Provides a $500,000 supplemental valuation impact grant to the West Valley central school district

BILL NUMBER:S8189

Title of bill

An act to amend the education law, in relation to providing a supplemental valuation impact grant to the West Valley central school district

Purpose

To provide a $500,000 supplemental valuation impact grant to the West Valley central school district.

Summary of provisions

Paragraph a of subdivision 3 of section 3641 of the education law is amended, and a new paragraph e is added.

Justification

The West Valley Central School District is in the vicinity of the West Valley Nuclear Demonstration Project site, a now defunct project. The real property tax school funding system that New York state uses to fund its public school system disproportionately hurts West Valley, since they have little real property to tax, given that most of their land is state-owned, and as such is tax exempt, primarily as a result of the West Valley Nuclear Demonstration Project that folded. Also, the School District is a small, rural, relatively poor area with little tax base to begin with.

The latest assessment data for 2009 shows that $832,521,000 out of the district's estimated $939,610,000 tax base is tax exempt in the West Valley Central School District. This equates to 93% tax exempt lands. New York State-owned lands account for 83% of this exemption. If taxable, this land at full value would equal over 15 million dollars of tax revenue per school year to the district.

The West Valley Central School District finds itself in a situation unique from most other schools in the state in that 93% of their land is property tax exempt. This bill was requested by the school district to help offset the loss of revenues that they incur due to their tax exempt lands.

Legislative history

This is a new bill.

Fiscal implications

None.

Effective date

Immediately.