LBD11188-02-4
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S 3502. BASIC QUALITY EDUCATION. 1. THE STATE SHALL ASSUME ALL
COSTS OF BASIC QUALITY EDUCATION, IN ACCORDANCE WITH SECTION THIRTY-FIVE
HUNDRED FIVE OF THIS ARTICLE, INCLUDING ALL GENERAL AND SPECIAL EDUCA-
TIONAL SERVICES WHICH THE COMMISSIONER, UNDER GUIDELINES ESTABLISHED BY
THE LEGISLATURE, SHALL DEFINE AS NECESSARY. BASIC QUALITY EDUCATION, AS
DEFINED BY THE COMMISSIONER, SHALL ALLOW SUFFICIENT LATITUDE SO THAT
CHOICES MAY BE MADE BY LOCAL SCHOOL DISTRICTS WITH RESPECT TO THEIR
INDIVIDUAL NEEDS. AS USED IN THIS ARTICLE "BASIC" SHALL MEAN EQUAL
SERVICES TO ALL PUPILS REGARDLESS OF DIFFERENCES IN COST IN DIFFERENT
DISTRICTS FOR SUCH SERVICES.
2. SUCH COSTS SHALL BE FUNDED AS PROVIDED FOR BY THE LEGISLATURE, IN
CONJUNCTION WITH THE ELIMINATION OF REAL ESTATE TAXES FOR THE SUPPORT OF
EDUCATION. WITHIN THE CITIES OF NEW YORK, BUFFALO, ROCHESTER, SYRACUSE
AND YONKERS, THE TAX ON REAL PROPERTY SHALL BE REDUCED BY THE DOLLAR
AMOUNT OF SUCH CITY'S SHARE OF THE COST OF PUBLIC SCHOOL EDUCATION.
SUCH REDUCTION SHALL BE APPORTIONED TO ALL REAL PROPERTY TAXPAYERS ON A
PRO-RATA BASIS, AND TENANTS SHALL RECEIVE TAX CREDITS, TAX REBATES, OR
REDUCTIONS IN RENT AS PROVIDED IN SECTION FOUR HUNDRED SIXTY-SEVEN-G OF
THE REAL PROPERTY TAX LAW.
3. EACH SCHOOL DISTRICT SHALL SUBMIT A BASIC BUDGET TO THE DEPARTMENT
FOR APPROVAL BY THE COMMISSIONER AS PROVIDED BY LAW.
4. THE DEPARTMENT, UNDER DIRECTION OF THE BOARD OF REGENTS, SHALL
ESTABLISH A SCHEDULE OF MANDATORY BASIC SERVICES AND AUTHORIZED COSTS
THEREFOR RELATED TO DIFFERING COSTS THROUGHOUT THE STATE. SUCH BASIC
SCHEDULE SHALL REFLECT GUIDELINES ESTABLISHED FOR THIS PURPOSE BY THE
LEGISLATURE.
S 3503. MINIMUM APPORTIONMENT. IN ANY SCHOOL YEAR A DISTRICT MAY
ELECT TO RECEIVE AS ITS BASIC BUDGET THE HIGHEST OF:
1. THE DISTRICT BUDGET OF THE SCHOOL YEAR DURING WHICH THIS ARTICLE
SHALL TAKE EFFECT, EXCEPT THAT THIS APPORTIONMENT OPTION SHALL EXIST
ONLY FOR THE PERIOD NOT EXCEEDING THE FIVE SCHOOL YEARS IMMEDIATELY
AFTER THIS ARTICLE SHALL TAKE EFFECT.
2. THE PRODUCT OF (A) THE DISTRICT BUDGET OF THE SCHOOL YEAR DURING
WHICH THIS ARTICLE SHALL TAKE EFFECT DIVIDED BY THE ENROLLMENT AT THE
START OF SUCH YEAR AND (B) THE ENROLLMENT AT THE START OF THE SCHOOL
YEAR FOR WHICH THE BUDGET IS BEING DETERMINED. THIS APPORTIONMENT
OPTION SHALL EXIST ONLY FOR THE PERIOD NOT EXCEEDING THE FIVE SCHOOL
YEARS IMMEDIATELY AFTER THIS ARTICLE SHALL BECOME LAW.
3. THE BASIC BUDGET SUBMITTED IN ACCORDANCE WITH SUBDIVISION THREE OF
SECTION THIRTY-FIVE HUNDRED TWO OF THIS ARTICLE, EXCEPT THAT IN NO CASE
SHALL THE PER PUPIL APPORTIONMENT EXCEED THE PER PUPIL APPORTIONMENT OF
THE PREVIOUS YEAR BY MORE THAN THE AVERAGE STATEWIDE INCREASE OF PER
PUPIL BUDGETS PLUS TEN PER CENTUM OF THE PER PUPIL APPORTIONMENT OF THE
PREVIOUS YEAR.
S 3504. LOCAL ENRICHMENT OPTIONS. 1. ANY SCHOOL DISTRICT, INCLUDING
THE CITY SCHOOL DISTRICTS OF THE CITIES OF NEW YORK, BUFFALO, ROCHESTER,
SYRACUSE AND YONKERS, MAY ELECT A LOCAL ENRICHMENT OPTION FOR SERVICES
NOT COVERED BY THE BASIC STATE SUPPORT. SUCH LOCAL ENRICHMENT OPTION
BUDGET SHALL BE APPROVED BY THE VOTERS OF THE DISTRICT.
2. THE LOCAL ENRICHMENT OPTION BUDGET SHALL BE FUNDED AS PROVIDED FOR
BY THE LEGISLATURE AS A SUPPLEMENTARY EDUCATION TAX ON INDIVIDUALS,
ESTATES, TRUSTS, UNINCORPORATED BUSINESSES AND CORPORATIONS HAVING A
RESIDENCE OR SITUS WITHIN EACH SCHOOL DISTRICT ELECTING SUCH OPTION.
3. THE LOCAL ENRICHMENT OPTION BUDGET SHALL NOT EXCEED TWENTY PER
CENTUM OF THE BASIC BUDGET FOR EACH DISTRICT ELECTING SUCH OPTION.
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S 3505. COLLECTION AND DISTRIBUTION. NOTWITHSTANDING THE PROVISIONS
OF ANY OTHER LAW, CODE, RULE OR REGULATION, THE STATE SHALL, WITHIN FIVE
YEARS FROM THE EFFECTIVE DATE OF THIS ARTICLE, COLLECT AND DISTRIBUTE TO
SCHOOL DISTRICTS ALL MONEYS RELATING TO THE FINANCING OF PUBLIC EDUCA-
TION, EXCLUSIVE OF HIGHER EDUCATION, WITHIN THIS STATE, AS PROVIDED BY
THE LEGISLATURE. THIS ASSUMPTION BY THE STATE OF ALL COSTS OF BASIC
QUALITY EDUCATION SHALL BE ACCOMPLISHED IN APPROXIMATELY EQUAL INCRE-
MENTS OVER A FIVE YEAR PERIOD FROM THE EFFECTIVE DATE OF THIS ARTICLE.
DURING THIS PERIOD, THE AMOUNT OF MONEY DERIVED BY EACH SCHOOL DISTRICT
FROM REAL PROPERTY TAXES SHALL BE REDUCED ACCORDINGLY. AFTER FIVE YEARS
FROM THE EFFECTIVE DATE OF THIS ARTICLE, MONEYS DISTRIBUTED TO ANY
SCHOOL DISTRICT SHALL BE REDUCED BY THE AMOUNT OF ANY REVENUES RECEIVED
BY SUCH SCHOOL DISTRICT FROM TAXES IMPOSED ON REAL PROPERTY BY OR ON
BEHALF OF SUCH SCHOOL DISTRICT.
S 3506. CONSTRUCTION WITH OTHER LAWS. THE PROVISIONS OF THIS ARTICLE
SHALL BE CONTROLLING, NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,
CODE, RULE OR REGULATION TO THE CONTRARY. HOWEVER, NO EXISTING RIGHT OR
REMEDY OF ANY CHARACTER SHALL BE LOST, IMPAIRED OR AFFECTED BY REASON OF
THIS ARTICLE, NOR SHALL THE VALIDITY OF ANY ACTION TAKEN BY ANY PUBLIC
OFFICIAL UNDER THE LAW IN FORCE IMMEDIATELY PRIOR TO THE TIME THIS ARTI-
CLE SHALL TAKE EFFECT BE AFFECTED BY THE ENACTMENT OF THIS ARTICLE.
COLLECTION OF ALL OUTSTANDING TAX LIENS SHALL BE PURSUANT TO THE
PROVISIONS OF THE REAL PROPERTY TAX LAW.
S 3507. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SECTION OR
PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR OR INVALI-
DATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS OPERATION TO
THE CLAUSE, SENTENCE, PARAGRAPH, SECTION OR PART THEREOF DIRECTLY
INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE BEEN
RENDERED.
S 2. Article 13 of the real property tax law is REPEALED.
S 3. The real property tax law is amended by adding a new section
467-h to read as follows:
S 467-H. PROVISIONS FOR TENANTS. IN EVERY CASE WHERE TAXES ON REAL
PROPERTY ARE REDUCED DUE TO THE REDUCTION OF SCHOOL TAXES ON SUCH PROP-
ERTY, THE AMOUNT OF SUCH REDUCTION SHALL BE PRO-RATED AMONG THE TENANTS,
IF ANY, OF SUCH REAL PROPERTY, AND THE TOTAL RENTS REDUCED IN AN AMOUNT
EQUAL TO SUCH REAL PROPERTY TAX REDUCTION. WHERE SUCH RENT REDUCTION IS
PRECLUDED BY A LEASE OR OTHER AGREEMENT, SUCH REAL PROPERTY TAX
REDUCTION SHALL ENTITLE SUCH TENANTS TO A TAX CREDIT IN THAT AMOUNT
AGAINST INCOME TAXES DUE, OR TO A REBATE FOR ANY AMOUNT IN EXCESS OF
INCOME TAXES DUE, UNTIL THE EXPIRATION OF SUCH LEASE OR AGREEMENT, AT
WHICH TIME THE RENT SHALL BE REDUCED ACCORDINGLY.
S 4. The tax law is amended by adding two new sections 601-b and
601-c to read as follows:
S 601-B. ADDITIONAL TAXES FOR EDUCATION. 1. IN ADDITION TO THE
TAXES ON INCOME IMPOSED BY THIS CHAPTER FOR TAXABLE YEARS OR PERIODS
ENDING ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND THIRTEEN, THERE
SHALL BE IMPOSED A TAX EQUAL TO A PERCENT OF THE TAXES IMPOSED BY SUCH
SECTIONS AND ARTICLES AS IS NECESSARY TO FULFILL THE REQUIREMENTS OF
SECTION THIRTY-FIVE HUNDRED TWO OF THE EDUCATION LAW. SUCH A TAX MAY BE
LEVIED EITHER AS A SURTAX, OR BY READJUSTMENT OF THE APPROPRIATE TAX
SCHEDULES.
2. THE COMMISSIONER SHALL ESTABLISH A SEPARATE ACCOUNT OR ACCOUNTS TO
RECEIVE THE ADDITIONAL TAX IMPOSED BY SUBSECTION ONE OF THIS SECTION AND
SHALL PAY INTO SUCH ACCOUNT OR ACCOUNTS THE TOTAL OF ALL SUCH TAXES WHEN
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RECEIVED AND RETAIN THE SAME SUBJECT TO DISBURSEMENT IN ACCORDANCE WITH
THE PROVISIONS OF THE EDUCATION LAW.
S 601-C. ENRICHMENT OPTION TAX. IN ADDITION TO THE TAX IMPOSED BY
SECTION SIX HUNDRED ONE-B OF THIS ARTICLE FOR TAXABLE YEARS OR PERIODS
ENDING ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND THIRTEEN, THERE
SHALL BE IMPOSED ON INDIVIDUALS, ESTATES, TRUSTS, UNINCORPORATED BUSI-
NESSES AND CORPORATIONS, HAVING A RESIDENCE OR SITUS WITHIN EACH SCHOOL
DISTRICT ELECTING A LOCAL ENRICHMENT OPTION PURSUANT TO THE EDUCATION
LAW, A TAX EQUAL TO A PERCENT OF THE TAX IMPOSED BY SECTION SIX HUNDRED
ONE-B OF THIS ARTICLE AS IS NECESSARY TO FULFILL THE REQUIREMENTS OF
SECTION THIRTY-FIVE HUNDRED FOUR OF THE EDUCATION LAW. THIS TAX SHALL
NOT EXCEED THIRTY PERCENT OF THE TAX IMPOSED BY SECTION SIX HUNDRED
ONE-B OF THIS ARTICLE. IN ANY DISTRICT WHERE SUCH TAX IS INSUFFICIENT
TO SATISFY BUDGET REQUIREMENTS AS PROVIDED IN SECTION THIRTY-FIVE
HUNDRED FOUR OF THE EDUCATION LAW, SUCH DEFICIENCY SHALL BE PAID BY THE
STATE IN ACCORDANCE WITH THE EDUCATION LAW.
S 5. Sections 1204, 1211 and 1212 of the tax law are REPEALED.
S 6. The tax law is amended by adding a new section 1200 to read as
follows:
S 1200. CERTAIN TAXES REDUCED. NOTWITHSTANDING THE PROVISIONS OF ANY
OTHER SECTION OF THIS ARTICLE, ON AND AFTER THE EFFECTIVE DATE OF THIS
SECTION, THE PROVISIONS OF THIS ARTICLE RELATING TO TAXES FOR THE BENE-
FIT OF SCHOOL DISTRICTS OR SCHOOL PURPOSES SHALL BE DEEMED REDUCED IN
ACCORDANCE WITH SECTION THIRTY-FIVE HUNDRED FIVE OF THE EDUCATION LAW.
S 7. Section 1213 of the tax law, as amended by section 2 of part WW
of chapter 57 of the laws of 2010, is amended to read as follows:
S 1213. Deliveries outside the jurisdiction where sale is made. Where
a sale of tangible personal property or services, including prepaid
telephone calling services, but not including other services described
in subdivision (b) of section eleven hundred five of this chapter,
including an agreement therefor, is made in any city[,] OR county [or
school district], but the property sold, the property upon which the
services were performed or prepaid telephone calling or other service is
or will be delivered to the purchaser elsewhere, such sale shall not be
subject to tax by such city[,] OR county [or school district]. However,
if delivery occurs or will occur in a city[,] OR county [or school
district] imposing a tax on the sale or use of such property, prepaid
telephone calling or other services, the vendor shall be required to
collect from the purchaser, as provided in section twelve hundred
fifty-four of this article, the aggregate sales or compensating use
taxes imposed by the city, if any, AND county [and school district] in
which delivery occurs or will occur, for distribution by the commission-
er to such taxing jurisdiction or jurisdictions. For the purposes of
this section delivery shall be deemed to include transfer of possession
to the purchaser and the receiving of the property or of the service,
including prepaid telephone calling service, by the purchaser. Notwith-
standing the foregoing, where a transportation service described in
paragraph ten of subdivision (c) of section eleven hundred five of this
chapter begins in one jurisdiction but ends in another jurisdiction, any
tax imposed pursuant to the authority of this article shall be due the
jurisdiction or jurisdictions where the service commenced.
S 8. Section 1220 of the tax law, as amended by section 39 of part Y
of chapter 63 of the laws of 2000, is amended to read as follows:
S 1220. Territorial limitations. Any tax imposed under the authority
of this article shall apply only within the territorial limits of the
city[,] OR county [or school district] imposing the tax, except that
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where the taxes described in subdivision (b) of section eleven hundred
five and clauses (E), (G) and (H) of subdivision (a) of section eleven
hundred ten or the tax described in subdivision (e) of section eleven
hundred five is imposed by a city, as provided in section twelve hundred
ten [or twelve hundred eleven] of this chapter, any establishment
located partially within such city and partially within a town or towns
and receiving or using any services or utilities provided by the city
shall be deemed to be wholly within such city for the purposes of such
taxes.
S 9. Section 1222 of the tax law, as added by chapter 93 of the laws
of 1965, is amended to read as follows:
S 1222. Taxes to be in addition to others. Except as expressly
otherwise provided in this article, any tax imposed under the authority
of this article shall be in addition to any and all other taxes author-
ized or imposed under any other provision of law. This article shall
not be construed as limiting the power of any city[,] OR county [or
school district] to impose any other tax which it is authorized to
impose under any other provision of law.
S 10. Section 1256 of the tax law, as amended by chapter 575 of the
laws of 1965, is amended to read as follows:
S 1256. Cooperation by localities. Every city[,] AND county [and
school district] shall cooperate with the [state tax commission] COMMIS-
SIONER to enable [it] HIM OR HER to carry out [its] HIS OR HER duties
under articles twenty-eight and twenty-nine of this chapter. Every such
locality shall furnish to such [commission] COMMISSIONER those returns,
reports and other information which the [tax commission] COMMISSIONER
deems necessary to carry out such duties, except that cities having a
population of one million or more, may, in their discretion, furnish
instead copies of such returns, reports and other information. Such
copies shall be furnished at the [tax commission's] COMMISSIONER'S
expense, such expenses to be charged to the cost of administration.
Notwithstanding any other law to the contrary, the duty to furnish
returns, reports and other information or copies thereof shall apply to
[those returns and reports filed under taxes authorized under chapter
eight hundred seventy-three of the laws of nineteen hundred thirty-four,
as amended, chapter three hundred forty-one of the laws of nineteen
hundred forty-six, as amended, article two-B of the general city law and
chapter two hundred seventy-eight of the laws of nineteen hundred
forty-seven, as amended, and to] such other information which is rele-
vant to the duties of the [tax commission] COMMISSIONER under such arti-
cles twenty-eight and twenty-nine OF THIS CHAPTER.
S 11. In order to provide for continuity of funding to school
districts, fifty percent of the school taxes due on July first in the
second year preceding the effective date of this act shall be paid as
heretofore required by law.
S 12. The commissioners of education and taxation and finance and the
chairman of the state board of real property services shall present to
the legislature a report stating the methodology for implementing the
provisions of this act. The report shall include a system for demon-
strating the impact of the act on municipalities and taxpayers for a one
year period preceding the implementation of the act. Such report shall
be due 90 days after this act becomes law.
S 13. This act shall take effect on the first of January next
succeeding the date on which it shall have become a law provided, howev-
er, that sections two, five, seven, eight, nine and ten of this act
shall take effect 3 years after such effective date.