Bill Text: NY A02910 | 2023-2024 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to education [A02910 Detail]

Download: New_York-2023-A02910-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2910

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 1, 2023
                                       ___________

        Introduced by M. of A. THIELE -- read once and referred 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:

     1    Section 1. Section 3613 of the education law, as added by section 6 of
     2  part A of chapter 56 of the laws of 2014, is amended to read as follows:
     3    §  3613.  School district reorganizations and real property tax rates.
     4  1.  When two or more school districts propose to reorganize pursuant  to
     5  sections  fifteen  hundred  eleven  through  fifteen  hundred  thirteen,
     6  fifteen  hundred  twenty-four,  fifteen  hundred  twenty-six,  seventeen
     7  hundred  five, or eighteen hundred one through eighteen hundred three of
     8  this chapter, and under the law that would otherwise be applicable,  the
     9  reorganization would have an impact upon the school tax rates within the
    10  areas  served by the school districts that existed prior to the reorgan-
    11  ization, notwithstanding any other provision of law to the contrary, the
    12  boards of education or trustees of all the school districts  participat-
    13  ing  in the proposed reorganization may opt to have that impact deferred
    14  for a one-year period and/or phased-in over a period as  may  be  deter-
    15  mined by the boards of education or trustees of all participating school
    16  districts  in  the manner prescribed by this section but which shall not
    17  exceed a [ten-year] twenty-year period. To  exercise  such  option,  the
    18  boards  of  education or trustees of all participating school districts,
    19  after conducting a public hearing,  may  adopt  a  resolution  at  least
    20  forty-five days prior to the special district meeting at which the reor-
    21  ganization  vote  will  be  held, to defer and/or phase-in the impact as
    22  provided herein. If the board of education or trustees  of  any  partic-
    23  ipating  school district does not approve such a resolution opting for a
    24  common phase-in period, the provisions of this section shall not apply.
    25    2. During the one-year deferral period, the tax rate for each  portion
    26  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
        A. 2910                             2

     1    (a)  Determine the assessed value tax rate that applied for the school
     2  year immediately preceding the school year in which  the  reorganization
     3  took effect.
     4    (b)  Multiply  that  assessed value tax rate by the state equalization
     5  rate applicable to the portion for the school year immediately preceding
     6  the school year in which the reorganization took effect.
     7    (c) Divide the product so determined by the  state  equalization  rate
     8  applicable  to  the portion for the first school year of the reorganized
     9  school district. The quotient is the assessed value  tax  rate  for  the
    10  portion  for  that  school  year.  Provided, that if the sum of the real
    11  property tax levies in all of the portions in the school district, using
    12  the assessed value tax rates  computed  pursuant  to  this  subdivision,
    13  would  yield  a  real property tax levy that is above or below the total
    14  real property tax levy specified in the school district budget  for  the
    15  current school year, the assessed value tax rates shall all be decreased
    16  or  increased proportionately so as to yield the specified real property
    17  tax levy amount.
    18    3. During each year of a phase-in period, whose duration up  to  [ten]
    19  twenty  years  shall  have been determined by the boards of education or
    20  trustees of the constituent school districts,  the  tax  rate  for  each
    21  portion  of  the  reorganized school district shall be calculated in the
    22  following manner:
    23    (a) Determine the assessed value tax rate that applied for the  school
    24  year  immediately  preceding the school year in which the reorganization
    25  took effect.
    26    (b) Multiply that assessed value tax rate by  the  state  equalization
    27  rate applicable to the portion for the school year immediately preceding
    28  the  school  year in which the reorganization took effect. The result is
    29  the base full value tax rate of the portion.
    30    (c) Determine the assessed value tax rate that would have  applied  in
    31  the portion but for the provisions of this section.
    32    (d)  Multiply  that  assessed value tax rate by the state equalization
    33  rate that would have applied for the current school  year  but  for  the
    34  provisions of this section. The result is the target full value tax rate
    35  for the portion.
    36    (e)  Determine  the  difference between the target full value tax rate
    37  and the base full value tax rate for the portion.
    38    (f) Divide the difference so determined by the total number  of  years
    39  in the phase-in period applicable to the school district.
    40    (g)  Multiply  the  quotient so determined by the number of years from
    41  the beginning of the phase-in period up to and including  the  year  for
    42  which the tax rate is being determined.
    43    (h) Add the product so determined to the base full value tax rate.
    44    (i)  Divide the sum so determined by the applicable equalization rate.
    45  The quotient is the assessed value tax rate  for  the  portion  for  the
    46  current  school year. Provided, that if the sum of the real property tax
    47  levies in all of the portions in the school district, using the assessed
    48  value tax rates computed pursuant to this  subdivision,  would  yield  a
    49  real  property  tax  levy that is above or below the total real property
    50  tax levy specified in the school district budget for the current  school
    51  year,  the  assessed value tax rates shall all be decreased or increased
    52  proportionately so as to yield the  specified  real  property  tax  levy
    53  amount.
    54    4.  As  used herein the term "portion" means that part of an assessing
    55  unit located within a school district.
    56    § 2. This act shall take effect immediately.