Bill Text: NY S01707 | 2019-2020 | General Assembly | Amended
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 6-0)
Status: (Introduced - Dead) 2020-02-19 - PRINT NUMBER 1707A [S01707 Detail]
Download: New_York-2019-S01707-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 1707--A 2019-2020 Regular Sessions IN SENATE January 15, 2019 ___________ Introduced by Sens. BROOKS, MARTINEZ, SKOUFIS, THOMAS -- read twice and ordered printed, and when printed to be committed to the Committee on Education -- recommitted to the Committee on Education in accordance with Senate Rule 6, sec. 8 -- 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06906-04-0S. 1707--A 2 1 aid formula. The legislature further orders an education funding study 2 to examine long-term funding alternatives for the state primary and 3 secondary educational system that allows all children throughout the 4 state to receive the same educational opportunities. 5 § 3. Section 3602 of the education law is amended by adding a new 6 subdivision 42 to read as follows: 7 42. New York state residential property tax relief act for public 8 education. a. Eligibility. (1) Each school district shall be eligible to 9 receive a New York state residential property tax relief act for public 10 education aid apportionment in the two thousand twenty-one--two thousand 11 twenty-two school year, which shall equal the greater of: (i) the sum of 12 the tax equalization aid apportionment, the tax limitation ceiling aid 13 apportionment, and the wealth adjusted tax rate aid apportionment; or 14 (ii) the residential property tax levy reduction apportionment. 15 (2) 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-two--two thousand twenty-three school 18 year in the same amount as in the base year. 19 (3) Each school district shall be eligible to receive a New York state 20 residential property tax relief act for public education aid apportion- 21 ment in the two thousand twenty-three--two thousand twenty-four school 22 year in an amount equal to the New York state residential property tax 23 relief act for public education aid apportionment in the two thousand 24 twenty-two--two thousand twenty-three school year multiplied by one and 25 seven hundred sixty-nine ten-thousandths (1.0769). 26 b. Purpose. Funds allocated under this subdivision shall be solely 27 used for the purpose of reducing the residential tax levy defined in 28 subparagraph one of paragraph a of subdivision sixteen of this section. 29 c. Tax equalization aid apportionment. (1) School districts other than 30 districts within a city with a population of one hundred twenty-five 31 thousand or more shall be eligible for a tax equalization aid apportion- 32 ment if: (i) the combined wealth ratio computed pursuant to paragraph c 33 of subdivision three of this section is less than one; and (ii) the 34 expense per pupil defined pursuant to paragraph f of subdivision one of 35 this section is greater than the statewide average expense per pupil. 36 For the two thousand twenty-one--two thousand twenty-two school year, 37 for the purpose of computing aid pursuant to this subdivision, the 38 statewide average expense per pupil shall be sixteen thousand two 39 hundred fifty dollars. 40 (2) The tax equalization formula factor shall be equal to the positive 41 difference of the quotient arrived at when dividing the approved operat- 42 ing expense defined pursuant to paragraph t of subdivision one of this 43 section by total aidable pupil units defined pursuant to paragraph e of 44 subdivision one of this section minus the quotient arrived at when 45 dividing the total real property tax levy by total aidable pupil units 46 defined pursuant to paragraph e of subdivision one of this section. 47 (3) For eligible school districts, the tax equalization formula aid 48 apportionment shall be equal to the product of: (i) the tax equalization 49 formula factor multiplied by (ii) the total aidable pupil units multi- 50 plied by (iii) the regional cost index defined pursuant to paragraph a 51 of subdivision four of this section multiplied by (iv) twenty-five 52 hundredths (.25). 53 d. Tax limitation ceiling aid apportionment. (1) School districts 54 other than districts within a city with a population of one hundred 55 twenty-five thousand or more shall be eligible for a tax limitation 56 ceiling aid apportionment if: (i) the combined wealth ratio is less thanS. 1707--A 3 1 two and five-tenths (2.5); and (ii) the tax effort ratio defined pursu- 2 ant to subparagraph three of paragraph a of subdivision sixteen of this 3 section is greater than the statewide average tax effort ratio. For the 4 two thousand twenty-one--two thousand twenty-two school year, for the 5 purpose of computing aid pursuant to this subdivision, the statewide tax 6 average effort ratio shall be two thousand eight hundred fourteen 7 hundred thousandths (0.02814). 8 (2) For purposes of this subdivision, the tax ceiling shall be equal 9 to the product of (i) twenty-five dollars ($25) multiplied by (ii) the 10 quotient arrived at when dividing the tax effort ratio by the state 11 average tax effort ratio. 12 (3) The ceiling formula factor shall be equal to: 13 (i) thirty-three dollars and eleven cents ($33.11) for any school 14 district with a tax ceiling greater than or equal to twenty-five dollars 15 but less than forty dollars; 16 (ii) forty-five dollars and sixty cents ($45.60) for any school 17 district with a tax ceiling greater than or equal to forty dollars but 18 less than sixty dollars; and 19 (iii) forty-seven dollars and fifty-two cents ($47.52) for any school 20 district with a tax ceiling greater than or equal to sixty dollars. 21 (4) For eligible school districts, tax limitation ceiling aid appor- 22 tionment shall be equal to the product of: (i) the ceiling formula 23 factor, multiplied by (ii) the regional cost index, multiplied by (iii) 24 total aidable pupil units. 25 e. Wealth adjusted 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 wealth adjusted aid apportion- 28 ment if: (i) the combined wealth ratio is less than two and five tenths 29 (2.5); and (ii) the quotient arrived at when dividing total general fund 30 expenditure by the total aidable pupil units expressed per one thousand 31 dollars is greater than the statewide average of such calculation. For 32 the two thousand twenty-one--two thousand twenty-two school year, for 33 the purpose of computing aid pursuant to this subdivision, the statewide 34 total general fund expenditure divided by total aidable pupil units 35 expressed per one thousand dollars shall be twenty dollars and five 36 cents. 37 (2) For eligible school districts, the wealth adjusted tax rate aid 38 apportionment shall be equal to the product of: (i) seven hundred 39 dollars ($700) multiplied by (ii) total aidable pupils units multiplied 40 by (iii) the state sharing ratio computed pursuant to paragraph g of 41 subdivision three of this section. 42 f. "Residential real property tax levy reduction apportionment." (1) 43 School districts other than districts with a city with a population of 44 one hundred twenty-five thousand or more, shall be eligible for residen- 45 tial real property tax levy if: (i) the residential tax levy calculation 46 is equal to or greater than fifty percent; and (ii) the combined wealth 47 ratio is less than two and five-tenths (2.5). 48 (2) "Residential tax levy calculation" shall equal the quotient 49 arrived at when dividing the residential real property tax levy defined 50 pursuant to subparagraph one of paragraph a of subdivision sixteen of 51 this section divided by the total actual expenditures for the year 52 commencing in the calendar year one year prior to the calendar year in 53 which the base year began. 54 (3) For eligible school districts, the "residential real property tax 55 levy reduction apportionment" shall mean the product of: (i) the posi- 56 tive difference, if any, between the residential tax levy calculationS. 1707--A 4 1 defined pursuant to this subparagraph minus fifty percent multiplied by 2 (ii) the residential real property tax levy. 3 g. Method of payment. Notwithstanding any other provision of law to 4 the contrary, the New York state residential property tax relief act for 5 public education aid shall be paid pursuant to section thirty-six 6 hundred nine-i of this part. 7 h. Definition. As used in this subdivision, "total real property tax 8 levy" shall mean the total real property tax levy specified in the 9 school district budget for the year commencing in the calendar year two 10 years prior to the calendar year in which the base year began. The final 11 update of such data shall be reported by the commissioner of taxation 12 and finance to the commissioner by February fifteenth of the base year. 13 The commissioner of taxation and finance shall adopt regulations as 14 appropriate to assure the appropriate collection, classification and 15 reporting of such data for the purposes of paying state aid to the 16 schools. 17 § 4. The opening paragraph of subdivision 1 of section 3609-a of the 18 education law, as amended by section 32 of part B of chapter 57 of the 19 laws of 2007, is amended to read as follows: 20 The GSPS appropriation shall be used to support payments made pursuant 21 to this section, plus apportionments made pursuant to section seven 22 hundred one, seven hundred eleven, seven hundred fifty-one, seven 23 hundred fifty-three, thirty-two hundred two, thirty-six hundred nine-b, 24 thirty-six hundred forty-one and forty-four hundred five of this chap- 25 ter, any other applicable allocations made pursuant to this chapter, but 26 not paid pursuant to the schedule prescribed by this section or sections 27 thirty-six hundred nine-b, thirty-six hundred nine-d [or], thirty-six 28 hundred nine-f or thirty-six hundred nine-i of this [article] part; plus 29 any unconsolidated law provisions which apply to programs funded from 30 such appropriation; plus any sums paid out upon audit of the state comp- 31 troller as final adjustments of apportionments originally claimed and 32 payable pursuant to this subdivision in prior school years; plus sums 33 paid out as prior year adjustments, to the extent an allowance was 34 included in such appropriation for such purpose. Any apportionments 35 provided by this chapter shall be paid in accordance with this section 36 unless specifically exempted. 37 § 5. The education law is amended by adding a new section 3609-i to 38 read as follows: 39 § 3609-i. Moneys apportioned to school districts for reimbursement of 40 apportionments pursuant to the New York state residential property tax 41 relief act for public education. 1. As used in this section, "school 42 district" shall mean a public school district eligible for an apportion- 43 ment of aid under subdivision four of section thirty-six hundred two of 44 this article. 45 2. Moneys apportioned to school districts for reimbursement of appor- 46 tionments pursuant to the New York state residential property tax relief 47 act for public education pursuant to subdivision forty-two of section 48 thirty-six hundred two of this part shall be disbursed as follows: 49 a. On or after the first business day of July of each school year, 50 commencing July first, two thousand twenty-one, a school district shall 51 be paid an amount equal to fifty percent of the payments on October 52 first of the current school year. 53 b. The remaining balance shall be paid after February first, provided 54 that the amounts paid on or before February first shall not be subject 55 to recalculation.S. 1707--A 5 1 c. No payment may be made pursuant to this subdivision until the 2 amount for each school district is certified by the commissioner of 3 taxation and finance and transmitted to the commissioner. Such certif- 4 ication shall be made on or before January first so as to facilitate 5 payments to be made pursuant to this section. 6 3. Moneys paid pursuant to this section shall be payable to the treas- 7 urer of each city school district, and the treasurer of each union free 8 school district and of each central school district and of each other 9 school district, if there be a treasurer, otherwise to the collector or 10 other disbursing officer of such district, who shall apply for and 11 receive the same as soon as payable. 12 4. Any payment to a school district pursuant to this section shall be 13 general receipts of the district and shall be used solely for the 14 reduction of the residential tax levy. 15 5. Notwithstanding any other provision of law to the contrary, 16 payments made to school districts under this section shall be considered 17 general aid payments made pursuant to section thirty-six hundred nine-a 18 of this part. 19 6. It is the intent of the governor to submit and of the legislature 20 to enact for each fiscal year after the two thousand twenty-one--two 21 thousand twenty-two fiscal year in an annual budget bill an appropri- 22 ation in the amount to be paid to school districts pursuant to subdivi- 23 sion forty-two of section thirty-six hundred two of this part. 24 § 6. Paragraph a of subdivision 7 of section 1608 of the education 25 law, as amended by chapter 514 of the laws of 2016, is amended to read 26 as follows: 27 a. Each year, commencing with the proposed budget for the two thou- 28 sand--two thousand one school year, the trustee or board of trustees 29 shall prepare a property tax report card, pursuant to regulations of the 30 commissioner, and shall make it publicly available by transmitting it to 31 local newspapers of general circulation, appending it to copies of the 32 proposed budget made publicly available as required by law, making it 33 available for distribution at the annual meeting, and otherwise dissem- 34 inating it as required by the commissioner. Such report card shall 35 include: (i) the amount of total spending and total estimated school tax 36 levy that would result from adoption of the proposed budget and the 37 percentage increase or decrease in total spending and total school tax 38 levy from the school district budget for the preceding school year; and 39 (ii) the district's tax levy limit determined pursuant to section two 40 thousand twenty-three-a of this title, and the estimated school tax 41 levy, excluding any levy necessary to support the expenditures pursuant 42 to subparagraphs (i) through (iv) of paragraph i of subdivision two of 43 section two thousand twenty-three-a of this title, that would result 44 from adoption of the proposed budget; and (iii) the projected enrollment 45 growth for the school year for which the budget is prepared, and the 46 percentage change in enrollment from the previous year; and (iv) the 47 percentage increase in the consumer price index, as defined in paragraph 48 c of this subdivision; and (v) the projected amount of the unappropri- 49 ated unreserved fund balance that will be retained if the proposed budg- 50 et is adopted, the projected amount of the reserved fund balance, the 51 projected amount of the appropriated fund balance, the percentage of the 52 proposed budget that the unappropriated unreserved fund balance repres- 53 ents, the actual unappropriated unreserved fund balance retained in the 54 school district budget for the preceding school year, and the percentage 55 of the school district budget for the preceding school year that the 56 actual unappropriated unreserved fund balance represents[, and a sched-S. 1707--A 6 1ule of reserve funds, setting forth the name of each reserve fund, a2description of its purpose, the balance as of the close of the third3quarter of the current school district fiscal year and a brief statement4explaining any plans for the use of each such reserve fund for the ensu-5ing fiscal year]; and (vi) the amount of the New York state residential 6 property tax relief act for public education amount used to reduce the 7 residential tax levy for the ensuing fiscal year. 8 § 7. Paragraph a of subdivision 7 of section 1716 of the education 9 law, as amended by chapter 514 of the laws of 2016, is amended to read 10 as follows: 11 a. Each year, commencing with the proposed budget for the two thou- 12 sand--two thousand one school year, the board of education shall prepare 13 a property tax report card, pursuant to regulations of the commissioner, 14 and shall make it publicly available by transmitting it to local newspa- 15 pers of general circulation, appending it to copies of the proposed 16 budget made publicly available as required by law, making it available 17 for distribution at the annual meeting, and otherwise disseminating it 18 as required by the commissioner. Such report card shall include: (i) the 19 amount of total spending and total estimated school tax levy that would 20 result from adoption of the proposed budget and the percentage increase 21 or decrease in total spending and total school tax levy from the school 22 district budget for the preceding school year; and (ii) the district's 23 tax levy limit determined pursuant to section two thousand 24 twenty-three-a of this title, and the estimated school tax levy, exclud- 25 ing any levy necessary to support the expenditures pursuant to subpara- 26 graphs (i) through (iv) of paragraph i of subdivision two of section two 27 thousand twenty-three-a of this title, that would result from adoption 28 of the proposed budget; and (iii) the projected enrollment growth for 29 the school year for which the budget is prepared, and the percentage 30 change in enrollment from the previous year; and (iv) the percentage 31 increase in the consumer price index, as defined in paragraph c of this 32 subdivision; and (v) the projected amount of the unappropriated unre- 33 served fund balance that will be retained if the proposed budget is 34 adopted, the projected amount of the reserved fund balance, the project- 35 ed amount of the appropriated fund balance, the percentage of the 36 proposed budget that the unappropriated unreserved fund balance repres- 37 ents, the actual unappropriated unreserved fund balance retained in the 38 school district budget for the preceding school year[, a schedule of39reserve funds, setting forth the name of each reserve fund, a40description of its purpose, the balance as of the close of the third41quarter of the current school district fiscal year and a brief statement42explaining any plans for the use of each such reserve fund for the ensu-43ing fiscal year and the percentage of the school district budget for the44preceding school year that the actual unappropriated unreserved fund45balance represents]; and (vi) the amount of the New York state residen- 46 tial property tax relief act for public education amount used to reduce 47 the residential tax levy for the ensuing fiscal year. 48 § 8. This act shall take effect immediately and shall apply to school 49 years commencing on and after July 1, 2021; provided that the provisions 50 of this act shall expire and be deemed repealed on July 1, 2024. Effec- 51 tive immediately, the addition, amendment and/or repeal of any rule or 52 regulation necessary for the implementation of this act on its effective 53 date are authorized to be made and completed on or before such effective 54 date.
