Bill Text: NY A09869 | 2019-2020 | General Assembly | Amended

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

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-02-25 - print number 9869a [A09869 Detail]

Download: New_York-2019-A09869-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         9869--A

                   IN ASSEMBLY

                                    February 20, 2020
                                       ___________

        Introduced  by  M.  of  A.  JEAN-PIERRE -- 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:

     1    Section  1.  This act shall be known and may be cited as the "New York
     2  state residential real property tax relief act for public education."
     3    § 2. Legislative findings. The  legislature  finds  that  the  current
     4  primary  and  secondary education funding system, which is based largely
     5  upon real property taxation, is antiquated and creates serious  dispari-
     6  ties  in  educational opportunity and inequities with regard to distrib-
     7  ution of the system's financial burden. The quality  of  education  that
     8  children  receive varies widely by geographic region, as does the oppor-
     9  tunity for children to participate in extracurricular  activities.    In
    10  addition, taxpayers throughout the state receive real property tax bills
    11  from  their  local  school  districts based on the value of their homes,
    12  which is subject to multiple factors beyond their control,  rather  than
    13  their financial ability to pay, creating serious regional distortions in
    14  the  relative  cost  of  living.  The legislature further finds that our
    15  children should not be penalized based upon the geographic  location  of
    16  their home, nor should financial support for the educational system fall
    17  more heavily on those who are less able to bear the burden. The legisla-
    18  ture  therefore  must  take  immediate action to provide relief to those
    19  areas most impacted by these disparities through the residential proper-
    20  ty tax relief aid determined through a residential property  tax  relief
    21  aid  formula.  The legislature further orders an education funding study
    22  to examine long-term funding alternatives  for  the  state  primary  and
    23  secondary  educational  system  that  allows all children throughout the
    24  state to receive the same educational opportunities.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06906-06-0
        A. 9869--A                          2

     1    § 3. Section 3602 of the education law is  amended  by  adding  a  new
     2  subdivision 42 to read as follows:
     3    42.  New  York  state  residential  property tax relief act for public
     4  education. a. Eligibility. (1) Each school district shall be eligible to
     5  receive a New York state residential property tax relief act for  public
     6  education aid apportionment in the two thousand twenty-one--two thousand
     7  twenty-two school year, which shall equal the greater of: (i) the sum of
     8  the  tax  equalization aid apportionment, the tax limitation ceiling aid
     9  apportionment, and the wealth adjusted tax rate  aid  apportionment;  or
    10  (ii) the residential property tax levy reduction apportionment.
    11    (2) Each school district shall be eligible to receive a New York state
    12  residential  property tax relief act for public education aid apportion-
    13  ment in the two thousand twenty-two--two  thousand  twenty-three  school
    14  year in the same amount as in the base year.
    15    (3) Each school district shall be eligible to receive a New York state
    16  residential  property tax relief act for public education aid apportion-
    17  ment in the two thousand twenty-three--two thousand  twenty-four  school
    18  year  in  an amount equal to the New York state residential property tax
    19  relief act for public education aid apportionment in  the  two  thousand
    20  twenty-two--two  thousand twenty-three school year multiplied by one and
    21  seven hundred sixty-nine ten-thousandths (1.0769).
    22    b. Purpose. Funds allocated under this  subdivision  shall  be  solely
    23  used  for  the  purpose  of reducing the residential tax levy defined in
    24  subparagraph one of paragraph a of subdivision sixteen of this section.
    25    c. Tax equalization aid apportionment. (1) School districts other than
    26  districts within a city with a population  of  one  hundred  twenty-five
    27  thousand or more shall be eligible for a tax equalization aid apportion-
    28  ment if:  (i) the combined wealth ratio computed pursuant to paragraph c
    29  of  subdivision  three  of  this  section is less than one; and (ii) the
    30  expense per pupil defined pursuant to paragraph f of subdivision one  of
    31  this  section  is  greater than the statewide average expense per pupil.
    32  For the two thousand twenty-one--two thousand  twenty-two  school  year,
    33  for  the  purpose  of  computing  aid  pursuant to this subdivision, the
    34  statewide average expense  per  pupil  shall  be  sixteen  thousand  two
    35  hundred fifty dollars.
    36    (2) The tax equalization formula factor shall be equal to the positive
    37  difference of the quotient arrived at when dividing the approved operat-
    38  ing  expense  defined pursuant to paragraph t of subdivision one of this
    39  section by total aidable pupil units defined pursuant to paragraph e  of
    40  subdivision  one  of  this  section  minus  the quotient arrived at when
    41  dividing the total real property tax levy by total aidable  pupil  units
    42  defined pursuant to paragraph e of subdivision one of this section.
    43    (3)  For  eligible  school districts, the tax equalization formula aid
    44  apportionment shall be equal to the product of: (i) the tax equalization
    45  formula factor multiplied by (ii) the total aidable pupil  units  multi-
    46  plied  by  (iii) the regional cost index defined pursuant to paragraph a
    47  of subdivision four of  this  section  multiplied  by  (iv)  twenty-five
    48  hundredths (.25).
    49    d.  Tax  limitation  ceiling  aid  apportionment. (1) School districts
    50  other than districts within a city with  a  population  of  one  hundred
    51  twenty-five  thousand  or  more  shall  be eligible for a tax limitation
    52  ceiling aid apportionment if: (i) the combined wealth ratio is less than
    53  two and five-tenths (2.5); and (ii) the tax effort ratio defined  pursu-
    54  ant  to subparagraph three of paragraph a of subdivision sixteen of this
    55  section is greater than the statewide average tax effort ratio. For  the
    56  two  thousand  twenty-one--two  thousand twenty-two school year, for the
        A. 9869--A                          3

     1  purpose of computing aid pursuant to this subdivision, the statewide tax
     2  average effort ratio  shall  be  two  thousand  eight  hundred  fourteen
     3  hundred thousandths (0.02814).
     4    (2)  For  purposes of this subdivision, the tax ceiling shall be equal
     5  to the product of (i) twenty-five dollars ($25) multiplied by  (ii)  the
     6  quotient  arrived  at  when  dividing  the tax effort ratio by the state
     7  average tax effort ratio.
     8    (3) The ceiling formula factor shall be equal to:
     9    (i) thirty-three dollars and eleven  cents  ($33.11)  for  any  school
    10  district with a tax ceiling greater than or equal to twenty-five dollars
    11  but less than forty dollars;
    12    (ii)  forty-five  dollars  and  sixty  cents  ($45.60)  for any school
    13  district with a tax ceiling greater than or equal to forty  dollars  but
    14  less than sixty dollars; and
    15    (iii)  forty-seven dollars and fifty-two cents ($47.52) for any school
    16  district with a tax ceiling greater than or equal to sixty dollars.
    17    (4) For eligible school districts, tax limitation ceiling  aid  appor-
    18  tionment  shall  be  equal  to  the  product of: (i) the ceiling formula
    19  factor, multiplied by (ii) the regional cost index, multiplied by  (iii)
    20  total aidable pupil units.
    21    e.  Wealth adjusted aid apportionment. (1) School districts other than
    22  districts within a city with a population  of  one  hundred  twenty-five
    23  thousand  or more shall be eligible for a wealth adjusted aid apportion-
    24  ment if:  (i) the combined wealth ratio is less than two and five tenths
    25  (2.5); and (ii) the quotient arrived at when dividing total general fund
    26  expenditure by the total aidable pupil units expressed per one  thousand
    27  dollars  is  greater than the statewide average of such calculation. For
    28  the two thousand twenty-one--two thousand twenty-two  school  year,  for
    29  the purpose of computing aid pursuant to this subdivision, the statewide
    30  total  general  fund  expenditure  divided  by total aidable pupil units
    31  expressed per one thousand dollars shall  be  twenty  dollars  and  five
    32  cents.
    33    (2)  For  eligible  school districts, the wealth adjusted tax rate aid
    34  apportionment shall be equal  to  the  product  of:  (i)  seven  hundred
    35  dollars  ($700) multiplied by (ii) total aidable pupils units multiplied
    36  by (iii) the state sharing ratio computed pursuant  to  paragraph  g  of
    37  subdivision three of this section.
    38    f.  "Residential  real property tax levy reduction apportionment." (1)
    39  School districts other than districts with a city with a  population  of
    40  one hundred twenty-five thousand or more, shall be eligible for residen-
    41  tial real property tax levy if: (i) the residential tax levy calculation
    42  is  equal to or greater than fifty percent; and (ii) the combined wealth
    43  ratio is less than two and five-tenths (2.5).
    44    (2) "Residential  tax  levy  calculation"  shall  equal  the  quotient
    45  arrived  at when dividing the residential real property tax levy defined
    46  pursuant to subparagraph one of paragraph a of  subdivision  sixteen  of
    47  this  section  divided  by  the  total  actual expenditures for the year
    48  commencing in the calendar year one year prior to the calendar  year  in
    49  which the base year began.
    50    (3)  For eligible school districts, the "residential real property tax
    51  levy reduction apportionment" shall mean the product of: (i)  the  posi-
    52  tive  difference,  if  any, between the residential tax levy calculation
    53  defined pursuant to this subparagraph minus fifty percent multiplied  by
    54  (ii) the residential real property tax levy.
    55    g.  Method  of  payment. Notwithstanding any other provision of law to
    56  the contrary, the New York state residential property tax relief act for
        A. 9869--A                          4

     1  public education aid  shall  be  paid  pursuant  to  section  thirty-six
     2  hundred nine-i of this part.
     3    h.  Definition.  As used in this subdivision, "total real property tax
     4  levy" shall mean the total real  property  tax  levy  specified  in  the
     5  school  district budget for the year commencing in the calendar year two
     6  years prior to the calendar year in which the base year began. The final
     7  update of such data shall be reported by the  commissioner  of  taxation
     8  and  finance to the commissioner by February fifteenth of the base year.
     9  The commissioner of taxation and  finance  shall  adopt  regulations  as
    10  appropriate  to  assure  the  appropriate collection, classification and
    11  reporting of such data for the purposes  of  paying  state  aid  to  the
    12  schools.
    13    §  4.  The opening paragraph of subdivision 1 of section 3609-a of the
    14  education law, as amended by section 32 of part B of chapter 57  of  the
    15  laws of 2007, is amended to read as follows:
    16    The GSPS appropriation shall be used to support payments made pursuant
    17  to  this  section,  plus  apportionments  made pursuant to section seven
    18  hundred one,  seven  hundred  eleven,  seven  hundred  fifty-one,  seven
    19  hundred  fifty-three, thirty-two hundred two, thirty-six hundred nine-b,
    20  thirty-six hundred forty-one and forty-four hundred five of  this  chap-
    21  ter, any other applicable allocations made pursuant to this chapter, but
    22  not paid pursuant to the schedule prescribed by this section or sections
    23  thirty-six  hundred  nine-b,  thirty-six hundred nine-d [or], thirty-six
    24  hundred nine-f or thirty-six hundred nine-i of this [article] part; plus
    25  any unconsolidated law provisions which apply to  programs  funded  from
    26  such appropriation; plus any sums paid out upon audit of the state comp-
    27  troller  as  final  adjustments of apportionments originally claimed and
    28  payable pursuant to this subdivision in prior school  years;  plus  sums
    29  paid  out  as  prior  year  adjustments,  to the extent an allowance was
    30  included in such appropriation  for  such  purpose.  Any  apportionments
    31  provided  by  this chapter shall be paid in accordance with this section
    32  unless specifically exempted.
    33    § 5. The education law is amended by adding a new  section  3609-i  to
    34  read as follows:
    35    §  3609-i. Moneys apportioned to school districts for reimbursement of
    36  apportionments pursuant to the New York state residential  property  tax
    37  relief  act  for  public  education. 1. As used in this section, "school
    38  district" shall mean a public school district eligible for an apportion-
    39  ment of aid under subdivision four of section thirty-six hundred two  of
    40  this article.
    41    2.  Moneys apportioned to school districts for reimbursement of appor-
    42  tionments pursuant to the New York state residential property tax relief
    43  act for public education pursuant to subdivision  forty-two  of  section
    44  thirty-six hundred two of this part shall be disbursed as follows:
    45    a.  On  or  after  the first business day of July of each school year,
    46  commencing July first, two thousand twenty-one, a school district  shall
    47  be  paid  an  amount  equal  to fifty percent of the payments on October
    48  first of the current school year.
    49    b. The remaining balance shall be paid after February first,  provided
    50  that  the  amounts paid on or before February first shall not be subject
    51  to recalculation.
    52    c. No payment may be made  pursuant  to  this  subdivision  until  the
    53  amount  for  each  school  district  is certified by the commissioner of
    54  taxation and finance and transmitted to the commissioner.  Such  certif-
    55  ication  shall  be  made  on or before January first so as to facilitate
    56  payments to be made pursuant to this section.
        A. 9869--A                          5

     1    3. Moneys paid pursuant to this section shall be payable to the treas-
     2  urer of each city school district, and the treasurer of each union  free
     3  school  district  and  of each central school district and of each other
     4  school district, if there be a treasurer, otherwise to the collector  or
     5  other  disbursing  officer  of  such  district,  who shall apply for and
     6  receive the same as soon as payable.
     7    4. Any payment to a school district pursuant to this section shall  be
     8  general  receipts  of  the  district  and  shall  be used solely for the
     9  reduction of the residential tax levy.
    10    5. Notwithstanding  any  other  provision  of  law  to  the  contrary,
    11  payments made to school districts under this section shall be considered
    12  general  aid payments made pursuant to section thirty-six hundred nine-a
    13  of this part.
    14    6. It is the intent of the governor to submit and of  the  legislature
    15  to  enact  for  each  fiscal year after the two thousand twenty-one--two
    16  thousand twenty-two fiscal year in an annual budget  bill  an  appropri-
    17  ation  in the amount to be paid to school districts pursuant to subdivi-
    18  sion forty-two of section thirty-six hundred two of this part.
    19    § 6. Paragraph a of subdivision 7 of section  1608  of  the  education
    20  law,  as  amended by chapter 514 of the laws of 2016, is amended to read
    21  as follows:
    22    a. Each year, commencing with the proposed budget for  the  two  thou-
    23  sand--two  thousand  one  school  year, the trustee or board of trustees
    24  shall prepare a property tax report card, pursuant to regulations of the
    25  commissioner, and shall make it publicly available by transmitting it to
    26  local newspapers of general circulation, appending it to copies  of  the
    27  proposed  budget  made  publicly available as required by law, making it
    28  available for distribution at the annual meeting, and otherwise  dissem-
    29  inating  it  as  required  by  the  commissioner. Such report card shall
    30  include: (i) the amount of total spending and total estimated school tax
    31  levy that would result from adoption of  the  proposed  budget  and  the
    32  percentage  increase  or decrease in total spending and total school tax
    33  levy from the school district budget for the preceding school year;  and
    34  (ii)  the  district's  tax levy limit determined pursuant to section two
    35  thousand twenty-three-a of this title,  and  the  estimated  school  tax
    36  levy,  excluding any levy necessary to support the expenditures pursuant
    37  to subparagraphs (i) through (iv) of paragraph i of subdivision  two  of
    38  section  two  thousand  twenty-three-a  of this title, that would result
    39  from adoption of the proposed budget; and (iii) the projected enrollment
    40  growth for the school year for which the budget  is  prepared,  and  the
    41  percentage  change  in  enrollment  from the previous year; and (iv) the
    42  percentage increase in the consumer price index, as defined in paragraph
    43  c of this subdivision; and (v) the projected amount of  the  unappropri-
    44  ated unreserved fund balance that will be retained if the proposed budg-
    45  et  is  adopted,  the projected amount of the reserved fund balance, the
    46  projected amount of the appropriated fund balance, the percentage of the
    47  proposed budget that the unappropriated unreserved fund balance  repres-
    48  ents,  the actual unappropriated unreserved fund balance retained in the
    49  school district budget for the preceding school year, and the percentage
    50  of the school district budget for the preceding  school  year  that  the
    51  actual  unappropriated unreserved fund balance represents[, and a sched-
    52  ule of reserve funds, setting forth the name of  each  reserve  fund,  a
    53  description  of  its  purpose,  the balance as of the close of the third
    54  quarter of the current school district fiscal year and a brief statement
    55  explaining any plans for the use of each such reserve fund for the ensu-
    56  ing fiscal year]; and (vi) the amount of the New York state  residential
        A. 9869--A                          6

     1  property  tax  relief act for public education amount used to reduce the
     2  residential tax levy for the ensuing fiscal year.
     3    §  7.  Paragraph  a  of subdivision 7 of section 1716 of the education
     4  law, as amended by chapter 514 of the laws of 2016, is amended  to  read
     5  as follows:
     6    a.  Each  year,  commencing with the proposed budget for the two thou-
     7  sand--two thousand one school year, the board of education shall prepare
     8  a property tax report card, pursuant to regulations of the commissioner,
     9  and shall make it publicly available by transmitting it to local newspa-
    10  pers of general circulation, appending it  to  copies  of  the  proposed
    11  budget  made  publicly available as required by law, making it available
    12  for distribution at the annual meeting, and otherwise  disseminating  it
    13  as required by the commissioner. Such report card shall include: (i) the
    14  amount  of total spending and total estimated school tax levy that would
    15  result from adoption of the proposed budget and the percentage  increase
    16  or  decrease in total spending and total school tax levy from the school
    17  district budget for the preceding school year; and (ii)  the  district's
    18  tax   levy   limit   determined   pursuant   to   section  two  thousand
    19  twenty-three-a of this title, and the estimated school tax levy, exclud-
    20  ing any levy necessary to support the expenditures pursuant to  subpara-
    21  graphs (i) through (iv) of paragraph i of subdivision two of section two
    22  thousand  twenty-three-a  of this title, that would result from adoption
    23  of the proposed budget; and (iii) the projected  enrollment  growth  for
    24  the  school  year  for  which the budget is prepared, and the percentage
    25  change in enrollment from the previous year;  and  (iv)  the  percentage
    26  increase  in the consumer price index, as defined in paragraph c of this
    27  subdivision; and (v) the projected amount of  the  unappropriated  unre-
    28  served  fund  balance  that  will  be retained if the proposed budget is
    29  adopted, the projected amount of the reserved fund balance, the project-
    30  ed amount of the  appropriated  fund  balance,  the  percentage  of  the
    31  proposed  budget that the unappropriated unreserved fund balance repres-
    32  ents, the actual unappropriated unreserved fund balance retained in  the
    33  school  district  budget  for  the preceding school year[, a schedule of
    34  reserve  funds,  setting  forth  the  name  of  each  reserve  fund,   a
    35  description  of  its  purpose,  the balance as of the close of the third
    36  quarter of the current school district fiscal year and a brief statement
    37  explaining any plans for the use of each such reserve fund for the ensu-
    38  ing fiscal year and the percentage of the school district budget for the
    39  preceding school year that the  actual  unappropriated  unreserved  fund
    40  balance  represents]; and (vi) the amount of the New York state residen-
    41  tial property tax relief act for public education amount used to  reduce
    42  the residential tax levy for the ensuing fiscal year.
    43    §  8. This act shall take effect immediately and shall apply to school
    44  years commencing on and after July 1, 2021; provided that the provisions
    45  of this act shall expire and be deemed repealed on July 1, 2024.  Effec-
    46  tive immediately, the addition, amendment and/or repeal of any  rule  or
    47  regulation necessary for the implementation of this act on its effective
    48  date are authorized to be made and completed on or before such effective
    49  date.