What's happening
This bill allows school districts to create tax stabilization reserve funds using unappropriated fund balances to help stabilize property tax rates.
Why it matters
Helps smooth out property tax fluctuations. By letting school districts save surplus funds in special reserve accounts, the bill aims to reduce sudden spikes or drops in property tax rates, offering homeowners and taxpayers more predictable bills from year to year.
Limits on fund accumulation. Only unappropriated balances above 2% of the current budget can be transferred into these reserves, which maintains fiscal discipline and prevents districts from hoarding excessive funds rather than using them for educational needs.
Dedicated, interest-earning accounts. The requirement for these reserve funds to be kept in separate accounts, with any interest earned staying in the fund, provides transparency and encourages prudent, long-term financial planning.
Local flexibility and control. School boards have discretion in creating and using these funds according to local tax stabilization plans, potentially empowering communities to better manage their own property tax burdens in response to local circumstances.
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Who cares
Headline styles
Let Schools Save for Taxes
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to real property taxation
- Referred to real property taxation
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2256
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the education law, in relation to authorizing establishment of tax stabilization reserve funds
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The education law is amended by adding a new article 44 to read as follows:
ARTICLE 44
TAX STABILIZATION RESERVE FUNDS
Section 2150. Tax stabilization reserve funds.
§ 2150. Tax stabilization reserve funds. Notwithstanding any inconsistent provision of law, the board of trustees or board of education of each school district shall be authorized to transfer any monies identified as an unappropriated fund balance in excess of two percent of the current budget permitted to be retained for meeting contingent expenses to a special fund which shall be known as a tax stabilization reserve fund. Monies in such fund shall be deposited in one or more of the banks or trust companies designated in the manner provided by law as depositories of the funds for any given district. The monies in such fund so deposited shall be kept in a separate bank account. Boards of trustees and education may invest the monies in such funds in a manner provided by section eleven of the general municipal law. Any interest earned on the monies so deposited or invested shall accrue to and become part of such fund. Monies in such fund may be appropriated in accordance with a plan to stabilize the school district's property tax rate by making use of such funds to offset tax levy needs.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03519-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.