NY State Senate Bill 2023-S2520

Current 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 03, 2024	referred to education
Jan 23, 2023	referred to education

2023-S2520 (ACTIVE) - Details

See Assembly Version of this Bill:: A2910
Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §3613, Ed L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3531, A3027
2019-2020: S3720, A5513
2021-2022: S5174, A5804

2023-S2520 (ACTIVE) - Summary

Increases the phase-in period, in which the boards of education or trustees of school districts participating in a proposed reorganization may opt to have the tax impact of such reorganization, from 10 to 20 years.

2023-S2520 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2520

SPONSOR: PALUMBO
 
TITLE OF BILL:

An act to amend the education law, in relation to school district reor-
ganizations and real property tax rates

 
PURPOSE:

To increase from 10 to 20 years the phase-in period in which the boards
of education or trustees of school districts participating in a proposed
reorganization may opt to have the tax impact of such reorganization
calculated.

 
SUMMARY OF PROVISIONS:

Section 1. Amends section 3613 of the education law as added by section
6 of part A Chapter  56 of the Laws of 2014 relating to school district
reorganizations and real property tax rate.

Section 2. Sets forth the effective date.

 
JUSTIFICATION:

Consolidations and mergers are economically beneficial for school
districts and by extension the taxpayers. As such, provisions were
included in the enacted 2014-15 State Budget that added a new section
3613 to the education law relating to school district reorganizations
and real property tax rates. Pursuant to these provisions, merging or
reorganizing school districts may opt to freeze the tax rates for the
first year at existing levels and any changes in subsequent years are
phased in gradually, for a full period of up to ten years.

In some cases, however, the 10-year glide path is too short to avoid an
immediate tax increase. A longer term of up to 20years is necessary to
provide more time to mitigate tax differentials to lessen or reduce the
immediate tax impact. A 20-year glide path option will make the prospect
of voting for a school district merger or reorganization more attractive
to taxpayers. In the spirit of cost savings and efficiency, this bill
would make it easier for more school districts to combine and generate
savings which in the long term will be passed down to the taxpayers.

 
LEGISLATIVE HISTORY:

2022 S.5174/A.5804;

2020 S.3720A/A.5513A; 2017-18 S.3531/A.3027.

 
FISCAL IMPLICATIONS:

TBD.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S2520 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2520
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2023
                                ___________
 
 Introduced  by  Sen. PALUMBO -- 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 school district  reor-
   ganizations and real property tax rates
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3613 of the education law, as added by section 6 of
 part A of chapter 56 of the laws of 2014, is amended to read as follows:
   § 3613. School district reorganizations and real property  tax  rates.
 1.   When two or more school districts propose to reorganize pursuant to
 sections  fifteen  hundred  eleven  through  fifteen  hundred  thirteen,
 fifteen  hundred  twenty-four,  fifteen  hundred  twenty-six,  seventeen
 hundred five, or eighteen hundred one through eighteen hundred three  of
 this  chapter, and under the law that would otherwise be applicable, the
 reorganization would have an impact upon the school tax rates within the
 areas served by the school districts that existed prior to the  reorgan-
 ization, notwithstanding any other provision of law to the contrary, the
 boards  of education or trustees of all the school districts participat-
 ing in the proposed reorganization may opt to have that impact  deferred
 for  a  one-year  period and/or phased-in over a period as may be deter-
 mined by the boards of education or trustees of all participating school
 districts in the manner prescribed by this section but which  shall  not
 exceed  a  [ten-year]  TWENTY-YEAR  period. To exercise such option, the
 boards of education or trustees of all participating  school  districts,
 after  conducting  a  public  hearing,  may  adopt a resolution at least
 forty-five days prior to the special district meeting at which the reor-
 ganization vote will be held, to defer and/or  phase-in  the  impact  as
 provided  herein.  If  the board of education or trustees of any partic-
 ipating school district does not approve such a resolution opting for  a
 common phase-in period, the provisions of this section shall not apply.
   2.  During the one-year deferral period, the tax rate for each portion
 of the school district shall be calculated in the following manner:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03788-01-3
 S. 2520                             2
 
   (a) Determine the assessed value tax rate that applied for the  school
 year  immediately  preceding the school year in which the reorganization
 took effect.
   (b)  Multiply  that  assessed value tax rate by the state equalization
 rate applicable to the portion for the school year immediately preceding
 the school year in which the reorganization took effect.
   (c) Divide the product so determined by the  state  equalization  rate
 applicable  to  the portion for the first school year of the reorganized
 school district. The quotient is the assessed value  tax  rate  for  the
 portion  for  that  school  year.  Provided, that if the sum of the real
 property tax levies in all of the portions in the school district, using
 the assessed value tax rates  computed  pursuant  to  this  subdivision,
 would  yield  a  real property tax levy that is above or below the total
 real property tax levy specified in the school district budget  for  the
 current school year, the assessed value tax rates shall all be decreased
 or  increased proportionately so as to yield the specified real property
 tax levy amount.
   3. During each year of a phase-in period, whose duration up  to  [ten]
 TWENTY  years  shall  have been determined by the boards of education or
 trustees of the constituent school districts,  the  tax  rate  for  each
 portion  of  the  reorganized school district shall be calculated in the
 following manner:
   (a) Determine the assessed value tax rate that applied for the  school
 year  immediately  preceding the school year in which the reorganization
 took effect.
   (b) Multiply that assessed value tax rate by  the  state  equalization
 rate applicable to the portion for the school year immediately preceding
 the  school  year in which the reorganization took effect. The result is
 the base full value tax rate of the portion.
   (c) Determine the assessed value tax rate that would have  applied  in
 the portion but for the provisions of this section.
   (d)  Multiply  that  assessed value tax rate by the state equalization
 rate that would have applied for the current school  year  but  for  the
 provisions of this section. The result is the target full value tax rate
 for the portion.
   (e)  Determine  the  difference between the target full value tax rate
 and the base full value tax rate for the portion.
   (f) Divide the difference so determined by the total number  of  years
 in the phase-in period applicable to the school district.
   (g)  Multiply  the  quotient so determined by the number of years from
 the beginning of the phase-in period up to and including  the  year  for
 which the tax rate is being determined.
   (h) Add the product so determined to the base full value tax rate.
   (i)  Divide the sum so determined by the applicable equalization rate.
 The quotient is the assessed value tax rate  for  the  portion  for  the
 current  school year. Provided, that if the sum of the real property tax
 levies in all of the portions in the school district, using the assessed
 value tax rates computed pursuant to this  subdivision,  would  yield  a
 real  property  tax  levy that is above or below the total real property
 tax levy specified in the school district budget for the current  school
 year,  the  assessed value tax rates shall all be decreased or increased
 proportionately so as to yield the  specified  real  property  tax  levy
 amount.
   4.  As  used herein the term "portion" means that part of an assessing
 unit located within a school district.
   § 2. This act shall take effect immediately.

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Senate Bill S2520

Sponsored By

Current Bill Status - In Senate Committee Education Committee

2023-S2520 (ACTIVE) - Details

2023-S2520 (ACTIVE) - Summary

2023-S2520 (ACTIVE) - Sponsor Memo

2023-S2520 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2520

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Sponsored By

Anthony H. Palumbo

Current Bill Status - In Senate Committee Education Committee

2023-S2520 (ACTIVE) - Details

2023-S2520 (ACTIVE) - Summary

2023-S2520 (ACTIVE) - Sponsor Memo

2023-S2520 (ACTIVE) - Bill Text download pdf

Comments