NY State Senate Bill 2019-S1707

Senate Bill S1707

2019-2020 Legislative Session

Provides 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

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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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 19, 2020	print number 1707a
Feb 19, 2020	amend and recommit to education
Jan 08, 2020	referred to education
Jan 15, 2019	referred to education

Bill Amendments

Original

A (Active)

co-Sponsors

2019-S1707 - Details

Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §§3602, 3609-a, 1608 & 1716, add §3609-i, Ed L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8828
2021-2022: S1388

2019-S1707 - Summary

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.

2019-S1707 - Sponsor Memo

                                
 
BILL NUMBER: S1707

SPONSOR: BROOKS
 
TITLE OF BILL:  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 provid-
ing for the repeal of such provisions upon the expiration thereof

 
PURPOSE:

The purpose of this bill is to provide a residential property tax relief
act for public education aid apportionment for certain school years

 
SUMMARY OF PROVISIONS:

Section 1. provides the title.

Section 2. provides legislative findings.

Section 3. amends Section 3602 of the education law by adding a new
subdivision 42 providing a methodology for the allocation of funds for

residential tax relief; including a tax equalization apportionment; a
tax limitation ceiling apportionment; a wealth adjusted tax rate appor-
tionment and a residential property tax levy reduction apportionment. It
also provides definitions of total property tax levy, total proposed
spending and other terms.

Section 4. makes a reference to section 3609-a of the education law
regarding the payment of the New York State residential property tax
relief for public education; makes reference to a new section 3609-I of
the education law.

Section 5. amends Section 3609 of the education law by adding a new
section 3609-i creating a prescribed payment schedule; designating offi-
cers responsible for the receipt of residential tax levy relief funds;
and specifies uses of these funds for the sole purpose of the reducing
the residential tax levy.

Section 6. 6a, 7 and 7 a. requires common school districts, union free
school districts, central school districts to report the amount of the
New York State Residential property tax relief act used to reduce the
residential tax levy as part of the property tax report card.

Section 8. is the enacting clause.

 
JUSTIFICATION:

The legislature finds that the current primary and secondary education
funding systems, which is based on real property taxation, is antiquated
and creates serious disparities in educational opportunities and signif-
icant inequities with regard to distribution of the system's financial
burden.

The quality of education that children receive varies widely by
geographic region, as does the opportunity for children to participate
in extracurricular activities and for school districts to respond to the
needs associated with the changing demographic profile of the student
population.

In addition, residential property owners throughout the state receive
real property tax bills from their local school districts based on the
value of their homes, which is subject to multiple factors beyond their
control, rather than their financial ability to pay, creating serious
regional distortions in the relative cost of living.

The legislature further finds, changes in the federal tax code associ-
ated with the federal Tax Cuts and Jobs Act of 2017, will further
complicate the many concerns and shortfalls in the current funding and
distribution of aid formulas now in place. The legislature further finds
that our children should not be penalized based upon the geographic
location of their home, nor should financial support for the educational
system fall more heavily on those who are less able to bear the burden,
nor should homeowners be subject to tax penalties and fees as a result
of their educational tax payments.

Therefore, the legislature must take immediate action to provide relief
to those school districts most impacted by these disparities through the
Residential Property Tax Relief Act determined through a residential
property tax relief aid formula. This act shall be in effect for a peri-
od of three years to serve as a bridge period allowing the state legis-
lature to make a complete review of the educational programs and objec-
tives of the state of New York and development of an equitable funding
system for public education.

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
Shall take effect immediately and apply to school years beginning on
July 1, 2020.

2019-S1707 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1707
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             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:
 
   Section 1. This act shall be known and may be cited as the  "New  York
 state residential real property tax relief act for public education."
   §  2.  Legislative  findings.  The  legislature finds that the current
 primary and secondary education funding system, which is  based  largely
 upon  real property taxation, is antiquated and creates serious dispari-
 ties in educational opportunity and inequities with regard  to  distrib-
 ution  of  the  system's financial burden. The quality of education that
 children receive varies widely by geographic region, as does the  oppor-
 tunity  for  children  to participate in extracurricular activities.  In
 addition, taxpayers throughout the state receive real property tax bills
 from their local school districts based on the  value  of  their  homes,
 which  is  subject to multiple factors beyond their control, rather than
 their financial ability to pay, creating serious regional distortions in
 the relative cost of living. The  legislature  further  finds  that  our
 children  should  not be penalized based upon the geographic location of
 their home, nor should financial support for the educational system fall
 more heavily on those who are less able to bear the burden. The legisla-
 ture therefore must take immediate action to  provide  relief  to  those
 areas most impacted by these disparities through the residential proper-
 ty  tax  relief aid determined through a residential property tax relief
 aid formula. The legislature further orders an education  funding  study
 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.
                                                            LBD06906-01-9

 S. 1707                             2
 
 secondary educational system that allows  all  children  throughout  the
 state to receive the same educational opportunities.
   §  3.  Section  3602  of  the education law is amended by adding a new
 subdivision 42 to read as follows:
   42. NEW YORK STATE RESIDENTIAL PROPERTY  TAX  RELIEF  ACT  FOR  PUBLIC
 EDUCATION. A. ELIGIBILITY. (1) EACH SCHOOL DISTRICT SHALL BE ELIGIBLE TO
 RECEIVE  A NEW YORK STATE RESIDENTIAL PROPERTY TAX RELIEF ACT FOR PUBLIC
 EDUCATION AID APPORTIONMENT IN THE  TWO  THOUSAND  TWENTY--TWO  THOUSAND
 TWENTY-ONE SCHOOL YEAR, WHICH SHALL EQUAL THE GREATER OF: (I) THE SUM OF
 THE  TAX  EQUALIZATION AID APPORTIONMENT, THE TAX LIMITATION CEILING AID
 APPORTIONMENT, AND THE WEALTH ADJUSTED TAX RATE  AID  APPORTIONMENT;  OR
 (II) THE RESIDENTIAL PROPERTY TAX LEVY REDUCTION APPORTIONMENT.
   (2) EACH SCHOOL DISTRICT SHALL BE ELIGIBLE TO RECEIVE A NEW YORK STATE
 RESIDENTIAL  PROPERTY TAX RELIEF ACT FOR PUBLIC EDUCATION AID APPORTION-
 MENT IN THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR
 IN THE SAME AMOUNT AS IN THE BASE YEAR.
   (3) EACH SCHOOL DISTRICT SHALL BE ELIGIBLE TO RECEIVE A NEW YORK STATE
 RESIDENTIAL PROPERTY TAX RELIEF ACT FOR PUBLIC EDUCATION AID  APPORTION-
 MENT  IN  THE  TWO THOUSAND TWENTY-TWO--TWO THOUSAND TWENTY-THREE SCHOOL
 YEAR IN AN AMOUNT EQUAL TO THE NEW YORK STATE RESIDENTIAL  PROPERTY  TAX
 RELIEF  ACT  FOR  PUBLIC EDUCATION AID APPORTIONMENT IN THE TWO THOUSAND
 TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR MULTIPLIED  BY  ONE  AND
 SEVEN HUNDRED SIXTY-NINE TEN-THOUSANDTHS (1.0769).
   B.  PURPOSE.  FUNDS  ALLOCATED  UNDER THIS SUBDIVISION SHALL BE SOLELY
 USED FOR THE PURPOSE OF REDUCING THE RESIDENTIAL  TAX  LEVY  DEFINED  IN
 SUBPARAGRAPH ONE OF PARAGRAPH A OF SUBDIVISION SIXTEEN OF THIS SECTION.
   C. TAX EQUALIZATION AID APPORTIONMENT. (1) SCHOOL DISTRICTS OTHER THAN
 DISTRICTS  WITHIN  A  CITY  WITH A POPULATION OF ONE HUNDRED TWENTY-FIVE
 THOUSAND OR MORE SHALL BE ELIGIBLE FOR A TAX EQUALIZATION AID APPORTION-
 MENT IF:  (I) THE COMBINED WEALTH RATIO COMPUTED PURSUANT TO PARAGRAPH C
 OF SUBDIVISION THREE OF THIS SECTION IS LESS  THAN  ONE;  AND  (II)  THE
 EXPENSE  PER PUPIL DEFINED PURSUANT TO PARAGRAPH F OF SUBDIVISION ONE OF
 THIS SECTION IS GREATER THAN THE STATEWIDE AVERAGE  EXPENSE  PER  PUPIL.
 FOR  THE  TWO  THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL YEAR, FOR
 THE PURPOSE OF COMPUTING AID PURSUANT TO THIS SUBDIVISION, THE STATEWIDE
 AVERAGE EXPENSE PER PUPIL SHALL BE FOURTEEN THOUSAND SEVEN HUNDRED FIFTY
 DOLLARS.
   (2) THE TAX EQUALIZATION FORMULA FACTOR SHALL BE EQUAL TO THE POSITIVE
 DIFFERENCE OF THE APPROVED OPERATING EXPENSE DEFINED PURSUANT  TO  PARA-
 GRAPH T OF SUBDIVISION ONE OF THIS SECTION MINUS THE QUOTIENT ARRIVED AT
 WHEN  DIVIDING  THE  TOTAL REAL PROPERTY TAX LEVY BY TOTAL AIDABLE PUPIL
 UNITS DEFINED PURSUANT  TO  PARAGRAPH  E  OF  SUBDIVISION  ONE  OF  THIS
 SECTION.
   (3)  FOR  ELIGIBLE  SCHOOL DISTRICTS, THE TAX EQUALIZATION FORMULA AID
 APPORTIONMENT SHALL BE EQUAL TO THE PRODUCT OF: (I) THE TAX EQUALIZATION
 FORMULA FACTOR MULTIPLIED BY (II) THE APPROVED OPERATING EXPENSE  MULTI-
 PLIED  BY  (III) THE REGIONAL COST INDEX DEFINED PURSUANT TO PARAGRAPH A
 OF SUBDIVISION FOUR OF THIS  SECTION  MULTIPLIED  BY  (IV)  TWENTY  FIVE
 HUNDREDTHS (.25).
   (D)  TAX  LIMITATION  CEILING  AID APPORTIONMENT. (1) SCHOOL DISTRICTS
 OTHER THAN DISTRICTS WITHIN A CITY WITH  A  POPULATION  OF  ONE  HUNDRED
 TWENTY-FIVE  THOUSAND  OR  MORE  SHALL  BE ELIGIBLE FOR A TAX LIMITATION
 CEILING AID APPORTIONMENT IF: (I) THE COMBINED WEALTH RATIO IS LESS THAN
 TWO AND FIVE-TENTHS (2.5); AND (II) THE TAX EFFORT RATIO DEFINED  PURSU-
 ANT  TO SUBPARAGRAPH THREE OF PARAGRAPH A OF SUBDIVISION SIXTEEN OF THIS
 SECTION IS GREATER THAN THE STATEWIDE AVERAGE TAX EFFORT RATIO. FOR  THE

 S. 1707                             3
 
 TWO  THOUSAND  TWENTY--TWO  THOUSAND  TWENTY-ONE  SCHOOL  YEAR,  FOR THE
 PURPOSE OF COMPUTING AID PURSUANT TO THIS SUBDIVISION, THE STATEWIDE TAX
 AVERAGE EFFORT RATIO SHALL BE TWO AND NINETY-ONE HUNDREDTHS (2.91).
   (2)  FOR  PURPOSES OF THIS SUBDIVISION, THE TAX CEILING SHALL BE EQUAL
 TO THE PRODUCT OF (I) TWENTY-FIVE DOLLARS ($25) MULTIPLIED BY  (II)  THE
 QUOTIENT  ARRIVED  AT  WHEN  DIVIDING  THE TAX EFFORT RATIO BY THE STATE
 AVERAGE TAX EFFORT RATIO.
   (3) THE CEILING FORMULA FACTOR SHALL BE EQUAL TO:
   (I) THIRTY-THREE DOLLARS AND ELEVEN  CENTS  ($33.11)  FOR  ANY  SCHOOL
 DISTRICT WITH A TAX CEILING GREATER THAN OR EQUAL TO TWENTY-FIVE DOLLARS
 BUT LESS THAN FORTY DOLLARS;
   (II)  FORTY-FIVE  DOLLARS  AND  SIXTY  CENTS  ($45.60)  FOR ANY SCHOOL
 DISTRICT WITH A TAX CEILING GREATER THAN OR EQUAL TO FORTY  DOLLARS  BUT
 LESS THAN SIXTY DOLLARS; AND
   (III)  FORTY-SEVEN DOLLARS AND FIFTY-TWO CENTS ($47.52) FOR ANY SCHOOL
 DISTRICT WITH A TAX CEILING GREATER THAN OR EQUAL TO SIXTY DOLLARS.
   (4) FOR ELIGIBLE SCHOOL DISTRICTS, TAX LIMITATION CEILING  AID  APPOR-
 TIONMENT  SHALL  BE  EQUAL  TO  THE  PRODUCT OF: (I) THE CEILING FORMULA
 FACTOR, MULTIPLIED BY (II) THE REGIONAL COST INDEX, MULTIPLIED BY  (III)
 TOTAL AIDABLE PUPIL UNITS.
   E.  WEALTH ADJUSTED AID APPORTIONMENT. (1) SCHOOL DISTRICTS OTHER THAN
 DISTRICTS WITHIN A CITY WITH A POPULATION  OF  ONE  HUNDRED  TWENTY-FIVE
 THOUSAND  OR MORE SHALL BE ELIGIBLE FOR A WEALTH ADJUSTED AID APPORTION-
 MENT IF:  (I) THE COMBINED WEALTH RATIO IS LESS THAN TWO AND FIVE TENTHS
 (2.5); AND (II) THE QUOTIENT ARRIVED AT WHEN DIVIDING TOTAL GENERAL FUND
 EXPENDITURE BY THE TOTAL AIDABLE PUPIL UNITS EXPRESSED PER ONE  THOUSAND
 DOLLARS  IS  GREATER THAN THE STATEWIDE AVERAGE OF SUCH CALCULATION. FOR
 THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL  YEAR,  FOR  THE
 PURPOSE  OF  COMPUTING  AID  PURSUANT TO THIS SUBDIVISION, THE STATEWIDE
 TOTAL GENERAL FUND EXPENDITURE DIVIDED  BY  TOTAL  AIDABLE  PUPIL  UNITS
 EXPRESSED  PER  ONE  THOUSAND DOLLARS SHALL BE TWENTY DOLLARS AND FIFTY-
 NINE CENTS.
   (2) FOR ELIGIBLE SCHOOL DISTRICTS, THE WEALTH ADJUSTED  TAX  RATE  AID
 APPORTIONMENT  SHALL  BE  EQUAL  TO  THE  PRODUCT  OF: (I) SEVEN HUNDRED
 DOLLARS ($700) MULTIPLIED BY (II) TOTAL AIDABLE PUPILS UNITS  MULTIPLIED
 BY  (III)  THE  STATE  SHARING RATIO COMPUTED PURSUANT TO PARAGRAPH G OF
 SUBDIVISION THREE OF THIS SECTION.
   F. "RESIDENTIAL REAL PROPERTY TAX LEVY REDUCTION  APPORTIONMENT."  (1)
 SCHOOL  DISTRICTS  OTHER THAN DISTRICTS WITH A CITY WITH A POPULATION OF
 ONE HUNDRED TWENTY-FIVE THOUSAND OR MORE, SHALL BE ELIGIBLE FOR RESIDEN-
 TIAL REAL PROPERTY TAX LEVY IF THE RESIDENTIAL TAX LEVY  CALCULATION  IS
 EQUAL TO OR GREATER THAN FIFTY PERCENT.
   (2)  "RESIDENTIAL  TAX  LEVY  CALCULATION"  SHALL  EQUAL  THE QUOTIENT
 ARRIVED AT WHEN DIVIDING THE RESIDENTIAL REAL PROPERTY TAX LEVY  DEFINED
 PURSUANT  TO  SUBPARAGRAPH  ONE OF PARAGRAPH A OF SUBDIVISION SIXTEEN OF
 THIS SECTION DIVIDED  BY  THE  TOTAL  PROPOSED  SPENDING  FOR  THE  YEAR
 COMMENCING  IN THE CALENDAR YEAR TWO YEARS PRIOR TO THE CALENDAR YEAR IN
 WHICH THE BASE YEAR BEGAN.
   (3) FOR ELIGIBLE SCHOOL DISTRICTS, THE "RESIDENTIAL REAL PROPERTY  TAX
 LEVY  REDUCTION  APPORTIONMENT" SHALL MEAN THE PRODUCT OF: (I) THE POSI-
 TIVE DIFFERENCE, IF ANY, BETWEEN THE RESIDENTIAL  TAX  LEVY  CALCULATION
 DEFINED  PURSUANT TO THIS SUBPARAGRAPH MINUS FIFTY PERCENT MULTIPLIED BY
 (II) THE RESIDENTIAL REAL PROPERTY TAX LEVY.
   G. METHOD OF PAYMENT. NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW  TO
 THE CONTRARY, THE NEW YORK STATE RESIDENTIAL PROPERTY TAX RELIEF ACT FOR

 S. 1707                             4
 
 PUBLIC  EDUCATION  AID  SHALL  BE  PAID  PURSUANT  TO SECTION THIRTY-SIX
 HUNDRED NINE-I OF THIS PART.
   H. DEFINITIONS. AS USED IN THIS SUBDIVISION:
   (1)  "TOTAL REAL PROPERTY TAX LEVY" SHALL MEAN THE TOTAL REAL PROPERTY
 TAX LEVY SPECIFIED IN THE SCHOOL DISTRICT BUDGET FOR THE YEAR COMMENCING
 IN THE CALENDAR YEAR TWO YEARS PRIOR TO THE CALENDAR YEAR IN  WHICH  THE
 BASE  YEAR BEGAN. THE FINAL UPDATE OF SUCH DATA SHALL BE REPORTED BY THE
 COMMISSIONER OF TAXATION AND FINANCE TO  THE  COMMISSIONER  BY  FEBRUARY
 FIFTEENTH  OF  THE  BASE  YEAR. THE COMMISSIONER OF TAXATION AND FINANCE
 SHALL  ADOPT  REGULATIONS  AS  APPROPRIATE  TO  ASSURE  THE  APPROPRIATE
 COLLECTION,  CLASSIFICATION  AND REPORTING OF SUCH DATA FOR THE PURPOSES
 OF PAYING STATE AID TO THE SCHOOLS.
   (2) "TOTAL PROPOSED SPENDING" SHALL  MEAN  FOR  ALL  SCHOOL  DISTRICTS
 OTHER  THAN  DISTRICTS  WITHIN  A  CITY WITH A POPULATION OF ONE HUNDRED
 TWENTY-FIVE THOUSAND OR MORE, THE AMOUNT REPORTED BY THE  COMMON  SCHOOL
 DISTRICT,  A  UNION FREE SCHOOL DISTRICT, A CENTRAL SCHOOL DISTRICT OR A
 CITY SCHOOL DISTRICT  AS  REQUIRED  BY  THE  PROPERTY  TAX  REPORT  CARD
 PREPARED BY THE DISTRICT PURSUANT TO THE PROVISIONS OF SUBDIVISION SEVEN
 OF SECTION SIXTEEN HUNDRED EIGHT AND SUBDIVISION SEVEN OF SECTION SEVEN-
 TEEN HUNDRED SIXTEEN OF THIS CHAPTER.
   §  4.  The opening paragraph of subdivision 1 of section 3609-a of the
 education law, as amended by section 32 of part B of chapter 57  of  the
 laws of 2007, is amended to read as follows:
   The GSPS appropriation shall be used to support payments made pursuant
 to  this  section,  plus  apportionments  made pursuant to section seven
 hundred one,  seven  hundred  eleven,  seven  hundred  fifty-one,  seven
 hundred  fifty-three, thirty-two hundred two, thirty-six hundred nine-b,
 thirty-six hundred forty-one and forty-four hundred five of  this  chap-
 ter, any other applicable allocations made pursuant to this chapter, but
 not paid pursuant to the schedule prescribed by this section or sections
 thirty-six  hundred  nine-b,  thirty-six hundred nine-d [or], thirty-six
 hundred nine-f OR THIRTY-SIX HUNDRED NINE-I of this  article;  plus  any
 unconsolidated  law  provisions which apply to programs funded from such
 appropriation; plus any sums paid out upon  audit  of  the  state  comp-
 troller  as  final  adjustments of apportionments originally claimed and
 payable pursuant to this subdivision in prior school  years;  plus  sums
 paid  out  as  prior  year  adjustments,  to the extent an allowance was
 included in such appropriation  for  such  purpose.  Any  apportionments
 provided  by  this chapter shall be paid in accordance with this section
 unless specifically exempted.
   § 5. The education law is amended by adding a new  section  3609-i  to
 read as follows:
   §  3609-I. MONEYS APPORTIONED TO SCHOOL DISTRICTS FOR REIMBURSEMENT OF
 APPORTIONMENTS PURSUANT TO THE NEW YORK STATE RESIDENTIAL  PROPERTY  TAX
 RELIEF  ACT  FOR  PUBLIC  EDUCATION. 1. AS USED IN THIS SECTION, "SCHOOL
 DISTRICT" SHALL MEAN A PUBLIC SCHOOL DISTRICT ELIGIBLE FOR AN APPORTION-
 MENT OF AID UNDER SUBDIVISION FOUR OF SECTION THIRTY-SIX HUNDRED TWO  OF
 THIS ARTICLE.
   2.  MONEYS APPORTIONED TO SCHOOL DISTRICTS FOR REIMBURSEMENT OF APPOR-
 TIONMENTS PURSUANT TO THE NEW YORK STATE RESIDENTIAL PROPERTY TAX RELIEF
 ACT FOR PUBLIC EDUCATION PURSUANT TO SUBDIVISION  FORTY-TWO  OF  SECTION
 THIRTY-SIX HUNDRED TWO OF THIS PART SHALL BE DISBURSED AS FOLLOWS:
   A.  ON  OR  AFTER  THE FIRST BUSINESS DAY OF JULY OF EACH SCHOOL YEAR,
 COMMENCING JULY FIRST, TWO THOUSAND TWENTY, A SCHOOL DISTRICT  SHALL  BE
 PAID  AN  AMOUNT EQUAL TO FIFTY PERCENT OF THE PAYMENTS ON OCTOBER FIRST
 OF THE CURRENT SCHOOL YEAR.

 S. 1707                             5
 
   B. THE REMAINING BALANCE SHALL BE PAID AFTER FEBRUARY FIRST,  PROVIDED
 THAT  THE  AMOUNTS PAID ON OR BEFORE FEBRUARY FIRST SHALL NOT BE SUBJECT
 TO RECALCULATION.
   C.  NO  PAYMENT  MAY  BE  MADE  PURSUANT TO THIS SUBDIVISION UNTIL THE
 AMOUNT FOR EACH SCHOOL DISTRICT IS  CERTIFIED  BY  THE  COMMISSIONER  OF
 TAXATION  AND  FINANCE AND TRANSMITTED TO THE COMMISSIONER. SUCH CERTIF-
 ICATION SHALL BE MADE ON OR BEFORE JANUARY FIRST  SO  AS  TO  FACILITATE
 PAYMENTS TO BE MADE PURSUANT TO THIS SECTION.
   3. MONEYS PAID PURSUANT TO THIS SECTION SHALL BE PAYABLE TO THE TREAS-
 URER  OF EACH CITY SCHOOL DISTRICT, AND THE TREASURER OF EACH UNION FREE
 SCHOOL DISTRICT AND OF EACH CENTRAL SCHOOL DISTRICT AND  OF  EACH  OTHER
 SCHOOL  DISTRICT, IF THERE BE A TREASURER, OTHERWISE TO THE COLLECTOR OR
 OTHER DISBURSING OFFICER OF SUCH  DISTRICT,  WHO  SHALL  APPLY  FOR  AND
 RECEIVE THE SAME AS SOON AS PAYABLE.
   4.  ANY PAYMENT TO A SCHOOL DISTRICT PURSUANT TO THIS SECTION SHALL BE
 GENERAL RECEIPTS OF THE DISTRICT  AND  SHALL  BE  USED  SOLELY  FOR  THE
 REDUCTION OF THE RESIDENTIAL TAX LEVY.
   5.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  LAW  TO  THE CONTRARY,
 PAYMENTS MADE TO SCHOOL DISTRICTS UNDER THIS SECTION SHALL BE CONSIDERED
 GENERAL AID PAYMENTS MADE PURSUANT TO SECTION THIRTY-SIX HUNDRED  NINE-A
 OF THIS PART.
   6.  IT  IS THE INTENT OF THE GOVERNOR TO SUBMIT AND OF THE LEGISLATURE
 TO ENACT FOR EACH FISCAL YEAR AFTER THE TWO THOUSAND  TWENTY--TWO  THOU-
 SAND TWENTY-ONE FISCAL YEAR IN AN ANNUAL BUDGET BILL AN APPROPRIATION IN
 THE  AMOUNT  TO  BE  PAID  TO  SCHOOL  DISTRICTS PURSUANT TO SUBDIVISION
 FORTY-TWO OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART.
   § 6. Paragraph a of subdivision 7 of section  1608  of  the  education
 law,  as  amended  by  section  1 of chapter 514 of the laws of 2016, is
 amended to read as follows:
   a. Each year, commencing with the proposed budget for  the  two  thou-
 sand--two  thousand  one  school  year, the trustee or board of trustees
 shall prepare a property tax report card, pursuant to regulations of the
 commissioner, and shall make it publicly available by transmitting it to
 local newspapers of general circulation, appending it to copies  of  the
 proposed  budget  made  publicly available as required by law, making it
 available for distribution at the annual meeting, and otherwise  dissem-
 inating  it  as  required  by  the  commissioner. Such report card shall
 include: (i) the amount of total spending and total estimated school tax
 levy that would result from adoption of  the  proposed  budget  and  the
 percentage  increase  or decrease in total spending and total school tax
 levy from the school district budget for the preceding school year;  and
 (ii)  the  district's  tax levy limit determined pursuant to section two
 thousand twenty-three-a of this title,  and  the  estimated  school  tax
 levy,  excluding any levy necessary to support the expenditures pursuant
 to subparagraphs (i) through (iv) of paragraph i of subdivision  two  of
 section  two  thousand  twenty-three-a  of this title, that would result
 from adoption of the proposed budget; and (iii) the projected enrollment
 growth for the school year for which the budget  is  prepared,  and  the
 percentage  change  in  enrollment  from the previous year; and (iv) the
 percentage increase in the consumer price index, as defined in paragraph
 c of this subdivision; and (v) the projected amount of  the  unappropri-
 ated unreserved fund balance that will be retained if the proposed budg-
 et  is  adopted,  the projected amount of the reserved fund balance, the
 projected amount of the appropriated fund balance, the percentage of the
 proposed budget that the unappropriated unreserved fund balance  repres-
 ents,  the actual unappropriated unreserved fund balance retained in the

 S. 1707                             6
 
 school district budget for the preceding school year, and the percentage
 of the school district budget for the preceding  school  year  that  the
 actual  unappropriated unreserved fund balance represents[, and a sched-
 ule  of  reserve  funds,  setting forth the name of each reserve fund, a
 description of its purpose, the balance as of the  close  of  the  third
 quarter of the current school district fiscal year and a brief statement
 explaining any plans for the use of each such reserve fund for the ensu-
 ing  fiscal year]; AND (VI) THE AMOUNT OF THE NEW YORK STATE RESIDENTIAL
 PROPERTY TAX RELIEF ACT FOR PUBLIC EDUCATION AMOUNT USED TO  REDUCE  THE
 RESIDENTIAL TAX LEVY FOR THE ENSUING FISCAL YEAR.
   §  6-a.  Paragraph a of subdivision 7 of section 1608 of the education
 law, as amended by section 1-a of chapter 514 of the laws  of  2016,  is
 amended to read as follows:
   a.  Each  year,  commencing with the proposed budget for the two thou-
 sand--two thousand one school year, the trustee  or  board  of  trustees
 shall prepare a property tax report card, pursuant to regulations of the
 commissioner, and shall make it publicly available by transmitting it to
 local  newspapers  of general circulation, appending it to copies of the
 proposed budget made publicly available as required by  law,  making  it
 available  for distribution at the annual meeting, and otherwise dissem-
 inating it as required by  the  commissioner.  Such  report  card  shall
 include: (i) the amount of total spending and total estimated school tax
 levy  that  would  result  from  adoption of the proposed budget and the
 percentage increase or decrease in total spending and total  school  tax
 levy  from the school district budget for the preceding school year; and
 (ii) the projected enrollment growth for the school year for  which  the
 budget  is  prepared,  and  the percentage change in enrollment from the
 previous year; and (iii) the percentage increase in the  consumer  price
 index,  as  defined  in  paragraph  c  of this subdivision; and (iv) the
 projected amount of the unappropriated unreserved fund balance that will
 be retained if the proposed budget is adopted, the projected  amount  of
 the reserved fund balance, the projected amount of the appropriated fund
 balance,  the  percentage of the proposed budget that the unappropriated
 unreserved fund balance represents, the actual unappropriated unreserved
 fund balance retained in the school district budget  for  the  preceding
 school  year,  and  the percentage of the school district budget for the
 preceding school year that the  actual  unappropriated  unreserved  fund
 balance  represents; and (v) [a schedule of reserve funds, setting forth
 the name of each reserve fund, a description of its purpose, the balance
 as of the close of the third quarter  of  the  current  school  district
 fiscal  year  and  a brief statement explaining any plans for the use of
 each such reserve fund] THE AMOUNT OF THE  NEW  YORK  STATE  RESIDENTIAL
 PROPERTY  TAX  RELIEF ACT FOR PUBLIC EDUCATION AMOUNT USED TO REDUCE THE
 RESIDENTIAL TAX LEVY for the ensuing fiscal year.
   § 7. Paragraph a of subdivision 7 of section  1716  of  the  education
 law,  as  amended  by  section  2 of chapter 514 of the laws of 2016, is
 amended to read as follows:
   a. Each year, commencing with the proposed budget for  the  two  thou-
 sand--two thousand one school year, the board of education shall prepare
 a property tax report card, pursuant to regulations of the commissioner,
 and shall make it publicly available by transmitting it to local newspa-
 pers  of  general  circulation,  appending  it to copies of the proposed
 budget made publicly available as required by law, making  it  available
 for  distribution  at the annual meeting, and otherwise disseminating it
 as required by the commissioner. Such report card shall include: (i) the
 amount of total spending and total estimated school tax levy that  would

 S. 1707                             7
 
 result  from adoption of the proposed budget and the percentage increase
 or decrease in total spending and total school tax levy from the  school
 district  budget  for the preceding school year; and (ii) the district's
 tax   levy   limit   determined   pursuant   to   section  two  thousand
 twenty-three-a of this title, and the estimated school tax levy, exclud-
 ing any levy necessary to support the expenditures pursuant to  subpara-
 graphs (i) through (iv) of paragraph i of subdivision two of section two
 thousand  twenty-three-a  of this title, that would result from adoption
 of the proposed budget; and (iii) the projected  enrollment  growth  for
 the  school  year  for  which the budget is prepared, and the percentage
 change in enrollment from the previous year;  and  (iv)  the  percentage
 increase  in the consumer price index, as defined in paragraph c of this
 subdivision; and (v) the projected amount of  the  unappropriated  unre-
 served  fund  balance  that  will  be retained if the proposed budget is
 adopted, the projected amount of the reserved fund balance, the project-
 ed amount of the  appropriated  fund  balance,  the  percentage  of  the
 proposed  budget that the unappropriated unreserved fund balance repres-
 ents, the actual unappropriated unreserved fund balance retained in  the
 school  district  budget  for  the preceding school year[, a schedule of
 reserve  funds,  setting  forth  the  name  of  each  reserve  fund,   a
 description  of  its  purpose,  the balance as of the close of the third
 quarter of the current school district fiscal year and a brief statement
 explaining any plans for the use of each such reserve fund for the ensu-
 ing fiscal year and the percentage of the school district budget for the
 preceding school year that the  actual  unappropriated  unreserved  fund
 balance  represents]; AND (VI) THE AMOUNT OF THE NEW YORK STATE RESIDEN-
 TIAL PROPERTY TAX RELIEF ACT FOR PUBLIC EDUCATION AMOUNT USED TO  REDUCE
 THE RESIDENTIAL TAX LEVY FOR THE ENSUING FISCAL YEAR.
   §  7-a.  Paragraph a of subdivision 7 of section 1716 of the education
 law, as amended by section 2-a of chapter 514 of the laws  of  2016,  is
 amended to read as follows:
   a.  Each  year,  commencing with the proposed budget for the two thou-
 sand--two thousand one school year, the board of education shall prepare
 a property tax report card, pursuant to regulations of the commissioner,
 and shall make it publicly available by transmitting it to local newspa-
 pers of general circulation, appending it  to  copies  of  the  proposed
 budget  made  publicly available as required by law, making it available
 for distribution at the annual meeting, and otherwise  disseminating  it
 as required by the commissioner. Such report card shall include: (i) the
 amount  of total spending and total estimated school tax levy that would
 result from adoption of the proposed budget and the percentage  increase
 or  decrease in total spending and total school tax levy from the school
 district budget for the preceding school year; and  (ii)  the  projected
 enrollment  growth for the school year for which the budget is prepared,
 and the percentage change in enrollment  from  the  previous  year;  and
 (iii) the percentage increase in the consumer price index, as defined in
 paragraph  c  of  this subdivision; and (iv) the projected amount of the
 unappropriated unreserved fund balance that  will  be  retained  if  the
 proposed  budget  is  adopted, the projected amount of the reserved fund
 balance, the projected amount of  the  appropriated  fund  balance,  the
 percentage  of  the  proposed  budget that the unappropriated unreserved
 fund balance  represents,  the  actual  unappropriated  unreserved  fund
 balance  retained in the school district budget for the preceding school
 year[, a schedule of reserve funds,  setting  forth  the  name  of  each
 reserve  fund, a description of its purpose, the balance as of the close
 of the third quarter of the current school district fiscal  year  and  a

 S. 1707                             8

 brief  statement  explaining  any plans for the use of each such reserve
 fund for the ensuing fiscal  year  and  the  percentage  of  the  school
 district  budget  for the preceding school year that the actual unappro-
 priated  unreserved  fund balance represents]; AND (V) THE AMOUNT OF THE
 NEW YORK STATE RESIDENTIAL PROPERTY TAX RELIEF ACT FOR PUBLIC  EDUCATION
 AMOUNT  USED  TO  REDUCE THE RESIDENTIAL TAX LEVY FOR THE ENSUING FISCAL
 YEAR.
   § 8. This act shall take effect immediately and shall apply to  school
 years commencing on and after July 1, 2020; provided that:
   a.  the  amendments to paragraph a of subdivision 7 of section 1608 of
 the education law made by section six of this act shall  be  subject  to
 the expiration and reversion of such paragraph pursuant to section 13 of
 part  A  of  chapter  97 of the laws of 2011, as amended, when upon such
 date the provisions of section six-a of this act shall take effect;
   b. the amendments to paragraph a of subdivision 7 of section  1716  of
 the  education law made by section seven of this act shall be subject to
 the expiration and reversion of such paragraph pursuant to section 13 of
 part A of chapter 97 of the laws of 2011, as  amended,  when  upon  such
 date  the  provisions  of section seven-a of this act shall take effect;
 and
   c. the provisions of this act shall expire and be deemed  repealed  on
 July 1, 2023.
   Effective  immediately,  the  addition, amendment and/or repeal of any
 rule or regulation necessary for the implementation of this act  on  its
 effective date are authorized to be made and completed on or before such
 effective date.

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2019-S1707A (ACTIVE) - Details

Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §§3602, 3609-a, 1608 & 1716, add §3609-i, Ed L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8828
2021-2022: S1388

2019-S1707A (ACTIVE) - Summary

2019-S1707A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1707A

SPONSOR: BROOKS
 
TITLE OF BILL:

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

 
PURPOSE:

The purpose of this bill is to provide property tax relief to homeowners
in high-tax, low-wealth school districts for the next three years. This
bill caps the share of the school district's budget that can be paid by
property taxes and provides compensating funds from the state's general
fund.

 
SUMMARY OF PROVISIONS:

  Section 1. names this act the "New York state residential real proper-

ty tax relief act for public education."

  Section 2. describes the legislative findings.

  Section  3. describes the New York state residential real property tax
relief act for public education aid apportionment formula  and  eligible
school districts.

  Section  4. amends subdivision 1 of subsection 3609-a of the education
law by ensuring that the provisions of section 3609-i  is  not  paid  by
funds from the GSPS.

  Section  5. amends the education law by adding a new section 3609-i to
outline a schedule of payments for the residential property  tax  relief
act for public education aid apportionment.

  Section  6. amends paragraph a of subdivision 7 of section 1608 of the
education law by requiring the trustee or board of  trustees  to  submit
the  total tax levy reduction due to the residential property tax relief
act for public education aid apportionment into the property tax  report
card submitted annually.

  Section  7. amends paragraph a of subdivision 7 of section 1716 of the
education law by requiring the board of education to  submit  the  total
tax  levy  reduction  due to the residential property tax relief act for
public education aid apportionment into the  property  tax  report  card
submitted annually.

  Section 8. is the enacting clause.

 
JUSTIFICATION:

The  current  primary  and  secondary education funding system, which is
based largely upon real property taxation,  is  antiquated  and  creates
serious  disparities  in  educational  opportunity  and  inequities with
regard to distribution of the system's financial burden. The quality  of
education  that  children receive varies widely by geographic region, as

does the opportunity for  children  to  participate  in  extracurricular
activities.

In  addition,  taxpayers  throughout the state receive real property tax
bills from their local school districts based  on  the  value  of  their
homes,  which is subject to multiple factors beyond their control rather
than their financial ability  to  pay.  This  creates  serious  regional
distortions in the relative cost of living.

The  legislature finds that these distortions are greatly exacerbated by
the recent enactment of the federal Tax Cuts and Jobs Act of 2017, which
will limit the deductibility of state and local taxes  to  ten  thousand
dollars  beginning  in  the next fiscal year. Effectively, that cap will
eliminate one of the few mitigating factors against high property  taxes
for homeowners in certain regions of the state and create undue hardship
for  families throughout the state. Our children should not be penalized
based upon the geographic location of their home, nor should the respon-
sibility to pay for the educational system fall harder on those who  are
less able to bear the burden.

This  bill  provides  tax  relief  to the families who need it most, and
importantly does not increase the state's taxing  authority.  This  bill
provides  a  formula  to fund three years of tax relief in several tiers
determined by school districts' wealth, tax burdens, and other factors.

 
FISCAL IMPLICATIONS:

This bill is a revenue-neutral tax shift  and  does  not  authorize  any
additional  taxing authority. All funding for the Residential real prop-
erty tax relief act for public education will be  provided  by  existing
state resources.

 
EFFECTIVE DATE:
This  act  shall  take  effect immediately and shall apply to the school
years commencing on and after July 1, 2021; provided that the provisions
of this act shall expire and be deemed repealed on July 1, 2024.  Effec-
tive  immediately  the  addition, amendment and/or repeal of any rule or
regulation necessary for the implementation of this act on its effective
date are authorized to be made and completed on or before such effective
date.

2019-S1707A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1707--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2019
                                ___________
 
 Introduced  by Sens. BROOKS, MARTINEZ, SKOUFIS, THOMAS -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Education  --  recommitted to the Committee on Education in accordance
   with Senate Rule 6, sec. 8  --  committee  discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee

 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:
 
   Section  1.  This act shall be known and may be cited as the "New York
 state residential real property tax relief act for public education."
   § 2. Legislative findings. The  legislature  finds  that  the  current
 primary  and  secondary education funding system, which is based largely
 upon real property taxation, is antiquated and creates serious  dispari-
 ties  in  educational opportunity and inequities with regard to distrib-
 ution of the system's financial burden. The quality  of  education  that
 children  receive varies widely by geographic region, as does the oppor-
 tunity for children to participate in extracurricular  activities.    In
 addition, taxpayers throughout the state receive real property tax bills
 from  their  local  school  districts based on the value of their homes,
 which is subject to multiple factors beyond their control,  rather  than
 their financial ability to pay, creating serious regional distortions in
 the  relative  cost  of  living.  The legislature further finds that our
 children should not be penalized based upon the geographic  location  of
 their home, nor should financial support for the educational system fall
 more heavily on those who are less able to bear the burden. The legisla-
 ture  therefore  must  take  immediate action to provide relief to those
 areas most impacted by these disparities through the residential proper-
 ty tax relief aid determined through a residential property  tax  relief
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06906-04-0

 S. 1707--A                          2
 
 aid  formula.  The legislature further orders an education funding study
 to examine long-term funding alternatives  for  the  state  primary  and
 secondary  educational  system  that  allows all children throughout the
 state to receive the same educational opportunities.
   §  3.  Section  3602  of  the education law is amended by adding a new
 subdivision 42 to read as follows:
   42. NEW YORK STATE RESIDENTIAL PROPERTY  TAX  RELIEF  ACT  FOR  PUBLIC
 EDUCATION. A. ELIGIBILITY. (1) EACH SCHOOL DISTRICT SHALL BE ELIGIBLE TO
 RECEIVE  A NEW YORK STATE RESIDENTIAL PROPERTY TAX RELIEF ACT FOR PUBLIC
 EDUCATION AID APPORTIONMENT IN THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND
 TWENTY-TWO SCHOOL YEAR, WHICH SHALL EQUAL THE GREATER OF: (I) THE SUM OF
 THE TAX EQUALIZATION AID APPORTIONMENT, THE TAX LIMITATION  CEILING  AID
 APPORTIONMENT,  AND  THE  WEALTH ADJUSTED TAX RATE AID APPORTIONMENT; OR
 (II) THE RESIDENTIAL PROPERTY TAX LEVY REDUCTION APPORTIONMENT.
   (2) EACH SCHOOL DISTRICT SHALL BE ELIGIBLE TO RECEIVE A NEW YORK STATE
 RESIDENTIAL PROPERTY TAX RELIEF ACT FOR PUBLIC EDUCATION AID  APPORTION-
 MENT  IN  THE  TWO THOUSAND TWENTY-TWO--TWO THOUSAND TWENTY-THREE SCHOOL
 YEAR IN THE SAME AMOUNT AS IN THE BASE YEAR.
   (3) EACH SCHOOL DISTRICT SHALL BE ELIGIBLE TO RECEIVE A NEW YORK STATE
 RESIDENTIAL PROPERTY TAX RELIEF ACT FOR PUBLIC EDUCATION AID  APPORTION-
 MENT  IN  THE TWO THOUSAND TWENTY-THREE--TWO THOUSAND TWENTY-FOUR SCHOOL
 YEAR IN AN AMOUNT EQUAL TO THE NEW YORK STATE RESIDENTIAL  PROPERTY  TAX
 RELIEF  ACT  FOR  PUBLIC EDUCATION AID APPORTIONMENT IN THE TWO THOUSAND
 TWENTY-TWO--TWO THOUSAND TWENTY-THREE SCHOOL YEAR MULTIPLIED BY ONE  AND
 SEVEN HUNDRED SIXTY-NINE TEN-THOUSANDTHS (1.0769).
   B.  PURPOSE.  FUNDS  ALLOCATED  UNDER THIS SUBDIVISION SHALL BE SOLELY
 USED FOR THE PURPOSE OF REDUCING THE RESIDENTIAL  TAX  LEVY  DEFINED  IN
 SUBPARAGRAPH ONE OF PARAGRAPH A OF SUBDIVISION SIXTEEN OF THIS SECTION.
   C. TAX EQUALIZATION AID APPORTIONMENT. (1) SCHOOL DISTRICTS OTHER THAN
 DISTRICTS  WITHIN  A  CITY  WITH A POPULATION OF ONE HUNDRED TWENTY-FIVE
 THOUSAND OR MORE SHALL BE ELIGIBLE FOR A TAX EQUALIZATION AID APPORTION-
 MENT IF:  (I) THE COMBINED WEALTH RATIO COMPUTED PURSUANT TO PARAGRAPH C
 OF SUBDIVISION THREE OF THIS SECTION IS LESS  THAN  ONE;  AND  (II)  THE
 EXPENSE  PER PUPIL DEFINED PURSUANT TO PARAGRAPH F OF SUBDIVISION ONE OF
 THIS SECTION IS GREATER THAN THE STATEWIDE AVERAGE  EXPENSE  PER  PUPIL.
 FOR  THE  TWO  THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR,
 FOR THE PURPOSE OF COMPUTING  AID  PURSUANT  TO  THIS  SUBDIVISION,  THE
 STATEWIDE  AVERAGE  EXPENSE  PER  PUPIL  SHALL  BE  SIXTEEN THOUSAND TWO
 HUNDRED FIFTY DOLLARS.
   (2) THE TAX EQUALIZATION FORMULA FACTOR SHALL BE EQUAL TO THE POSITIVE
 DIFFERENCE OF THE QUOTIENT ARRIVED AT WHEN DIVIDING THE APPROVED OPERAT-
 ING EXPENSE DEFINED PURSUANT TO PARAGRAPH T OF SUBDIVISION ONE  OF  THIS
 SECTION  BY TOTAL AIDABLE PUPIL UNITS DEFINED PURSUANT TO PARAGRAPH E OF
 SUBDIVISION ONE OF THIS SECTION  MINUS  THE  QUOTIENT  ARRIVED  AT  WHEN
 DIVIDING  THE  TOTAL REAL PROPERTY TAX LEVY BY TOTAL AIDABLE PUPIL UNITS
 DEFINED PURSUANT TO PARAGRAPH E OF SUBDIVISION ONE OF THIS SECTION.
   (3) FOR ELIGIBLE SCHOOL DISTRICTS, THE TAX  EQUALIZATION  FORMULA  AID
 APPORTIONMENT SHALL BE EQUAL TO THE PRODUCT OF: (I) THE TAX EQUALIZATION
 FORMULA  FACTOR  MULTIPLIED BY (II) THE TOTAL AIDABLE PUPIL UNITS MULTI-
 PLIED BY (III) THE REGIONAL COST INDEX DEFINED PURSUANT TO  PARAGRAPH  A
 OF  SUBDIVISION  FOUR  OF  THIS  SECTION  MULTIPLIED BY (IV) TWENTY-FIVE
 HUNDREDTHS (.25).
   D. TAX LIMITATION CEILING  AID  APPORTIONMENT.  (1)  SCHOOL  DISTRICTS
 OTHER  THAN  DISTRICTS  WITHIN  A  CITY WITH A POPULATION OF ONE HUNDRED
 TWENTY-FIVE THOUSAND OR MORE SHALL BE  ELIGIBLE  FOR  A  TAX  LIMITATION
 CEILING AID APPORTIONMENT IF: (I) THE COMBINED WEALTH RATIO IS LESS THAN

 S. 1707--A                          3
 
 TWO  AND FIVE-TENTHS (2.5); AND (II) THE TAX EFFORT RATIO DEFINED PURSU-
 ANT TO SUBPARAGRAPH THREE OF PARAGRAPH A OF SUBDIVISION SIXTEEN OF  THIS
 SECTION  IS GREATER THAN THE STATEWIDE AVERAGE TAX EFFORT RATIO. FOR THE
 TWO  THOUSAND  TWENTY-ONE--TWO  THOUSAND TWENTY-TWO SCHOOL YEAR, FOR THE
 PURPOSE OF COMPUTING AID PURSUANT TO THIS SUBDIVISION, THE STATEWIDE TAX
 AVERAGE EFFORT RATIO  SHALL  BE  TWO  THOUSAND  EIGHT  HUNDRED  FOURTEEN
 HUNDRED THOUSANDTHS (0.02814).
   (2)  FOR  PURPOSES OF THIS SUBDIVISION, THE TAX CEILING SHALL BE EQUAL
 TO THE PRODUCT OF (I) TWENTY-FIVE DOLLARS ($25) MULTIPLIED BY  (II)  THE
 QUOTIENT  ARRIVED  AT  WHEN  DIVIDING  THE TAX EFFORT RATIO BY THE STATE
 AVERAGE TAX EFFORT RATIO.
   (3) THE CEILING FORMULA FACTOR SHALL BE EQUAL TO:
   (I) THIRTY-THREE DOLLARS AND ELEVEN  CENTS  ($33.11)  FOR  ANY  SCHOOL
 DISTRICT WITH A TAX CEILING GREATER THAN OR EQUAL TO TWENTY-FIVE DOLLARS
 BUT LESS THAN FORTY DOLLARS;
   (II)  FORTY-FIVE  DOLLARS  AND  SIXTY  CENTS  ($45.60)  FOR ANY SCHOOL
 DISTRICT WITH A TAX CEILING GREATER THAN OR EQUAL TO FORTY  DOLLARS  BUT
 LESS THAN SIXTY DOLLARS; AND
   (III)  FORTY-SEVEN DOLLARS AND FIFTY-TWO CENTS ($47.52) FOR ANY SCHOOL
 DISTRICT WITH A TAX CEILING GREATER THAN OR EQUAL TO SIXTY DOLLARS.
   (4) FOR ELIGIBLE SCHOOL DISTRICTS, TAX LIMITATION CEILING  AID  APPOR-
 TIONMENT  SHALL  BE  EQUAL  TO  THE  PRODUCT OF: (I) THE CEILING FORMULA
 FACTOR, MULTIPLIED BY (II) THE REGIONAL COST INDEX, MULTIPLIED BY  (III)
 TOTAL AIDABLE PUPIL UNITS.
   E.  WEALTH ADJUSTED AID APPORTIONMENT. (1) SCHOOL DISTRICTS OTHER THAN
 DISTRICTS WITHIN A CITY WITH A POPULATION  OF  ONE  HUNDRED  TWENTY-FIVE
 THOUSAND  OR MORE SHALL BE ELIGIBLE FOR A WEALTH ADJUSTED AID APPORTION-
 MENT IF:  (I) THE COMBINED WEALTH RATIO IS LESS THAN TWO AND FIVE TENTHS
 (2.5); AND (II) THE QUOTIENT ARRIVED AT WHEN DIVIDING TOTAL GENERAL FUND
 EXPENDITURE BY THE TOTAL AIDABLE PUPIL UNITS EXPRESSED PER ONE  THOUSAND
 DOLLARS  IS  GREATER THAN THE STATEWIDE AVERAGE OF SUCH CALCULATION. FOR
 THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO  SCHOOL  YEAR,  FOR
 THE PURPOSE OF COMPUTING AID PURSUANT TO THIS SUBDIVISION, THE STATEWIDE
 TOTAL  GENERAL  FUND  EXPENDITURE  DIVIDED  BY TOTAL AIDABLE PUPIL UNITS
 EXPRESSED PER ONE THOUSAND DOLLARS SHALL  BE  TWENTY  DOLLARS  AND  FIVE
 CENTS.
   (2)  FOR  ELIGIBLE  SCHOOL DISTRICTS, THE WEALTH ADJUSTED TAX RATE AID
 APPORTIONMENT SHALL BE EQUAL  TO  THE  PRODUCT  OF:  (I)  SEVEN  HUNDRED
 DOLLARS  ($700) MULTIPLIED BY (II) TOTAL AIDABLE PUPILS UNITS MULTIPLIED
 BY (III) THE STATE SHARING RATIO COMPUTED PURSUANT  TO  PARAGRAPH  G  OF
 SUBDIVISION THREE OF THIS SECTION.
   F.  "RESIDENTIAL  REAL PROPERTY TAX LEVY REDUCTION APPORTIONMENT." (1)
 SCHOOL DISTRICTS OTHER THAN DISTRICTS WITH A CITY WITH A  POPULATION  OF
 ONE HUNDRED TWENTY-FIVE THOUSAND OR MORE, SHALL BE ELIGIBLE FOR RESIDEN-
 TIAL REAL PROPERTY TAX LEVY IF: (I) THE RESIDENTIAL TAX LEVY CALCULATION
 IS  EQUAL TO OR GREATER THAN FIFTY PERCENT; AND (II) THE COMBINED WEALTH
 RATIO IS LESS THAN TWO AND FIVE-TENTHS (2.5).
   (2) "RESIDENTIAL  TAX  LEVY  CALCULATION"  SHALL  EQUAL  THE  QUOTIENT
 ARRIVED  AT WHEN DIVIDING THE RESIDENTIAL REAL PROPERTY TAX LEVY DEFINED
 PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH A OF  SUBDIVISION  SIXTEEN  OF
 THIS  SECTION  DIVIDED  BY  THE  TOTAL  ACTUAL EXPENDITURES FOR THE YEAR
 COMMENCING IN THE CALENDAR YEAR ONE YEAR PRIOR TO THE CALENDAR  YEAR  IN
 WHICH THE BASE YEAR BEGAN.
   (3)  FOR ELIGIBLE SCHOOL DISTRICTS, THE "RESIDENTIAL REAL PROPERTY TAX
 LEVY REDUCTION APPORTIONMENT" SHALL MEAN THE PRODUCT OF: (I)  THE  POSI-
 TIVE  DIFFERENCE,  IF  ANY, BETWEEN THE RESIDENTIAL TAX LEVY CALCULATION

 S. 1707--A                          4
 
 DEFINED PURSUANT TO THIS SUBPARAGRAPH MINUS FIFTY PERCENT MULTIPLIED  BY
 (II) THE RESIDENTIAL REAL PROPERTY TAX LEVY.
   G.  METHOD  OF  PAYMENT. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO
 THE CONTRARY, THE NEW YORK STATE RESIDENTIAL PROPERTY TAX RELIEF ACT FOR
 PUBLIC EDUCATION AID  SHALL  BE  PAID  PURSUANT  TO  SECTION  THIRTY-SIX
 HUNDRED NINE-I OF THIS PART.
   H.  DEFINITION.  AS USED IN THIS SUBDIVISION, "TOTAL REAL PROPERTY TAX
 LEVY" SHALL MEAN THE TOTAL REAL  PROPERTY  TAX  LEVY  SPECIFIED  IN  THE
 SCHOOL  DISTRICT BUDGET FOR THE YEAR COMMENCING IN THE CALENDAR YEAR TWO
 YEARS PRIOR TO THE CALENDAR YEAR IN WHICH THE BASE YEAR BEGAN. THE FINAL
 UPDATE OF SUCH DATA SHALL BE REPORTED BY THE  COMMISSIONER  OF  TAXATION
 AND  FINANCE TO THE COMMISSIONER BY FEBRUARY FIFTEENTH OF THE BASE YEAR.
 THE COMMISSIONER OF TAXATION AND  FINANCE  SHALL  ADOPT  REGULATIONS  AS
 APPROPRIATE  TO  ASSURE  THE  APPROPRIATE COLLECTION, CLASSIFICATION AND
 REPORTING OF SUCH DATA FOR THE PURPOSES  OF  PAYING  STATE  AID  TO  THE
 SCHOOLS.
   §  4.  The opening paragraph of subdivision 1 of section 3609-a of the
 education law, as amended by section 32 of part B of chapter 57  of  the
 laws of 2007, is amended to read as follows:
   The GSPS appropriation shall be used to support payments made pursuant
 to  this  section,  plus  apportionments  made pursuant to section seven
 hundred one,  seven  hundred  eleven,  seven  hundred  fifty-one,  seven
 hundred  fifty-three, thirty-two hundred two, thirty-six hundred nine-b,
 thirty-six hundred forty-one and forty-four hundred five of  this  chap-
 ter, any other applicable allocations made pursuant to this chapter, but
 not paid pursuant to the schedule prescribed by this section or sections
 thirty-six  hundred  nine-b,  thirty-six hundred nine-d [or], thirty-six
 hundred nine-f OR THIRTY-SIX HUNDRED NINE-I of this [article] PART; plus
 any unconsolidated law provisions which apply to  programs  funded  from
 such appropriation; plus any sums paid out upon audit of the state comp-
 troller  as  final  adjustments of apportionments originally claimed and
 payable pursuant to this subdivision in prior school  years;  plus  sums
 paid  out  as  prior  year  adjustments,  to the extent an allowance was
 included in such appropriation  for  such  purpose.  Any  apportionments
 provided  by  this chapter shall be paid in accordance with this section
 unless specifically exempted.
   § 5. The education law is amended by adding a new  section  3609-i  to
 read as follows:
   §  3609-I. MONEYS APPORTIONED TO SCHOOL DISTRICTS FOR REIMBURSEMENT OF
 APPORTIONMENTS PURSUANT TO THE NEW YORK STATE RESIDENTIAL  PROPERTY  TAX
 RELIEF  ACT  FOR  PUBLIC  EDUCATION. 1. AS USED IN THIS SECTION, "SCHOOL
 DISTRICT" SHALL MEAN A PUBLIC SCHOOL DISTRICT ELIGIBLE FOR AN APPORTION-
 MENT OF AID UNDER SUBDIVISION FOUR OF SECTION THIRTY-SIX HUNDRED TWO  OF
 THIS ARTICLE.
   2.  MONEYS APPORTIONED TO SCHOOL DISTRICTS FOR REIMBURSEMENT OF APPOR-
 TIONMENTS PURSUANT TO THE NEW YORK STATE RESIDENTIAL PROPERTY TAX RELIEF
 ACT FOR PUBLIC EDUCATION PURSUANT TO SUBDIVISION  FORTY-TWO  OF  SECTION
 THIRTY-SIX HUNDRED TWO OF THIS PART SHALL BE DISBURSED AS FOLLOWS:
   A.  ON  OR  AFTER  THE FIRST BUSINESS DAY OF JULY OF EACH SCHOOL YEAR,
 COMMENCING JULY FIRST, TWO THOUSAND TWENTY-ONE, A SCHOOL DISTRICT  SHALL
 BE  PAID  AN  AMOUNT  EQUAL  TO FIFTY PERCENT OF THE PAYMENTS ON OCTOBER
 FIRST OF THE CURRENT SCHOOL YEAR.
   B. THE REMAINING BALANCE SHALL BE PAID AFTER FEBRUARY FIRST,  PROVIDED
 THAT  THE  AMOUNTS PAID ON OR BEFORE FEBRUARY FIRST SHALL NOT BE SUBJECT
 TO RECALCULATION.

 S. 1707--A                          5
 
   C. NO PAYMENT MAY BE MADE  PURSUANT  TO  THIS  SUBDIVISION  UNTIL  THE
 AMOUNT  FOR  EACH  SCHOOL  DISTRICT  IS CERTIFIED BY THE COMMISSIONER OF
 TAXATION AND FINANCE AND TRANSMITTED TO THE COMMISSIONER.  SUCH  CERTIF-
 ICATION  SHALL  BE  MADE  ON OR BEFORE JANUARY FIRST SO AS TO FACILITATE
 PAYMENTS TO BE MADE PURSUANT TO THIS SECTION.
   3. MONEYS PAID PURSUANT TO THIS SECTION SHALL BE PAYABLE TO THE TREAS-
 URER  OF EACH CITY SCHOOL DISTRICT, AND THE TREASURER OF EACH UNION FREE
 SCHOOL DISTRICT AND OF EACH CENTRAL SCHOOL DISTRICT AND  OF  EACH  OTHER
 SCHOOL  DISTRICT, IF THERE BE A TREASURER, OTHERWISE TO THE COLLECTOR OR
 OTHER DISBURSING OFFICER OF SUCH  DISTRICT,  WHO  SHALL  APPLY  FOR  AND
 RECEIVE THE SAME AS SOON AS PAYABLE.
   4.  ANY PAYMENT TO A SCHOOL DISTRICT PURSUANT TO THIS SECTION SHALL BE
 GENERAL RECEIPTS OF THE DISTRICT  AND  SHALL  BE  USED  SOLELY  FOR  THE
 REDUCTION OF THE RESIDENTIAL TAX LEVY.
   5.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  LAW  TO  THE CONTRARY,
 PAYMENTS MADE TO SCHOOL DISTRICTS UNDER THIS SECTION SHALL BE CONSIDERED
 GENERAL AID PAYMENTS MADE PURSUANT TO SECTION THIRTY-SIX HUNDRED  NINE-A
 OF THIS PART.
   6.  IT  IS THE INTENT OF THE GOVERNOR TO SUBMIT AND OF THE LEGISLATURE
 TO ENACT FOR EACH FISCAL YEAR AFTER  THE  TWO  THOUSAND  TWENTY-ONE--TWO
 THOUSAND  TWENTY-TWO  FISCAL  YEAR IN AN ANNUAL BUDGET BILL AN APPROPRI-
 ATION IN THE AMOUNT TO BE PAID TO SCHOOL DISTRICTS PURSUANT TO  SUBDIVI-
 SION FORTY-TWO OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART.
   §  6.  Paragraph  a  of subdivision 7 of section 1608 of the education
 law, as amended by chapter 514 of the laws of 2016, is amended  to  read
 as follows:
   a.  Each  year,  commencing with the proposed budget for the two thou-
 sand--two thousand one school year, the trustee  or  board  of  trustees
 shall prepare a property tax report card, pursuant to regulations of the
 commissioner, and shall make it publicly available by transmitting it to
 local  newspapers  of general circulation, appending it to copies of the
 proposed budget made publicly available as required by  law,  making  it
 available  for distribution at the annual meeting, and otherwise dissem-
 inating it as required by  the  commissioner.  Such  report  card  shall
 include: (i) the amount of total spending and total estimated school tax
 levy  that  would  result  from  adoption of the proposed budget and the
 percentage increase or decrease in total spending and total  school  tax
 levy  from the school district budget for the preceding school year; and
 (ii) the district's tax levy limit determined pursuant  to  section  two
 thousand  twenty-three-a  of  this  title,  and the estimated school tax
 levy, excluding any levy necessary to support the expenditures  pursuant
 to  subparagraphs  (i) through (iv) of paragraph i of subdivision two of
 section two thousand twenty-three-a of this  title,  that  would  result
 from adoption of the proposed budget; and (iii) the projected enrollment
 growth  for  the  school  year for which the budget is prepared, and the
 percentage change in enrollment from the previous  year;  and  (iv)  the
 percentage increase in the consumer price index, as defined in paragraph
 c  of  this subdivision; and (v) the projected amount of the unappropri-
 ated unreserved fund balance that will be retained if the proposed budg-
 et is adopted, the projected amount of the reserved  fund  balance,  the
 projected amount of the appropriated fund balance, the percentage of the
 proposed  budget that the unappropriated unreserved fund balance repres-
 ents, the actual unappropriated unreserved fund balance retained in  the
 school district budget for the preceding school year, and the percentage
 of  the  school  district  budget for the preceding school year that the
 actual unappropriated unreserved fund balance represents[, and a  sched-

 S. 1707--A                          6

 ule  of  reserve  funds,  setting forth the name of each reserve fund, a
 description of its purpose, the balance as of the  close  of  the  third
 quarter of the current school district fiscal year and a brief statement
 explaining any plans for the use of each such reserve fund for the ensu-
 ing  fiscal year]; AND (VI) THE AMOUNT OF THE NEW YORK STATE RESIDENTIAL
 PROPERTY TAX RELIEF ACT FOR PUBLIC EDUCATION AMOUNT USED TO  REDUCE  THE
 RESIDENTIAL TAX LEVY FOR THE ENSUING FISCAL YEAR.
   §  7.  Paragraph  a  of subdivision 7 of section 1716 of the education
 law, as amended by chapter 514 of the laws of 2016, is amended  to  read
 as follows:
   a.  Each  year,  commencing with the proposed budget for the two thou-
 sand--two thousand one school year, the board of education shall prepare
 a property tax report card, pursuant to regulations of the commissioner,
 and shall make it publicly available by transmitting it to local newspa-
 pers of general circulation, appending it  to  copies  of  the  proposed
 budget  made  publicly available as required by law, making it available
 for distribution at the annual meeting, and otherwise  disseminating  it
 as required by the commissioner. Such report card shall include: (i) the
 amount  of total spending and total estimated school tax levy that would
 result from adoption of the proposed budget and the percentage  increase
 or  decrease in total spending and total school tax levy from the school
 district budget for the preceding school year; and (ii)  the  district's
 tax   levy   limit   determined   pursuant   to   section  two  thousand
 twenty-three-a of this title, and the estimated school tax levy, exclud-
 ing any levy necessary to support the expenditures pursuant to  subpara-
 graphs (i) through (iv) of paragraph i of subdivision two of section two
 thousand  twenty-three-a  of this title, that would result from adoption
 of the proposed budget; and (iii) the projected  enrollment  growth  for
 the  school  year  for  which the budget is prepared, and the percentage
 change in enrollment from the previous year;  and  (iv)  the  percentage
 increase  in the consumer price index, as defined in paragraph c of this
 subdivision; and (v) the projected amount of  the  unappropriated  unre-
 served  fund  balance  that  will  be retained if the proposed budget is
 adopted, the projected amount of the reserved fund balance, the project-
 ed amount of the  appropriated  fund  balance,  the  percentage  of  the
 proposed  budget that the unappropriated unreserved fund balance repres-
 ents, the actual unappropriated unreserved fund balance retained in  the
 school  district  budget  for  the preceding school year[, a schedule of
 reserve  funds,  setting  forth  the  name  of  each  reserve  fund,   a
 description  of  its  purpose,  the balance as of the close of the third
 quarter of the current school district fiscal year and a brief statement
 explaining any plans for the use of each such reserve fund for the ensu-
 ing fiscal year and the percentage of the school district budget for the
 preceding school year that the  actual  unappropriated  unreserved  fund
 balance  represents]; AND (VI) THE AMOUNT OF THE NEW YORK STATE RESIDEN-
 TIAL PROPERTY TAX RELIEF ACT FOR PUBLIC EDUCATION AMOUNT USED TO  REDUCE
 THE RESIDENTIAL TAX LEVY FOR THE ENSUING FISCAL YEAR.
   §  8. This act shall take effect immediately and shall apply to school
 years commencing on and after July 1, 2021; provided that the provisions
 of this act shall expire and be deemed repealed on July 1, 2024.  Effec-
 tive immediately, the addition, amendment and/or repeal of any  rule  or
 regulation necessary for the implementation of this act on its effective
 date are authorized to be made and completed on or before such effective
 date.

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Senate Bill S1707

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Archive: Last Bill Status - In Senate Committee Education Committee

Bill Amendments

co-Sponsors

2019-S1707 - Details

2019-S1707 - Summary

2019-S1707 - Sponsor Memo

2019-S1707 - Bill Text download pdf

co-Sponsors

2019-S1707A (ACTIVE) - Details

2019-S1707A (ACTIVE) - Summary

2019-S1707A (ACTIVE) - Sponsor Memo

2019-S1707A (ACTIVE) - Bill Text download pdf

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