NY State Senate Bill 2021-S5717

Senate Bill S5717

2021-2022 Legislative Session

Relates to limitations upon school district tax levies

download bill text pdf

Archive: Last Bill Status - In Senate Committee Education Committee

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to education
Mar 16, 2021	referred to education

2021-S5717 (ACTIVE) - Details

See Assembly Version of this Bill:: A6081
Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §2023-a, Ed L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A9792
2017-2018: A226
2019-2020: A6533
2023-2024: S6753, A4687

2021-S5717 (ACTIVE) - Summary

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

2021-S5717 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5717

SPONSOR: KAPLAN
 
TITLE OF BILL:

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

 
PURPOSE:

The purpose of this bill is to ensure that no school district has a
negative tax cap.

 
SUMMARY OF PROVISIONS:

Section 1: Paragraph b of subdivision 3 of section 2023-a of the educa-
tion law is amended. Section 2: Provides for the effective date.

 
JUSTIFICATION:

Through the years of the property tax cap, dozens of school districts
have faced a negative tax cap. Due to the complex nature of the formula
and the number of factors used, school districts can be capped at a tax
levy that is actually less than the school district's tax levy in the
prior year, resulting in a "negative tax cap." This means that a school
district would have to cut their tax levy and any programs and services
those funds support or hope for a supermajority (60%) approval of their
budget by voters to simply keep their tax levy flat or at zero percent.

The prospect of a negative tax cap acts as a disincentive to many school
districts when it comes to finding budgetary efficiencies. For example,
if a district pre-pays debt related to construction of school buildings,
those savings would have a harmful effect on the district's tax cap,
potentially resulting in a negative cap.  The current process is also
confusing to voters. The tax cap has been advertised as a limit on the
annual growth in property taxes, with a supermajority needed to increase
property taxes beyond that level.  School districts often struggle to
explain to voters exactly why that same supermajority might be needed to
keep taxes flat or even decrease taxes by an amount less than what a
negative tax cap would allow. Adding to the confusion is that voter
approval for, such budgets is only necessary for school districts.
Localities such as towns and counties approve their own budgets, includ-
ing tax cap overrides.

 
LEGISLATIVE HISTORY:

Formerly A-226 of 2018, died in the Assembly Education Committee.
Formerly A-9792 of 2015-2016, died in the Assembly Education Committee.

 
FISCAL IMPLICATIONS:

This act has no fiscal implications to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S5717 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5717
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 16, 2021
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Education
 
 AN ACT to amend the education  law,  in  relation  to  limitations  upon
   school district tax levies
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph b of subdivision  3  of  section  2023-a  of  the
 education law, as added by section 2 of part A of chapter 97 of the laws
 of 2011, is amended to read as follows:
   b.  PROVIDED,  HOWEVER,  IF THE DIFFERENCE BETWEEN THE TOTAL AMOUNT OF
 TAXES LEVIED FOR THE PRIOR YEAR LESS THE TAX LEVY  LIMIT  RESULTS  IN  A
 NEGATIVE  NUMBER,  THE  TAX  LEVY LIMIT SHALL BE EQUAL TO A ZERO PERCENT
 INCREASE OVER THE PRIOR YEAR TAX LEVY.
   C. On or before March first of each year, any school district  subject
 to the provisions of this section shall submit to the state comptroller,
 the  commissioner,  and  the  commissioner of taxation and finance, in a
 form and manner prescribed by the  state  comptroller,  any  information
 necessary  for  the  calculation  of  the tax levy limit; and the school
 district's determination of the tax levy limit pursuant to this  section
 shall  be  subject to review by the commissioner and the commissioner of
 taxation and finance.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09619-01-1

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