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

1 Co-sponsor

• William J. Larkin Jr.

BILL NUMBER:S2547A

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 propel1y 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 propel1y 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 propel1y 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.6839 of 2010: Referred to Education S.1125B of 2003: Referred to Education

Fiscal implications

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

Effective date

This act shall take effect on September 1, 2013.