Relates to providing state aid to public school districts in which tax exempt entities are situated

Title of bill

An act to amend the real property tax law, in relation to providing state aid to certain public school districts in which tax exempt entities are situated; and providing for the repeal of such provisions upon expiration thereof

Purpose

This legislation would help school districts with a large percentage of tax exempt properties within their district meet the growing financial needs of providing an education.

Summary of specific provisions

Section 1 amends the real property tax law so the commissioner shall make payments of up to $2.5 million to school districts wherein a certain percentage of their total assessed value of real property is owned by tax exempt entities.

Section 2 is the effective date and includes a five-year sunset clause.

Justification

Schools depend on property taxes to cover the lion's share of their education, administrative, and capital requirements and shouldn't be penalized when their districts contain a great number of tax exempt religious, educational, state and federal institutions.

Prior legislative history

2016: Referred to Local Government 2015: Referred to Local Government

Fiscal implications

To be determined.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after the first of July next succeeding the date on which this act shall have become law. This act shall expire five years after such effective date when upon such date the provisions of this act shall be deemed repealed.