NY State Senate Bill 2015-S7178A

Archive: Last Bill Status - In Senate Committee Education Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 04, 2016	print number 7178a
May 04, 2016	amend and recommit to education
Apr 05, 2016	referred to education

Bill Amendments

Original

A (Active)

co-Sponsors

2015-S7178 - Details

See Assembly Version of this Bill:: A9792
Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §2023-a, Ed L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3969, A226
2019-2020: A6533
2021-2022: A6081
2023-2024: A4687

2015-S7178 - Summary

Provides that the tax levy limit shall be equal to a zero percent increase over the prior year tax levy when the difference between the total amount of taxes levied for the prior year less the tax levy limit results in a negative number.

2015-S7178 - Sponsor Memo

                                 BILL NUMBER:  S7178

 TITLE OF BILL :

An act to amend the education law, in relation to limitations upon
school district tax levies

 PURPOSE :

This bill would ensure that no school district has a negative tax cap.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend subdivision 3 of section 2023-a of
the education law to state that the tax levy limit for school
districts cannot be less than the previous year's total tax levy.

Section 2 of the bill establishes the effective date.

 JUSTIFICATION :

Through the first four years of the property tax cap, dozens of school
districts have faced a negative tax cap. Due to the complex nature of
the formula and the number of factors used, school districts can be
capped at tax levies that are actually less than the levies in the
prior year. This means that a school district would have to cut its

tax levy and any programs and services those funds support, or hope
for a supermajority (60 percent) approval of its budget in order to
simply keep the tax levy flat.

The prospect of a negative tax cap also acts as a disincentive to many
school districts when it comes to finding budgetary efficiencies. For
example, if a district pre-pays debt related to construction of school
buildings, those savings would have a harmful effect on the district's
tax cap, potentially resulting in a negative cap.

The current process is also confusing to voters. The tax cap has been
advertised as a limit on the annual growth in property taxes, with a
supermajority needed to increase property taxes beyond that level.
School districts often struggle to explain to voters exactly why that
same supermajority might be needed to keep taxes flat or even decrease
taxes by an amount less than what a negative tax cap would allow.

 LEGISLATIVE HISTORY :

None

 FISCAL IMPLICATIONS :

None to the state

 EFFECTIVE DATE :
January 1 after it shall have become a law.

2015-S7178 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7178

                            I N  S E N A T E

                              April 5, 2016
                               ___________

Introduced  by  Sen.  SEWARD -- 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  limitations  upon
  school district tax levies

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 3 of section 2023-a of the  education  law,  as
added  by  section  2  of  part  A of chapter 97 of the laws of 2011, is
amended to read as follows:
  3. Computation of tax levy  limits.  a.  Each  school  district  shall
calculate  the tax levy limit for each school year which shall be deter-
mined as follows:
  (1) Ascertain the total amount of taxes levied for  the  prior  school
year.
  (2) Multiply the result by the tax base growth factor, if any.
  (3)  Add  any  payments  in  lieu of taxes that were receivable in the
prior school year.
  (4) Subtract the tax levy necessary to support the expenditures pursu-
ant to subparagraphs (i) and (iv) of paragraph i of subdivision  two  of
this section for the prior school year, if any.
  (5) Multiply the result by the allowable levy growth factor.
  (6)  Subtract  any  payments in lieu of taxes receivable in the coming
fiscal year.
  (7) Add the available carryover, if any.
  b. NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW TO THE CONTRARY,  IN
NO  CASE SHALL THE TAX LEVY LIMIT BE LESS THAN THE TOTAL AMOUNT OF TAXES
LEVIED FOR THE PRIOR YEAR.
  C. On or before March first of each year, any school district  subject
to the provisions of this section shall submit to the state comptroller,
the  commissioner,  and  the  commissioner of taxation and finance, in a
form and manner prescribed by the  state  comptroller,  any  information
necessary  for  the  calculation  of  the tax levy limit; and the school
district's determination of the tax levy limit pursuant to this  section

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14890-01-6

S. 7178                             2

shall  be  subject to review by the commissioner and the commissioner of
taxation and finance.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become  a  law;  provided,  however,
that  the amendments to section 2023-a of the education law made by this
act shall not affect the repeal of such  section  and  shall  be  deemed
repealed therewith.

co-Sponsors

View additional co-sponsors

2015-S7178A (ACTIVE) - Details

See Assembly Version of this Bill:: A9792
Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §2023-a, Ed L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3969, A226
2019-2020: A6533
2021-2022: A6081
2023-2024: A4687

2015-S7178A (ACTIVE) - Summary

2015-S7178A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7178A

 TITLE OF BILL :  An act to amend the education law, in relation to
limitations upon school district tax levies

 PURPOSE :

This bill would ensure that no school district has a negative tax cap.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend subdivision 3 of section 2023-a of
the education law to state that the tax levy limit for school
districts cannot be less than zero.

Section 2 of the bill establishes the effective date.

 JUSTIFICATION :

Through the first four years of the property tax cap, a number of
school districts have faced a negative tax cap. Due to the complex
nature of the formula and the number of factors used, school districts
can be capped at tax levies that are actually less than the levies in
the prior year. This means that a school district would have to cut
its tax levy and any programs and services those funds support, or
hope for a supermajority (60 percent) approval of its budget in order

to simply keep the tax levy flat.

The prospect of a negative tax cap also acts as a disincentive to many
school districts when it comes to finding budgetary efficiencies. For
example, if a district pre-pays debt related to construction of school
buildings, those savings would have a harmful effect on the district's
tax cap, potentially resulting in a year to year mandated reduction in
the property tax levy (negative tax cap).

The current process is also confusing to voters. The tax cap has been
advertised as a limit on the annual growth in property taxes, with a
supermajority needed to increase property taxes beyond that level.
School districts often struggle to explain to voters exactly why that
same supermajority might be needed to keep taxes flat or even decrease
taxes by an amount less than what a negative tax cap would allow.

 LEGISLATIVE HISTORY :

New bill

 FISCAL IMPLICATIONS :

None to the state

 EFFECTIVE DATE :
Immediate, with qualification.

2015-S7178A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7178--A

                            I N  S E N A T E

                              April 5, 2016
                               ___________

Introduced  by  Sens.  SEWARD,  BONACIC, BOYLE -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Educa-
  tion  --  committee  discharged,  bill  amended,  ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the education  law,  in  relation  to  limitations  upon
  school district tax levies

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph b of subdivision  3  of  section  2023-a  of  the
education law, as added by section 2 of part A of chapter 97 of the laws
of 2011, is amended to read as follows:
  b.  PROVIDED,  HOWEVER,  IF THE DIFFERENCE BETWEEN THE TOTAL AMOUNT OF
TAXES LEVIED FOR THE PRIOR YEAR LESS THE TAX LEVY  LIMIT  RESULTS  IN  A
NEGATIVE  NUMBER,  THE  TAX  LEVY LIMIT SHALL BE EQUAL TO A ZERO PERCENT
INCREASE OVER THE PRIOR YEAR TAX LEVY.
  C. On or before March first of each year, any school district  subject
to the provisions of this section shall submit to the state comptroller,
the  commissioner,  and  the  commissioner of taxation and finance, in a
form and manner prescribed by the  state  comptroller,  any  information
necessary  for  the  calculation  of  the tax levy limit; and the school
district's determination of the tax levy limit pursuant to this  section
shall  be  subject to review by the commissioner and the commissioner of
taxation and finance.
  S 2. This act shall take effect immediately, provided,  however,  that
the  amendments  to  section 2023-a of the education law made by section
one of this act shall not affect the repeal of such section and shall be
deemed to be repealed therewith.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14890-02-6

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Senate Bill S7178A

Sponsored By

Archive: Last Bill Status - In Senate Committee Education Committee

Bill Amendments

co-Sponsors

2015-S7178 - Details

2015-S7178 - Summary

2015-S7178 - Sponsor Memo

2015-S7178 - Bill Text download pdf

co-Sponsors

2015-S7178A (ACTIVE) - Details

2015-S7178A (ACTIVE) - Summary

2015-S7178A (ACTIVE) - Sponsor Memo

2015-S7178A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7178A

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Sponsored By

Archive: Last Bill Status - In Senate Committee Education Committee

Bill Amendments

co-Sponsors

2015-S7178 - Details

2015-S7178 - Summary

2015-S7178 - Sponsor Memo

2015-S7178 - Bill Text download pdf

co-Sponsors

2015-S7178A (ACTIVE) - Details

2015-S7178A (ACTIVE) - Summary

2015-S7178A (ACTIVE) - Sponsor Memo

2015-S7178A (ACTIVE) - Bill Text download pdf

Comments