19 ment in the two thousand twenty-two--two thousand twenty-three school 20 year in an amount equal to the New York state residential property tax 21 relief act for public education aid apportionment in the two thousand 22 twenty-one--two thousand twenty-two school year multiplied by one and 23 seven hundred sixty-nine ten-thousandths (1.0769). 24 b. Purpose. Funds allocated under this subdivision shall be solely 25 used for the purpose of reducing the residential tax levy defined in 26 subparagraph one of paragraph a of subdivision sixteen of this section. 27 c. Tax equalization aid apportionment. (1) School districts other than 28 districts within a city with a population of one hundred twenty-five 29 thousand or more shall be eligible for a tax equalization aid apportion- 30 ment if: (i) the combined wealth ratio computed pursuant to paragraph c 31 of subdivision three of this section is less than one; and (ii) the 32 expense per pupil defined pursuant to paragraph f of subdivision one of 33 this section is greater than the statewide average expense per pupil. 34 For the two thousand twenty--two thousand twenty-one school year, for 35 the purpose of computing aid pursuant to this subdivision, the statewide 36 average expense per pupil shall be fourteen thousand seven hundred fifty 37 dollars. 38 (2) The tax equalization formula factor shall be equal to the positive 39 difference of the approved operating expense defined pursuant to para- 40 graph t of subdivision one of this section minus the quotient arrived at 41 when dividing the total real property tax levy by total aidable pupil 42 units defined pursuant to paragraph e of subdivision one of this 43 section. 44 (3) For eligible school districts, the tax equalization formula aid 45 apportionment shall be equal to the product of: (i) the tax equalization 46 formula factor multiplied by (ii) the approved operating expense multi- 47 plied by (iii) the regional cost index defined pursuant to paragraph a 48 of subdivision four of this section multiplied by (iv) twenty five 49 hundredths (.25). 50 (d) Tax limitation ceiling aid apportionment. (1) School districts 51 other than districts within a city with a population of one hundred 52 twenty-five thousand or more shall be eligible for a tax limitation 53 ceiling aid apportionment if: (i) the combined wealth ratio is less than 54 two and five-tenths (2.5); and (ii) the tax effort ratio defined pursu- 55 ant to subparagraph three of paragraph a of subdivision sixteen of this 56 section is greater than the statewide average tax effort ratio. For theS. 1707 3 1 two thousand twenty--two thousand twenty-one school year, for the 2 purpose of computing aid pursuant to this subdivision, the statewide tax 3 average effort ratio shall be two and ninety-one hundredths (2.91). 4 (2) For purposes of this subdivision, the tax ceiling shall be equal 5 to the product of (i) twenty-five dollars ($25) multiplied by (ii) the 6 quotient arrived at when dividing the tax effort ratio by the state 7 average tax effort ratio. 8 (3) The ceiling formula factor shall be equal to: 9 (i) thirty-three dollars and eleven cents ($33.11) for any school 10 district with a tax ceiling greater than or equal to twenty-five dollars 11 but less than forty dollars; 12 (ii) forty-five dollars and sixty cents ($45.60) for any school 13 district with a tax ceiling greater than or equal to forty dollars but 14 less than sixty dollars; and 15 (iii) forty-seven dollars and fifty-two cents ($47.52) for any school 16 district with a tax ceiling greater than or equal to sixty dollars. 17 (4) For eligible school districts, tax limitation ceiling aid appor- 18 tionment shall be equal to the product of: (i) the ceiling formula 19 factor, multiplied by (ii) the regional cost index, multiplied by (iii) 20 total aidable pupil units. 21 e. Wealth adjusted aid apportionment. (1) School districts other than 22 districts within a city with a population of one hundred twenty-five 23 thousand or more shall be eligible for a wealth adjusted aid apportion- 24 ment if: (i) the combined wealth ratio is less than two and five tenths 25 (2.5); and (ii) the quotient arrived at when dividing total general fund 26 expenditure by the total aidable pupil units expressed per one thousand 27 dollars is greater than the statewide average of such calculation. For 28 the two thousand twenty--two thousand twenty-one school year, for the 29 purpose of computing aid pursuant to this subdivision, the statewide 30 total general fund expenditure divided by total aidable pupil units 31 expressed per one thousand dollars shall be twenty dollars and fifty- 32 nine cents. 33 (2) For eligible school districts, the wealth adjusted tax rate aid 34 apportionment shall be equal to the product of: (i) seven hundred 35 dollars ($700) multiplied by (ii) total aidable pupils units multiplied 36 by (iii) the state sharing ratio computed pursuant to paragraph g of 37 subdivision three of this section. 38 f. "Residential real property tax levy reduction apportionment." (1) 39 School districts other than districts with a city with a population of 40 one hundred twenty-five thousand or more, shall be eligible for residen- 41 tial real property tax levy if the residential tax levy calculation is 42 equal to or greater than fifty percent. 43 (2) "Residential tax levy calculation" shall equal the quotient 44 arrived at when dividing the residential real property tax levy defined 45 pursuant to subparagraph one of paragraph a of subdivision sixteen of 46 this section divided by the total proposed spending for the year 47 commencing in the calendar year two years prior to the calendar year in 48 which the base year began. 49 (3) For eligible school districts, the "residential real property tax 50 levy reduction apportionment" shall mean the product of: (i) the posi- 51 tive difference, if any, between the residential tax levy calculation 52 defined pursuant to this subparagraph minus fifty percent multiplied by 53 (ii) the residential real property tax levy. 54 g. Method of payment. Notwithstanding any other provision of law to 55 the contrary, the New York state residential property tax relief act forS. 1707 4 1 public education aid shall be paid pursuant to section thirty-six 2 hundred nine-i of this part. 3 h. Definitions. As used in this subdivision: 4 (1) "Total real property tax levy" shall mean the total real property 5 tax levy specified in the school district budget for the year commencing 6 in the calendar year two years prior to the calendar year in which the 7 base year began. The final update of such data shall be reported by the 8 commissioner of taxation and finance to the commissioner by February 9 fifteenth of the base year. The commissioner of taxation and finance 10 shall adopt regulations as appropriate to assure the appropriate 11 collection, classification and reporting of such data for the purposes 12 of paying state aid to the schools. 13 (2) "Total proposed spending" shall mean for all school districts 14 other than districts within a city with a population of one hundred 15 twenty-five thousand or more, the amount reported by the common school 16 district, a union free school district, a central school district or a 17 city school district as required by the property tax report card 18 prepared by the district pursuant to the provisions of subdivision seven 19 of section sixteen hundred eight and subdivision seven of section seven- 20 teen hundred sixteen of this chapter. 21 § 4. The opening paragraph of subdivision 1 of section 3609-a of the 22 education law, as amended by section 32 of part B of chapter 57 of the 23 laws of 2007, is amended to read as follows: 24 The GSPS appropriation shall be used to support payments made pursuant 25 to this section, plus apportionments made pursuant to section seven 26 hundred one, seven hundred eleven, seven hundred fifty-one, seven 27 hundred fifty-three, thirty-two hundred two, thirty-six hundred nine-b, 28 thirty-six hundred forty-one and forty-four hundred five of this chap- 29 ter, any other applicable allocations made pursuant to this chapter, but 30 not paid pursuant to the schedule prescribed by this section or sections 31 thirty-six hundred nine-b, thirty-six hundred nine-d [or], thirty-six 32 hundred nine-f or thirty-six hundred nine-i of this article; plus any 33 unconsolidated law provisions which apply to programs funded from such 34 appropriation; plus any sums paid out upon audit of the state comp- 35 troller as final adjustments of apportionments originally claimed and 36 payable pursuant to this subdivision in prior school years; plus sums 37 paid out as prior year adjustments, to the extent an allowance was 38 included in such appropriation for such purpose. Any apportionments 39 provided by this chapter shall be paid in accordance with this section 40 unless specifically exempted. 41 § 5. The education law is amended by adding a new section 3609-i to 42 read as follows: 43 § 3609-i. Moneys apportioned to school districts for reimbursement of 44 apportionments pursuant to the New York state residential property tax 45 relief act for public education. 1. As used in this section, "school 46 district" shall mean a public school district eligible for an apportion- 47 ment of aid under subdivision four of section thirty-six hundred two of 48 this article. 49 2. Moneys apportioned to school districts for reimbursement of appor- 50 tionments pursuant to the New York state residential property tax relief 51 act for public education pursuant to subdivision forty-two of section 52 thirty-six hundred two of this part shall be disbursed as follows: 53 a. On or after the first business day of July of each school year, 54 commencing July first, two thousand twenty, a school district shall be 55 paid an amount equal to fifty percent of the payments on October first 56 of the current school year.S. 1707 5 1 b. The remaining balance shall be paid after February first, provided 2 that the amounts paid on or before February first shall not be subject 3 to recalculation. 4 c. No payment may be made pursuant to this subdivision until the 5 amount for each school district is certified by the commissioner of 6 taxation and finance and transmitted to the commissioner. Such certif- 7 ication shall be made on or before January first so as to facilitate 8 payments to be made pursuant to this section. 9 3. Moneys paid pursuant to this section shall be payable to the treas- 10 urer of each city school district, and the treasurer of each union free 11 school district and of each central school district and of each other 12 school district, if there be a treasurer, otherwise to the collector or 13 other disbursing officer of such district, who shall apply for and 14 receive the same as soon as payable. 15 4. Any payment to a school district pursuant to this section shall be 16 general receipts of the district and shall be used solely for the 17 reduction of the residential tax levy. 18 5. Notwithstanding any other provision of law to the contrary, 19 payments made to school districts under this section shall be considered 20 general aid payments made pursuant to section thirty-six hundred nine-a 21 of this part. 22 6. It is the intent of the governor to submit and of the legislature 23 to enact for each fiscal year after the two thousand twenty--two thou- 24 sand twenty-one fiscal year in an annual budget bill an appropriation in 25 the amount to be paid to school districts pursuant to subdivision 26 forty-two of section thirty-six hundred two of this part. 27 § 6. Paragraph a of subdivision 7 of section 1608 of the education 28 law, as amended by section 1 of chapter 514 of the laws of 2016, is 29 amended to read as follows: 30 a. Each year, commencing with the proposed budget for the two thou- 31 sand--two thousand one school year, the trustee or board of trustees 32 shall prepare a property tax report card, pursuant to regulations of the 33 commissioner, and shall make it publicly available by transmitting it to 34 local newspapers of general circulation, appending it to copies of the 35 proposed budget made publicly available as required by law, making it 36 available for distribution at the annual meeting, and otherwise dissem- 37 inating it as required by the commissioner. Such report card shall 38 include: (i) the amount of total spending and total estimated school tax 39 levy that would result from adoption of the proposed budget and the 40 percentage increase or decrease in total spending and total school tax 41 levy from the school district budget for the preceding school year; and 42 (ii) the district's tax levy limit determined pursuant to section two 43 thousand twenty-three-a of this title, and the estimated school tax 44 levy, excluding any levy necessary to support the expenditures pursuant 45 to subparagraphs (i) through (iv) of paragraph i of subdivision two of 46 section two thousand twenty-three-a of this title, that would result 47 from adoption of the proposed budget; and (iii) the projected enrollment 48 growth for the school year for which the budget is prepared, and the 49 percentage change in enrollment from the previous year; and (iv) the 50 percentage increase in the consumer price index, as defined in paragraph 51 c of this subdivision; and (v) the projected amount of the unappropri- 52 ated unreserved fund balance that will be retained if the proposed budg- 53 et is adopted, the projected amount of the reserved fund balance, the 54 projected amount of the appropriated fund balance, the percentage of the 55 proposed budget that the unappropriated unreserved fund balance repres- 56 ents, the actual unappropriated unreserved fund balance retained in theS. 1707 6 1 school district budget for the preceding school year, and the percentage 2 of the school district budget for the preceding school year that the 3 actual unappropriated unreserved fund balance represents[, and a sched-4ule of reserve funds, setting forth the name of each reserve fund, a5description of its purpose, the balance as of the close of the third6quarter of the current school district fiscal year and a brief statement7explaining any plans for the use of each such reserve fund for the ensu-8ing fiscal year]; and (vi) the amount of the New York state residential 9 property tax relief act for public education amount used to reduce the 10 residential tax levy for the ensuing fiscal year. 11 § 6-a. Paragraph a of subdivision 7 of section 1608 of the education 12 law, as amended by section 1-a of chapter 514 of the laws of 2016, is 13 amended to read as follows: 14 a. Each year, commencing with the proposed budget for the two thou- 15 sand--two thousand one school year, the trustee or board of trustees 16 shall prepare a property tax report card, pursuant to regulations of the 17 commissioner, and shall make it publicly available by transmitting it to 18 local newspapers of general circulation, appending it to copies of the 19 proposed budget made publicly available as required by law, making it 20 available for distribution at the annual meeting, and otherwise dissem- 21 inating it as required by the commissioner. Such report card shall 22 include: (i) the amount of total spending and total estimated school tax 23 levy that would result from adoption of the proposed budget and the 24 percentage increase or decrease in total spending and total school tax 25 levy from the school district budget for the preceding school year; and 26 (ii) the projected enrollment growth for the school year for which the 27 budget is prepared, and the percentage change in enrollment from the 28 previous year; and (iii) the percentage increase in the consumer price 29 index, as defined in paragraph c of this subdivision; and (iv) the 30 projected amount of the unappropriated unreserved fund balance that will 31 be retained if the proposed budget is adopted, the projected amount of 32 the reserved fund balance, the projected amount of the appropriated fund 33 balance, the percentage of the proposed budget that the unappropriated 34 unreserved fund balance represents, the actual unappropriated unreserved 35 fund balance retained in the school district budget for the preceding 36 school year, and the percentage of the school district budget for the 37 preceding school year that the actual unappropriated unreserved fund 38 balance represents; and (v) [a schedule of reserve funds, setting forth39the name of each reserve fund, a description of its purpose, the balance40as of the close of the third quarter of the current school district41fiscal year and a brief statement explaining any plans for the use of42each such reserve fund] the amount of the New York state residential 43 property tax relief act for public education amount used to reduce the 44 residential tax levy for the ensuing fiscal year. 45 § 7. Paragraph a of subdivision 7 of section 1716 of the education 46 law, as amended by section 2 of chapter 514 of the laws of 2016, is 47 amended to read as follows: 48 a. Each year, commencing with the proposed budget for the two thou- 49 sand--two thousand one school year, the board of education shall prepare 50 a property tax report card, pursuant to regulations of the commissioner, 51 and shall make it publicly available by transmitting it to local newspa- 52 pers of general circulation, appending it to copies of the proposed 53 budget made publicly available as required by law, making it available 54 for distribution at the annual meeting, and otherwise disseminating it 55 as required by the commissioner. Such report card shall include: (i) the 56 amount of total spending and total estimated school tax levy that wouldS. 1707 7 1 result from adoption of the proposed budget and the percentage increase 2 or decrease in total spending and total school tax levy from the school 3 district budget for the preceding school year; and (ii) the district's 4 tax levy limit determined pursuant to section two thousand 5 twenty-three-a of this title, and the estimated school tax levy, exclud- 6 ing any levy necessary to support the expenditures pursuant to subpara- 7 graphs (i) through (iv) of paragraph i of subdivision two of section two 8 thousand twenty-three-a of this title, that would result from adoption 9 of the proposed budget; and (iii) the projected enrollment growth for 10 the school year for which the budget is prepared, and the percentage 11 change in enrollment from the previous year; and (iv) the percentage 12 increase in the consumer price index, as defined in paragraph c of this 13 subdivision; and (v) the projected amount of the unappropriated unre- 14 served fund balance that will be retained if the proposed budget is 15 adopted, the projected amount of the reserved fund balance, the project- 16 ed amount of the appropriated fund balance, the percentage of the 17 proposed budget that the unappropriated unreserved fund balance repres- 18 ents, the actual unappropriated unreserved fund balance retained in the 19 school district budget for the preceding school year[, a schedule of20reserve funds, setting forth the name of each reserve fund, a21description of its purpose, the balance as of the close of the third22quarter of the current school district fiscal year and a brief statement23explaining any plans for the use of each such reserve fund for the ensu-24ing fiscal year and the percentage of the school district budget for the25preceding school year that the actual unappropriated unreserved fund26balance represents]; and (vi) the amount of the New York state residen- 27 tial property tax relief act for public education amount used to reduce 28 the residential tax levy for the ensuing fiscal year. 29 § 7-a. Paragraph a of subdivision 7 of section 1716 of the education 30 law, as amended by section 2-a of chapter 514 of the laws of 2016, is 31 amended to read as follows: 32 a. Each year, commencing with the proposed budget for the two thou- 33 sand--two thousand one school year, the board of education shall prepare 34 a property tax report card, pursuant to regulations of the commissioner, 35 and shall make it publicly available by transmitting it to local newspa- 36 pers of general circulation, appending it to copies of the proposed 37 budget made publicly available as required by law, making it available 38 for distribution at the annual meeting, and otherwise disseminating it 39 as required by the commissioner. Such report card shall include: (i) the 40 amount of total spending and total estimated school tax levy that would 41 result from adoption of the proposed budget and the percentage increase 42 or decrease in total spending and total school tax levy from the school 43 district budget for the preceding school year; and (ii) the projected 44 enrollment growth for the school year for which the budget is prepared, 45 and the percentage change in enrollment from the previous year; and 46 (iii) the percentage increase in the consumer price index, as defined in 47 paragraph c of this subdivision; and (iv) the projected amount of the 48 unappropriated unreserved fund balance that will be retained if the 49 proposed budget is adopted, the projected amount of the reserved fund 50 balance, the projected amount of the appropriated fund balance, the 51 percentage of the proposed budget that the unappropriated unreserved 52 fund balance represents, the actual unappropriated unreserved fund 53 balance retained in the school district budget for the preceding school 54 year[, a schedule of reserve funds, setting forth the name of each55reserve fund, a description of its purpose, the balance as of the close56of the third quarter of the current school district fiscal year and aS. 1707 8 1brief statement explaining any plans for the use of each such reserve2fund for the ensuing fiscal year and the percentage of the school3district budget for the preceding school year that the actual unappro-4priated unreserved fund balance represents]; and (v) the amount of the 5 New York state residential property tax relief act for public education 6 amount used to reduce the residential tax levy for the ensuing fiscal 7 year. 8 § 8. This act shall take effect immediately and shall apply to school 9 years commencing on and after July 1, 2020; provided that: 10 a. the amendments to paragraph a of subdivision 7 of section 1608 of 11 the education law made by section six of this act shall be subject to 12 the expiration and reversion of such paragraph pursuant to section 13 of 13 part A of chapter 97 of the laws of 2011, as amended, when upon such 14 date the provisions of section six-a of this act shall take effect; 15 b. the amendments to paragraph a of subdivision 7 of section 1716 of 16 the education law made by section seven of this act shall be subject to 17 the expiration and reversion of such paragraph pursuant to section 13 of 18 part A of chapter 97 of the laws of 2011, as amended, when upon such 19 date the provisions of section seven-a of this act shall take effect; 20 and 21 c. the provisions of this act shall expire and be deemed repealed on 22 July 1, 2023. 23 Effective immediately, the addition, amendment and/or repeal of any 24 rule or regulation necessary for the implementation of this act on its 25 effective date are authorized to be made and completed on or before such 26 effective date.
