Authorizes the Ballston Spa Central School District to establish a semiconductor manufacturing tax stabilization reserve fund

BILL NUMBER:S7836

Title of bill

An act to establish a semiconductor manufacturing tax stabilization reserve fund in the Ballston Spa Central School District to lessen or prevent increases in the school district's real property tax levy

Purpose

To authorize the Ballston Spa Central School District to establish, subject to voter approval, a real property tax stabilization fund out of a portion of certain tax certiorari reserves set aside by the district pursuant to a proceeding brought by the Global Foundries semiconductor manufacturing facility

Summary of provisions

This measure establishes, in the unconsolidated laws, authorization for the Board of Education of the Ballston Spa Central School District to establish a tax stabilization reserve fund of up to $2 million to lessen or prevent increases in the District's real property tax levy due to sustained decreases in facility assessments Such fund may only be established upon approval of a majority of the voters of the District on a separate ballot proposition conducted in accordance with the provisions of Article 41 of the Education Law.

Justification

The Global Foundries semiconductor manufacturing facility has proven to be a significant economic contributor to the Capital Region generally, and the Towns of Malta, Ballston and Stillwater specifically, but the largest impact by far is on the tax base of the Ballston Spa Central School District. Standard challenges to the assessment of the facility (Article 7 proceedings) resulted in the placement of $2.6 million in the district's Tax Certiorari Reserve, an amount which must be moved by June 30, 2014. While the Board can utilize a portion of it to stabilize taxes this year, it has a fiduciary duty to ensure the long-term stability of the district tax base in the face of future decreases in assessment due to predetermined depreciation. As such, it is seeking to establish a tax stabilization reserve fund for the remaining $2 million in order to lessen or reduce taxes over the next several years. However, a special fund of this nature can only be established by the Legislature. Failure to act will doom the district taxpayers to an otherwise unnecessary choice of increasing taxes or reducing services.

Legislative history

New Bill

Fiscal implications

None to the State, while preserving stability for the taxpayers of the Ballston Spa Central School District

Effective date

Immediately