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- Referred to local government
- Referred to rules
Companion bill
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Authorizes tax increment bonds payable from real property taxes levied by a school district within a blighted project area
In Assembly Committee · Local Governments · Sponsor Sam Hoyt
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the general municipal law, in relation to the municipal redevelopment law authorizing tax increment bonds payable from and secured by real property taxes levied by a school district within a project area
Purpose or general idea of bill
The purpose of the bill is to include a school district's real estate taxes in the allocation of taxes available to pay bonds authorized and issued under the Municipal Redevelopment Law (MRL).
Summary of specific provisions
§ 1- Includes findings and determinations that sound development and redevelopment of blighted areas increases public school enrollment by providing affordable housing and employment opportunities and the need for expanded public education facilities and services.
Read the full memo (874 words)
§ 2- Amends subdivisions (b) and (f) of § 970-c of the General Municipal Law to expand the definition of a "Legislative body" and a "Planning Agency" to include the board of education of a school district which consents to participate in TIF and adds a new subdivision (i)to define the term "school district."
§ 3- Amends subdivision (I) and (n) of § 970-f of the General Municipal Law in regard to the amount of bonds which may be issued and the plan for the relocation of families and person who may be temporarily or permanently displaced from housing facilities in a project area and adds a new subdivision (o) to provide that each redevelopment plan may provide for the consent to and approval of the project area and the redevelopment plan by the board of education of the school district.
§ 4- Amends subdivision (b) and (c) of § 970-h of the General Municipal Law to provide that public notice of the establishment of a project area must include a disclosure of whether a one or more school districts have consented to participate in TIF.
§ 5- Amends § 970-m of the General Municipal Law in regard to the amendment of a redevelopment plan.
§ 6- Amends paragraphs (iii), (iv) and (v) of subdivision (a) of § 970-n of the General Municipal Law in regard to joint undertakings.
§ 7- Amends paragraphs (ii) and (iii) and subparagraph 1 of paragraph (v) of subdivision (b) of § 970-n of the General Municipal Law to include school districts as entities that may be a member of a municipal redevelopment authority and to stipulate that such school districts would, by resolution of the board of education, have a say in the selection of a chairman to such authority.
§ 8- Amends subdivision (a), (b), and (g) and (i) of § 970-o of the General Municipal to provide that TIP bonds are not the debt of a municipality or the State of New York and that no entity pledges its faith and credit to the payment of such debt. This section also clarifies that a school district is not issuing debt by consenting to an allocation of taxes and that a school district's participation in TIP is not dependent on the authorizing of § 6 of Article XVI of the New York State Constitution.
§ 9- Amends paragraph (i) of subdivision (d) of § 970-o of the General Municipal Law.
§ 10- Amends § 970-p of the General Municipal Law to provide that reference to both a municipality and a school district are applicable in approving an allocation of real property taxes and issuance of TIF bonds.
§ 11- Effective date.
Justification
New York's TIF statute, the MRL, has been in effect since 1973. It was considered such a significant financing mechanism for economic development when enacted that the state constitution was amended to allow municipalities to issue TIF bonds payable from allocated real property taxes as an express exception to the constitutional rule that all real property taxes be available under the full faith and credit pledge for general obligations authorized by municipalities. However, the MRL has been used very little even though TIF has become a popular and successful economic development/infrastructure financing regime in many states. The principal deficiencies with the MRL which these amendments address are as follows: (i) unavailability of real property taxes from the school district levy (usually, the largest single line on the tax bill) which has prevented issuance of larger TIF bonds in significant redevelopments; (ii) narrow purposes for which TIF bonds may be issued, (iii) unavailability of alternative revenue sources to pay debt services on TIE bonds, and (iv) uncertainty of future years assessments while TIF bonds are outstanding to raise adequate amounts of incremental tax for debt service on TIF bonds. These amendments address foregoing issues. School districts are not required to participate in the tax increment financing process. However, they may elect to do so by resolution of their boards of education.
To participate, a school district must receive all notices and approve all proceedings (including establishment of the redevelopment plan, setting the boundaries of the project area, and electing members to an authority, if used, and allocating taxes and certifying to the assessor's estimate of future year allocations).
Prior legislative history
2005-2006: A.10365/S.8192.
Fiscal implications
These amendments would stimulate economic development infrastructure financing, enhance tax bases, and lead to increased governmental revenues.
Effective date
This act shall take effect immediately.
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