NY State Assembly Bill 2021-A939B

Assembly Bill A939B

2021-2022 Legislative Session

Provides a New York state residential property tax relief act for public education aid apportionment for certain school years

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Archive: Last Bill Status - In Assembly 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 11, 2022	print number 939b
Feb 11, 2022	amend and recommit to education
Jan 05, 2022	referred to education
Jan 29, 2021	print number 939a
Jan 29, 2021	amend and recommit to education
Jan 06, 2021	referred to education

Bill Amendments

Original

B (Active)

co-Sponsors

2021-A939 - Details

See Senate Version of this Bill:: S1388
Current Committee:: Assembly 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
2019-2020: A9869, S1707

2021-A939 - Summary

Provides a New York state residential property tax relief act for public education aid apportionment for certain school years; provides for the repeal of such provisions upon the expiration thereof.

2021-A939 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    939
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by M. of A. JEAN-PIERRE, THIELE -- read once and referred 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.
                                                            LBD03525-01-1

 A. 939                              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--TWO THOUSAND
 TWENTY-THREE 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-THREE--TWO THOUSAND  TWENTY-FOUR  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-FOUR--TWO  THOUSAND  TWENTY-FIVE  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-THREE--TWO THOUSAND TWENTY-FOUR 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--TWO THOUSAND TWENTY-THREE 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
 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

 A. 939                              3
 
 SECTION  IS GREATER THAN THE STATEWIDE AVERAGE TAX EFFORT RATIO. FOR THE
 TWO THOUSAND TWENTY-TWO--TWO THOUSAND TWENTY-THREE 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-TWO--TWO THOUSAND TWENTY-THREE 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
 DEFINED  PURSUANT TO THIS SUBPARAGRAPH MINUS FIFTY PERCENT MULTIPLIED BY
 (II) THE RESIDENTIAL REAL PROPERTY TAX LEVY.

 A. 939                              4

   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-TWO, 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.
   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-

 A. 939                              5

 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--TWO
 THOUSAND  TWENTY-THREE 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-
 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

 A. 939                              6

 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, 2022; provided that the provisions
 of this act shall expire and be deemed repealed on July 1, 2025.  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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2021-A939A - Details

See Senate Version of this Bill:: S1388
Current Committee:: Assembly 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
2019-2020: A9869, S1707

2021-A939A - Summary

Provides a New York state residential property tax relief act for public education aid apportionment for certain school years; provides for the repeal of such provisions upon the expiration thereof.

2021-A939A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  939--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by M. of A. JEAN-PIERRE, THIELE -- read once and referred to
   the Committee on Education  --  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
 aid  formula.  The legislature further orders an education funding study
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD03525-03-1

 A. 939--A                           2
 
 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-TWO--TWO THOUSAND
 TWENTY-THREE SCHOOL YEAR, WHICH SHALL EQUAL 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-THREE--TWO THOUSAND TWENTY-FOUR 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-FOUR--TWO THOUSAND TWENTY-FIVE 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-THREE--TWO THOUSAND TWENTY-FOUR 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. "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
 DEFINED  PURSUANT TO THIS SUBPARAGRAPH MINUS FIFTY PERCENT MULTIPLIED BY
 (II) THE RESIDENTIAL REAL PROPERTY TAX LEVY.
   D. 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.
   E. 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.

 A. 939--A                           3
 
   § 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-TWO, 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.
   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

 A. 939--A                           4
 
 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--TWO
 THOUSAND  TWENTY-THREE 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-
 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

 A. 939--A                           5
 
 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, 2022; provided that the provisions
 of this act shall expire and be deemed repealed on July 1, 2025.  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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2021-A939B (ACTIVE) - Details

See Senate Version of this Bill:: S1388
Current Committee:: Assembly 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
2019-2020: A9869, S1707

2021-A939B (ACTIVE) - Summary

Provides a New York state residential property tax relief act for public education aid apportionment for certain school years; provides for the repeal of such provisions upon the expiration thereof.

2021-A939B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  939--B
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced by M. of A. JEAN-PIERRE, THIELE, ENGLEBRIGHT, STERN, GRIFFIN,
   DeSTEFANO,  SEAWRIGHT  --  read  once and referred to the Committee on
   Education -- committee discharged, bill amended, ordered reprinted  as
   amended  and  recommitted  to  said  committee  --  recommitted to the
   Committee on Education in accordance with Assembly Rule 3, sec.  2  --
   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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03525-05-2
 A. 939--B                           2
 
 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
 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--TWO THOUSAND
 TWENTY-THREE SCHOOL YEAR, WHICH SHALL EQUAL 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-THREE--TWO THOUSAND  TWENTY-FOUR  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-FOUR--TWO  THOUSAND  TWENTY-FIVE  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-THREE--TWO THOUSAND TWENTY-FOUR 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.  "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; (II) THE COMBINED WEALTH
 RATIO IS LESS THAN TWO AND FIVE-TENTHS (2.5); AND (III) SUCH DISTRICT IS
 IN COMPLIANCE WITH THE TAX  LEVY  LIMIT  IN  THE  MANNER  PRESCRIBED  BY
 SECTION THREE-C OF THE GENERAL MUNICIPAL LAW.
   (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
 DEFINED  PURSUANT TO THIS SUBPARAGRAPH MINUS FIFTY PERCENT MULTIPLIED BY
 (II) THE RESIDENTIAL REAL PROPERTY TAX LEVY.
   D. 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.
   E. 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
 A. 939--B                           3
 
 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 PART.
   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-TWO, 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.
   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.
 A. 939--B                           4
 
   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. ANY PAYMENT TO A SCHOOL DISTRICT PURSUANT TO THIS SECTION SHALL  BE
 MADE  IN  COMPLIANCE WITH THE TAX LEVY LIMIT IN THE MANNER PRESCRIBED BY
 SECTION THREE-C OF THE GENERAL MUNICIPAL LAW.
   6. 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.
   7. 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--TWO
 THOUSAND TWENTY-THREE 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-
 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.
 A. 939--B                           5
 
   § 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, 2022; provided that the provisions
 of this act shall expire and be deemed repealed July 1, 2025.  Effective
 immediately, the addition, amendment and/or repeal of any rule or  regu-
 lation  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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Assembly Bill A939B

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Sponsored By

JEAN-PIERRE

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

Fred Thiele

2021-A939 - Details

2021-A939 - Summary

2021-A939 - Bill Text download pdf

co-Sponsors

Fred Thiele

Steven Englebright

Steve Stern

Judy Griffin

2021-A939A - Details

2021-A939A - Summary

2021-A939A - Bill Text download pdf

co-Sponsors

Fred Thiele

Steven Englebright

Steve Stern

Judy Griffin

2021-A939B (ACTIVE) - Details

2021-A939B (ACTIVE) - Summary

2021-A939B (ACTIVE) - Bill Text download pdf

Comments