Bill Text: NY A05571 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to school property and real property taxes; establishes the blue ribbon commission on property tax reform; relates to state assistance for local real property reassessment, state assistance to assessing units within a school district, providing a fixed real property assessed value for residential real property owned by certain persons over the age of 65 and providing state reimbursement to municipalities for lost real property tax revenue; requires the state to fund certain programs mandated for municipal corporations or school districts.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2024-01-03 - referred to education [A05571 Detail]
Download: New_York-2023-A05571-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5571 2023-2024 Regular Sessions IN ASSEMBLY March 16, 2023 ___________ Introduced by M. of A. BRABENEC -- read once and referred to the Commit- tee on Education AN ACT to amend the education law, the real property tax law, the gener- al municipal law and the state finance law, in relation to school property and real property taxes The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The education law is amended by adding a new section 1527-b 2 to read as follows: 3 § 1527-b. Funding of mandates imposed on school districts. 1. Defi- 4 nitions. As used in this section, the following terms shall have the 5 following meanings unless the context shall otherwise require: 6 (a) "Mandate" means: 7 (i) any state law, rule, or regulation which creates a new program or 8 requires a higher level of service for an existing program which a 9 school district organized either by special laws or pursuant to the 10 provisions of a general law, is required to provide; or 11 (ii) any general law which grants a new property tax exemption or 12 increases an existing property tax exemption which any such school 13 district is required to provide. 14 (b) "Unfunded mandate" shall mean: 15 (i) any state law, rule, or regulation which creates a new program or 16 requires a higher level of service for an existing program which any 17 such school district is required to provide and which results in a net 18 additional cost to such school district; 19 (ii) any alteration in funding provided to any such school district 20 for the purpose of defraying the costs of a program which it is required 21 to provide, thereby resulting in a net additional cost to such school 22 district; or 23 (iii) any general law which grants a new property tax exemption or 24 increases an existing property tax exemption which any such school EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08877-02-3A. 5571 2 1 district is required to provide, there by resulting in a net additional 2 cost to such school district. 3 (c) "Net additional cost" means the cost or costs incurred or antic- 4 ipated to be incurred within a one year period by a school district in 5 performing or administering a mandate after subtracting therefrom any 6 revenues received or receivable by the school district on account of the 7 mandated program or service, including but not limited to: 8 (i) fees charged to the recipients of the mandated program or service; 9 (ii) state or federal aid paid specifically or categorically in 10 connection with the program or service; and 11 (iii) an offsetting savings resulting from the diminution or elimi- 12 nation of any other program or service directly attributable to the 13 performance or administration of the mandated program. 14 2. Funding of school district mandates. Notwithstanding any other 15 provision of law, no unfunded mandate shall be enacted which creates an 16 annual net additional cost to any school district in excess of ten thou- 17 sand dollars or an aggregate annual net additional cost to all school 18 districts in excess of one million dollars. 19 3. Exemptions to the funding of school district mandates requirement. 20 (a) The state shall not be required to fund any new or expanded programs 21 for school districts if: 22 (i) The mandate is required by a court order or judgment; 23 (ii) The mandate is provided at the option of the school district 24 under a law or regulation; 25 (iii) The mandate results from the passage of a home rule message 26 whereby a school district requests authority to implement the program or 27 service specified in the statute, and the statute imposes costs only 28 upon that school district which requests the authority to impose the 29 program or service; 30 (iv) The mandate is required by, or arises from, an executive order of 31 the governor exercising his or her emergency powers; 32 (v) The mandate is required by statute or executive order that imple- 33 ments a federal law or regulation and results from costs mandated by the 34 federal government to be borne at the local level, unless the statute or 35 executive order results in costs which exceed the costs mandated by the 36 federal government; or 37 (vi) The mandate applies to a small business with fifty employees or 38 less. 39 (b) Each act establishing a mandate shall provide that the effective 40 date of any such mandate imposed on school districts shall be consistent 41 with the needs of the state and school districts to plan implementation 42 thereof, and also consistent with the availability of required funds. 43 § 2. Section 2022 of the education law is amended by adding a new 44 subdivision 8 to read as follows: 45 8. a. Notwithstanding any other provision of law, rule or regulation 46 to the contrary, in a common, union free, central, central high school 47 district or school district, upon the filing of a petition pursuant to 48 paragraph b of this subdivision, with the trustees, the board of educa- 49 tion or the chancellor of a city school district located in a city with 50 greater than one million inhabitants shall submit a proposition for the 51 purpose of voting on the question "shall the school district enter into 52 the optional system of state funding for school district expenses" to 53 the qualified voters of a school district. Such vote shall be held on 54 the third Tuesday in May, provided, however, that such vote shall be 55 held on the second Tuesday in May if the commissioner at the request of 56 a local school board or the chancellor in the city of New York certifiesA. 5571 3 1 no later than March first that such election would conflict with reli- 2 gious observances. If a district votes to join the optional system that 3 vote is binding and may not be altered by the district or its residents. 4 b. Such petition relating to the optional system for state funding of 5 school district expenses shall be submitted no later than April first of 6 the school year in which such question described in paragraph a of this 7 subdivision shall be considered by the voters and must be signed by 8 twenty-five percent of the number of qualified voters. Any valid peti- 9 tion containing a sufficient number of valid signatures to place the 10 question described in paragraph a of this subdivision on the ballot 11 submitted after April first and before July first shall be voted on the 12 third Tuesday in May, provided, however, that such vote shall be held on 13 the second Tuesday in May if the commissioner at the request of a local 14 school board certifies no later than March first that such election 15 would conflict with religious observances of the following school year. 16 § 3. Section 3602 of the education law is amended by adding a new 17 subdivision 40 to read as follows: 18 40. Optional system for state funding of school district expenses. In 19 addition to other apportionments of aid made to districts pursuant to 20 this section, additional apportionments shall be made to districts which 21 elect to receive aid pursuant to this subdivision. a. Definitions. As 22 used in this subdivision: (1) "primary residential real property tax 23 levy" shall be defined as the aggregate property taxes levied by a 24 school district on a school district's STAR eligible properties as 25 defined by section four hundred twenty-five of the real property tax 26 law. 27 (2) "base year primary residential real property tax levy" shall be 28 defined as the primary residential real property tax levy in the school 29 year immediately following the year in which the school district votes 30 to enter into the optional system for state funding of school district 31 expenses pursuant to subdivision eight of section two thousand twenty- 32 two of this chapter. 33 b. Transition period. (1) A school district shall certify to the 34 commissioner within thirty days of the date at which the vote was taken 35 pursuant to subdivision eight of section two thousand twenty-two of this 36 chapter whether or not qualified voters of the district have elected to 37 enter into the optional system for state funding of school district 38 expenses. Once the commissioner determines that a district has opted 39 into the optional system for state funding of school district expenses 40 the district shall begin receiving aid pursuant to this subdivision in 41 the school year which begins on July first in the subsequent calendar 42 year. 43 (2) School districts which receive aid pursuant to this subdivision 44 shall receive aid pursuant to the schedule contained in this paragraph. 45 School districts shall continue to receive aid pursuant to this para- 46 graph after the phase in period equal to one hundred percent of the base 47 year primary residential real property tax levy. 48 (3) During the first year of the transition period, school districts 49 shall receive an additional apportionment equal to twenty per centum of 50 the base year primary residential real property tax levy. In all subse- 51 quent years of the transition period, school districts shall receive an 52 additional apportionment equal to the following schedule: 53 Percent of Base 54 Year Year Primary Residential Real Property Tax Levy 55 2 40% 56 3 60%A. 5571 4 1 4 80% 2 5 100% 3 In every year after year five such additional apportionment shall be 4 increased annually by a cost of living increase. The cost of living 5 increase shall be added to the additional apportionment provided in the 6 prior year. The cost of living increase shall be calculated as the 7 percentage increase in the consumer price index for the previous twelve 8 months as determined by the commissioner. Such percentage increase shall 9 be multiplied by the previous year's additional apportionment and the 10 product shall be added to the previous year's additional apportionment 11 to calculate the current year's additional apportionment. 12 (4) (i) A participating district shall reduce the primary residential 13 real property tax levy pursuant to the schedule contained in this para- 14 graph. School districts opting into the optional system for state fund- 15 ing of school district expenses may not levy taxes in excess of the 16 remainder of the base year primary residential real property tax levy 17 less the aid provided in paragraph three of this subdivision except to 18 fund the difference between a district's current year capital expenses 19 less the state aid apportioned for such purpose. 20 (ii) Notwithstanding any other provisions of law, rule or regulation 21 to the contrary, a school district which receives aid pursuant to this 22 subdivision shall be authorized to set separate tax warrants and tax 23 rates for the primary residential real property tax levy and other taxa- 24 ble properties. 25 (5) The apportionment hereunder shall not be made until the electing 26 school district has certified to the commissioner that the district's 27 primary residential real property tax levy for the school year in which 28 aid has been accepted pursuant to this paragraph, does not exceed the 29 base year primary residential real property tax levy as defined in this 30 subdivision less the aid apportioned pursuant to this paragraph. 31 c. Local funding share. In each city having a population of one 32 hundred twenty-five thousand or more inhabitants for purposes of calcu- 33 lating the local share of expenditures, the amount of the reduction in 34 the primary residential real property tax levy made pursuant to subpara- 35 graph four of paragraph b of this subdivision shall be deemed to be 36 incorporated in the city share of expenditures for the city school 37 district. 38 d. State finding of program. The legislature shall annually appropri- 39 ate an amount sufficient to support all aid payments incurred pursuant 40 to this subdivision. 41 e. Payment schedule. The commissioner shall develop a payment schedule 42 for aid payments due and payable pursuant to this subdivision and such 43 schedule shall be approved by the director of the budget before such 44 payment schedule takes effect. 45 § 4. The real property tax law is amended by adding a new section 431 46 to read as follows: 47 § 431. Persons sixty-five years of age or over; capped real property 48 school tax rate. 1. (a) Residential real property owned and occupied by 49 one or more persons, each of whom is sixty-five years of age or over and 50 meets each of the requirements for the enhanced exemption for senior 51 citizens set forth in section four hundred twenty-five of this title, or 52 residential real property owned and occupied by a married couple, one of 53 whom is sixty-five years of age or over and meets each of the require- 54 ments for the enhanced exemption for senior citizens set forth in 55 section four hundred twenty-five of this title, shall be eligible for 56 the capped real property school tax rate set forth in this section,A. 5571 5 1 provided the school district, after public hearing, adopts a resolution 2 providing therefor. 3 (b) For purposes of this section, the term "capped real property 4 school tax rate" shall mean the lower of: (i) the real property school 5 tax rate established on the taxable status date next succeeding the date 6 on which an eligible person attains the age of sixty-five years; or (ii) 7 the real property school tax rate established on any taxable status date 8 subsequent to the date on which an eligible person attains the age of 9 sixty-five years, which is lower than the real property school tax rate 10 established pursuant to subparagraph (i) of this paragraph. 11 (c) The capped real property school tax rate shall be determined annu- 12 ally for each eligible person sixty-five years of age or older in 13 accordance with the provisions of paragraphs (a) and (b) of this subdi- 14 vision. 15 2. Any person eligible for the capped real property school tax rate 16 shall apply annually for such capped rate. Such application shall be 17 made in a manner and form determined by the commissioner and shall 18 require proof of the applicant's age. Such application shall be filed 19 with the local assessor on or before the taxable status date for such 20 district. 21 3. Every school district shall notify, or cause to be notified, each 22 person owning residential real property in the school district of the 23 provisions of this section. The provisions of this subdivision may be 24 met by a notice sent to such persons in substantially the following 25 form: "Residential real property owned by persons sixty-five years of 26 age or older may be eligible for a capped real property school tax rate. 27 To receive such capped rate, eligible owners of qualifying property must 28 file an application with their local assessor on or before the applica- 29 ble taxable status date. For further information, please contact your 30 local assessor." 31 4. A school district which provides a capped real property school tax 32 rate for persons sixty-five years of age or over pursuant to this 33 section shall be eligible for reimbursement by the department of educa- 34 tion, as approved by the commissioner of education, in consultation with 35 the executive director of the office of real property services, for one 36 hundred percent of the direct cost to such school district resulting 37 from the implementation of this section. Such direct cost shall be 38 calculated pursuant to regulations of the commissioner of education, in 39 consultation with the commissioner. A claim for such reimbursement 40 shall be made by such school district in a manner and form prescribed by 41 the commissioner of education. 42 § 5. The real property tax law is amended by adding a new section 43 431-a to read as follows: 44 § 431-a. Persons sixty-five years of age or older; fixed real property 45 assessed value. 1. Residential real property owned and occupied as the 46 primary residence, of one or more persons, each of whom is sixty-five 47 years of age or older and all of whom have a combined annual income of 48 one hundred thousand dollars or less for the income tax year immediately 49 preceding the date of application or residential real property owned and 50 occupied as the primary residence, of a married couple, one of whom is 51 sixty-five years of age or older and both of whom have a combined annual 52 income of one hundred thousand dollars or less for the income tax year 53 immediately preceding the date of application, shall be eligible for the 54 fixed real property assessed value established by this section. 55 2. For the purposes of this section, the following terms shall have 56 the following meanings:A. 5571 6 1 (a) "Fixed real property assessed value" shall mean the lower of: 2 (i) the assessed value of real property established on the taxable 3 status date next succeeding the date on which an eligible real property 4 owner attains the age of sixty-five years; or 5 (ii) the assessed value of real property established on any taxable 6 status date subsequent to the date upon which an eligible real property 7 owner attains the age of sixty-five years, which is lower than the 8 assessed value established pursuant to subparagraph (i) of this para- 9 graph. 10 (b) "Residential real property" shall mean any one or two family 11 dwelling, including condominium units and cooperative units. 12 (c) "Income" shall mean the "adjusted gross income" for federal income 13 tax purposes as reported on the applicant's federal or state income tax 14 return for the applicable income tax year, subject to any subsequent 15 amendments or revisions, reduced by distributions, to the extent 16 included in federal adjusted gross income, received from an individual 17 retirement account and an individual retirement annuity; provided that 18 if no such return was filed for the applicable income tax year, "income" 19 shall mean the adjusted gross income that would have been so reported if 20 such a return had been filed. 21 3. Each taxing authority shall annually determine the fixed real prop- 22 erty assessed value for each eligible real property owner. 23 4. Any person eligible for the fixed real property assessed value 24 shall annually apply to the appropriate assessing unit for such fixed 25 assessed value. Such application shall be made in such manner and form 26 as shall be determined by the commissioner, and shall require proof of 27 the applicants' ages and incomes. Such applications shall be filed on or 28 before the taxable status date of the real property. 29 5. Every assessing unit shall notify or cause to be notified, each 30 person owning residential real property within its jurisdiction, of the 31 provisions of this section. Such notice shall be and include words which 32 are substantially the following: "Residential real property owned by 33 persons sixty-five years of age or older and having a combined annual 34 income of one hundred thousand dollars or less, may be eligible for a 35 fixed real property assessed value. To receive such fixed assessed 36 value, eligible owners of qualifying real property must file an applica- 37 tion with their local assessor on or before the taxable status date. For 38 further information, please contact your local assessor." 39 § 6. The real property tax law is amended by adding a new section 40 906-a to read as follows: 41 § 906-a. Effect of fixed real property assessed value upon taxing 42 authorities; state aid. 1. Levy of taxes; determination of taxes due. 43 The amount of taxes to be levied for any taxable year shall be deter- 44 mined without regard to the fact that state aid will be payable pursuant 45 to this section. In addition, the tax rate for any taxable year shall be 46 determined as if no parcels are subject to a fixed real property 47 assessed value pursuant to section four hundred thirty-one-a of this 48 chapter. However, the tax rate so determined shall be applied to the 49 taxable assessed value of each parcel after accounting for all applica- 50 ble exemptions. 51 2. Tax savings. The tax savings for each parcel subject to a fixed 52 real property assessed value pursuant to section four hundred thirty- 53 one-a of this chapter shall be computed by subtracting the amount actu- 54 ally levied against the parcel from the amount that would have been 55 levied if not for the fixed real property assessed value. A statement 56 shall then be placed on the tax bill for the parcel in substantially theA. 5571 7 1 following form: "Your tax savings this year resulting from the fixed 2 real property assessed value is $ ." 3 3. State aid. (a) The total tax savings duly provided by each taxing 4 authority pursuant to this section shall be a state charge, which shall 5 be payable as provided in this subdivision. 6 (b) A taxing authority seeking state aid pursuant to this section 7 shall submit an application therefor to the commissioner. The applica- 8 tion shall include such information as the commissioner shall require. 9 In addition, each taxing authority shall file a copy of such application 10 with the county clerk of the county in which an eligible parcel is situ- 11 ate. 12 (c) Upon approving an application for state aid pursuant to this 13 section, the commissioner shall compute and certify the amounts payable 14 to the taxing authority. Such state aid shall be payable upon the audit 15 and warrant of the state comptroller from vouchers certified and 16 approved by the commissioner. 17 (d) The commissioner may audit an application for state aid pursuant 18 to this section within one year after authorizing payment thereon. If 19 the commissioner should discover that a taxing authority has received a 20 greater or lesser amount of such aid than it should have received, the 21 commissioner shall so notify the taxing authority, and shall cause the 22 next payment of such aid to the taxing authority to be adjusted accord- 23 ingly. 24 4. Installment payments. When real property taxes are payable in 25 installments pursuant to law, the tax savings provided by this section 26 shall be apply proportionally against the respective installments. 27 5. Untimely payment of taxes. When taxes on a property subject to a 28 fixed real property assessed value pursuant to section four hundred 29 thirty-one-a of this chapter are not paid in a timely manner, interest, 30 penalties and any other applicable charges shall be imposed only against 31 the balance due after the tax savings provided by this section have been 32 deducted from the taxes owed. 33 § 7. Paragraph (a) of subdivision 2 of section 1573 of the real prop- 34 erty tax law, as amended by section 1 of part Y of chapter 56 of the 35 laws of 2010, and as further amended by subdivision (b) of section 1 of 36 part W of chapter 56 of the laws of 2010, is amended and a new subdivi- 37 sion 3-b is added to read as follows: 38 (a) State assistance pursuant to subdivision one of this section shall 39 be payable in an amount not to exceed [five] fifteen dollars per parcel 40 for an assessment roll upon which a revaluation is implemented in 41 accordance with an approved plan, and not to exceed two dollars per 42 parcel for any assessment roll upon which a revaluation is not imple- 43 mented in accordance with an approved plan. The amount payable on a per 44 parcel basis shall exclude parcels which are wholly exempt or assessed 45 by the commissioner. 46 3-b. (a) State assistance shall be payable in a one-time payment of up 47 to two dollars per parcel, excluding parcels which are wholly exempt or 48 assessed by the commissioner, to every assessing unit when all such 49 assessing units which comprise a school district composed of more than 50 one assessing unit revalue their assessments at one hundred percent 51 value during the same year, and the assessment rolls derived therefrom 52 are filed in two thousand twenty-three or thereafter. The provisions of 53 this paragraph shall apply only to those parcels within such school 54 district composed of multiple assessing units, when all such assessing 55 units revalue assessments at one hundred percent value during the same 56 year.A. 5571 8 1 (b) No provision of this subdivision shall be deemed to limit the 2 eligibility of any assessing unit to receive state assistance pursuant 3 to subdivisions one and two of this section in addition to the state 4 assistance granted pursuant to this subdivision. 5 (c) If an assessing unit, after having received state assistance 6 pursuant to paragraph (a) of this subdivision, reverts to assessment at 7 less than one hundred percent of the value within four years after the 8 receipt of such aid, such assessing unit shall remit to the state a 9 prorated portion of the aid received, except that in the case of a coun- 10 ty assessing unit, if a city or town therein reverts to assessment at 11 less than one hundred percent of value within five years after the coun- 12 ty's receipt of such aid, the county shall remit to the state a prorated 13 portion of the aid received. 14 § 8. The general municipal law is amended by adding a new section 26 15 to read as follows: 16 § 26. Funding of mandates. 1. Definitions. As used in this section, 17 the following terms shall have the following meanings unless the context 18 shall otherwise require: 19 (a) "Mandate" means: 20 (i) any state law, rule, or regulation which creates a new program or 21 requires a higher level of service for an existing program which a 22 municipal corporation is required to provide; or 23 (ii) any general law which grants a new property tax exemption or 24 increases an existing property tax exemption which the municipal corpo- 25 ration is required to provide. 26 (b) "Unfunded mandate" shall mean: 27 (i) any state law, rule, or regulation which creates a new program or 28 requires a higher level of service for an existing program which a 29 municipal corporation is required to provide and which results in a net 30 additional cost to the municipal corporation; 31 (ii) any alteration in funding provided to a municipal corporation for 32 the purpose of defraying the costs of a program which it is required to 33 provide, thereby resulting in a net additional cost to the municipal 34 corporation; or 35 (iii) any general law which grants a new property tax exemption or 36 increases an existing property tax exemption which the municipal corpo- 37 ration is required to provide, thereby resulting in a net additional 38 cost to the municipal corporation. 39 (c) "Net additional cost" means the cost or costs incurred or antic- 40 ipated to be incurred within a one year period by a local government in 41 performing or administering a mandate after subtracting therefrom any 42 revenues received or receivable by the local government on account of 43 the mandated program or service, including but not limited to: 44 (i) fees charged to the recipients of the mandated program or service; 45 (ii) state or federal aid paid specifically or categorically in 46 connection with the program or service; and 47 (iii) an offsetting savings resulting from the diminution or elimi- 48 nation of any other program or service directly attributable to the 49 performance or administration of the mandated program. 50 2. Funding of municipal corporation mandates. Notwithstanding any 51 other provision of law, no unfunded mandate shall be enacted which 52 creates an annual net additional cost to any municipal corporation in 53 excess of ten thousand dollars or an aggregate annual net additional 54 cost to all municipal corporations in excess of one million dollars.A. 5571 9 1 3. Exceptions to the funding of the municipal corporation mandates 2 requirement. (a) The state shall not be required to fund any new or 3 expanded programs if: 4 (i) The mandate is required by a court order or judgment; 5 (ii) The mandate is provided at the option of the local government 6 under a law, regulation, rule, or order that is permissive rather than 7 mandatory; 8 (iii) The mandate results from the passage of a home rule message 9 whereby a local government requests authority to implement the program 10 or service specified in the statute, and the statute imposes costs only 11 upon that local government which requests the authority to impose the 12 program or service; 13 (iv) The mandate is required by, or arises from, an executive order of 14 the governor exercising his or her emergency powers; or 15 (v) The mandate is required by statute or executive order that imple- 16 ments a federal law or regulation and results from costs mandated by the 17 federal government to be borne at the local level, unless the statute or 18 executive order results in costs with exceed the costs mandated by the 19 federal government. 20 (b) Each act establishing a mandate shall provide that the effective 21 date of any such mandate imposed on municipal corporations shall be 22 consistent with the needs of the state and municipal corporations to 23 plan implementation thereof and consistent with the availability of 24 required funds. 25 § 9. The state finance law is amended by adding a new section 99-qq to 26 read as follows: 27 § 99-qq. The state education fund. 1. There is hereby established in 28 the joint custody of the comptroller and the commissioner of education, 29 a special fund to be known as the "state education fund". 30 2. Such fund shall consist of all revenues received from the sale of 31 any lottery ticket within the state less any expenditures required for 32 the operation of the lottery. 33 3. The moneys in such fund shall be appropriated or transferred only 34 for (i) elementary and secondary education for schools which chose to 35 use the optional system for state funding of school district expenses 36 under subdivision forty of section thirty-six hundred two of the educa- 37 tion law and (ii) municipalities and school districts which have imposed 38 on them unfunded mandates, as such term is defined in section twenty-six 39 of the general municipal law. 40 4. Moneys shall be payable from the fund on the audit and warrant of 41 the comptroller on vouchers approved and certified by the commissioner 42 of education. 43 § 10. 1. The New York state comptroller in coordination with the 44 commissioners of state departments shall see that an extensive and inde- 45 pendent audit is conducted on all state departments and agencies to 46 identify potential cost saving measures and wasteful spending. 47 2. After the conclusion of the audit, the comptroller in coordination 48 with the commissioners of state departments shall ensure all identified 49 cost saving measures are implemented and wasteful spending is ended. All 50 monies saved from the implementation of such cost saving measures and 51 monies retained from the reduction of wasteful spending shall be depos- 52 ited into the education fund established by section 99-qq of the state 53 finance law. 54 § 11. 1. The legislature hereby declares that the real property tax 55 system in the state of New York needs to be examined and restructured in 56 order to provide significant property tax relief for the citizens of theA. 5571 10 1 state. As such, it is determined that a blue ribbon commission on prop- 2 erty tax reform shall be established to examine the current ad valorem 3 property tax system and local education financing system of the state. 4 Such commission shall submit a report and recommendations to the gover- 5 nor and the legislature upon completion of such examination. 6 2. A blue ribbon commission on property tax reform is hereby created 7 to examine, evaluate and make recommendations on alternatives or modifi- 8 cations to the existing ad valorem real property tax system in this 9 state and alternative sources of funding for local education. The 10 commission shall be charged with examining and making recommendations on 11 specific areas of reform for local governments and school districts with 12 the goal of mitigating and reducing the property tax burden in the state 13 of New York. The subject areas to be examined shall include, but not be 14 limited to, the following: 15 (a) Accountability: 16 (i) inspector general for schools and local governments; 17 (ii) enhanced public disclosure of budget data; and 18 (iii) program to eliminate waste and fraud. 19 (b) Governance and structure of local governments and school 20 districts: 21 (i) shared services and/or consolidation of personnel and services; 22 (ii) shared services and/or consolidation of governmental units 23 including special districts; 24 (iii) size of municipal and school district governing boards; and 25 (iv) the school district election process and oversight. 26 (c) Property assessments: 27 (i) property valuation process by local assessors; 28 (ii) equalization rate process used by the office of real property 29 services; 30 (iii) countywide versus local assessment system; 31 (iv) review of state payments to local governments for state owned 32 land; and 33 (v) the definition, limits, qualifications of tax exempt properties. 34 (d) Spending and tax controls: 35 (i) limits on local levy growth; 36 (ii) limits on local tax rate growth; 37 (iii) limits on local spending growth; 38 (iv) prohibition on unfunded state mandates on local governments and 39 school districts; 40 (v) other state's limits on local spending and/or taxing authority; 41 and 42 (vi) a circuit breaker to limit percentage of income spent on property 43 taxes. 44 (e) Potential alternative sources of funding to property taxes: 45 (i) local/regional/state income tax; 46 (ii) sales tax; 47 (iii) blended revenue system; and 48 (iv) other potential revenue sources. 49 3. The blue ribbon commission on property tax reform shall be composed 50 of eleven members. The members, each to serve a term of one year shall 51 be appointed as follows: three members shall be appointed by the gover- 52 nor; three members shall be appointed by the temporary president of the 53 senate; three members shall be appointed by the speaker of the assembly; 54 one member shall be appointed by the minority leader of the assembly; 55 and one member shall be appointed by the minority leader of the senate. 56 Of the members appointed by the governor, one shall be an expert in theA. 5571 11 1 field of municipal finance, one shall be an expert in the field of 2 education finance, and one shall be an expert on assessment adminis- 3 tration. The commission shall elect a chair, a vice-chair and a secre- 4 tary from amongst its members. Notwithstanding the provisions of section 5 74 of the public officers law, section 806 of the general municipal law 6 or any other provision of law, membership on the commission of any state 7 or municipal officer or employee shall not constitute the violation of 8 any code of ethics or a conflict of interest. The commission shall meet 9 at least monthly. Commissioner members shall chair subcommittees to 10 fully examine the five areas of reform. These subcommittees may be 11 appointed by the commission members. The subcommittees shall meet regu- 12 larly and report back to the full commission. Vacancies in the member- 13 ship of the commission and among its officers shall be filled in the 14 manner provided for original appointments. 15 4. The commission may employ and at pleasure remove such personnel as 16 it may deem necessary for the performance of its functions and fix their 17 compensation within the amount made available therefor. 18 5. The commission may meet within and without the state, shall hold 19 public hearings, and shall have all the powers of a legislative commit- 20 tee pursuant to the legislative law. 21 6. The members of the commission shall receive no compensation for 22 their services, but shall be allowed their actual and necessary expenses 23 incurred in the performance of their duties pursuant to this act. 24 7. To the maximum extent feasible, the commission shall be entitled to 25 request and receive, and shall utilize and be provided with such facili- 26 ties, resources and data of any department, division, board, bureau, 27 commission of agency of the state or any political subdivision thereof 28 as it may reasonably request to properly carry out its powers and duties 29 pursuant to this act. 30 8. The blue ribbon commission on property tax reform shall make a 31 final report to the governor and the legislature of its findings, 32 conclusions and recommendations on or before December 1, 2025, and shall 33 submit with such report such legislative proposals as it deems necessary 34 to implement its recommendations. 35 § 12. This act shall take effect April 1, 2023 and shall apply to any 36 general or special law imposing mandates on municipal corporations or 37 school districts enacted on or after such effective date.
