What's happening
This bill requires school district property tax refunds ordered by court to be paid in installments over at least three years.
Why it matters
Spreads Out Large Refund Payments. By requiring school districts to pay court-ordered property tax refunds in installments over at least three years, the bill helps districts avoid sudden, significant financial hits that could disrupt annual budgets or force cuts to programs and staffing.
Reduces Immediate Budget Uncertainty. School districts often struggle to predict the timing and size of tax refund liabilities from legal challenges. Installment payments make these costs more predictable and manageable, improving financial planning and stability for schools.
Potential Impact on Taxpayers Owed Refunds. Property owners who win tax assessment cases will have to wait longer to receive the full refund, as payments are spread out. This could affect individuals’ or businesses’ cash flow and financial planning.
Mandate Relief for Local Districts. The change is characterized as "mandate relief," aiming to lessen state-imposed financial obligations on local schools. This reflects ongoing efforts to give districts more flexibility and control over how they handle unexpected fiscal burdens.
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Ease Rules for Schools
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Sponsors
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History
- Referred to local government
- Referred to local government
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1715
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to providing mandate relief to local school districts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (c) of subdivision 1 of section 726 of the real property tax law, as amended by chapter 546 of the laws of 2014, is amended to read as follows:
(c) Any final order in a proceeding under this article [seven of this chapter], which orders or directs the correction or striking of an assessment appearing on that portion of a city, town or county assessment roll applicable to a school district, shall be binding on such school district. Any amount of taxes of such school district at any time collected upon such assessment in excess of the amount which would have been paid had such assessment been made as determined by such order, shall be refunded by the school authorities of such school district, together with interest thereon computed as provided in subdivision two of this section. A school district which levies taxes on behalf of a school district public library may charge back to such public library the portion of such refund attributable to library purposes. Such refund shall be made in accordance with the procedure set forth in this section, provided, however, that application for such refund shall be made, by the petitioner or other person paying such tax, within three years after the entry of the final order ordering or adjudging or determining such assessment to have been excessive, unequal or unlawful, or that real property was misclassified. The time of the pendency of any appeal in any such proceeding or from any such order shall not be deemed part of such three years. Such refund shall be paid in installments for a period of no less than three years.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01852-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to providing mandate relief to local school districts
Purpose
The bill allow school districts to pay back any refund of an excess assessment within three years of the date of the final order.
Summary of provisions
Section 1. Amends paragraph (c) of subdivision 1 of section 726 of the real property tax law to allow school districts to pay back tax refunds in installments for a period of no less than three years from the date of any final orders.
Section 2. Effective date.
Justification
Over the last several years, many school districts have found their school aid cut, but must still find funding to meet all of the mandates that are placed on school districts. School districts statewide have been forced to cut vital programs in light of school aid cuts. New York school districts need real mandate relief. This bill will provide school districts with the ability to pay back any owed tax refunds over a multi-year period, helping to alleviate some of the financial burden that school districts are now facing.
Legislative history
2015-16: S2164/A2373 - Local Government Committee/Real Property Tax 2013-14: S1196-A/A8059 - Local Government Committee/Real Property Tax Committee 2012: S6247 - Local Government Committee
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.