Defines non-residents for the purpose of admission to a school district

Title of bill

An act to amend the education law, in relation to defining nonresidents of a district for purposes of admission

Purpose

To improve the fairness of the public education finance system.

Summary of provisions

Authorizes schools to charge tuition in the event 10 or more children reside on property which is 50% or more tax exempt pursuant to Sections 420-A and 420-B of the Real Property Tax Law. Prohibits the charging of tuition to students who reside on various charitable type properties.

Existing law

Allows for significant abuse in the real property tax system. For example, while Senior citizens, who are otherwise eligible to obtain tax exemptions, can be made to pay real property taxes - even for property they have owned for decades and even with social security as their only income. On the other hand, multi-million dollar non-profits can move into a community, purchase dozens, if not hundreds of acres, engage in commercial enterprises through separately formed corporations, and still be wholly exempt from property taxes. These non-profit organizations can send their children to public schools - often increasing local class sizes, thereby requiring the hiring of more teachers.

Justification

This legislation is about bringing equity not only to the real property tax system, but also to the education finance system. The current method of school finance pits students against property taxpayers. In some communities, the problem is exacerbated when large non-profits move into a community, purchase hundreds of acres, and send dozens of children to a small school district. This forces higher property taxes on the taxpaying public and further forces property taxpayer to choose between the educational needs of their community and the capacity to pay.

Legislative history

S.1125-B of 2003: Referred to Education 1997-98: S.366 Passed Senate 1995-96: S.1303 Passed Senate 1993-94: S.4131-A Passed Senate

However, since the years noted above, the legislation has been amended to provide for the circumstances noted in Summary of Provisions (above). Until those amendments, the legislation authorized the charging of tuition to anyone who resided on wholly exempt property (even in the case of a child who lived with a Clergy member when that Clergy member's home was exempt from taxation).

Fiscal implications

Increased revenue to some school districts which decide to charge tuition.

Effective date

September 1 next succeeding its date of enactment.