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S3840Senate2017-2018 SessionSame asA4709

Tax Prisons for Schools

Official title

“Relates to taxation of state correctional facility properties for schools”

Sponsor Patty RitchieSD-48+2 co-sponsorsAffects Local Government
Status
In Senate Committee
Local Government
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Local Government

What's happening

This bill allows school taxes to be levied on state-owned lands where correctional facilities are located, excluding state-built improvements.

Why it matters

  1. Shifts some financial responsibility for local schools onto the state. by allowing school districts to tax state-owned land beneath correctional facilities, which could increase local school funding in communities hosting these facilities.

  2. Excludes state-built prison buildings and infrastructure from taxation. , meaning only the value of the land itself—not the often valuable improvements—can be taxed, limiting the potential tax revenue but still providing new funds.

  3. May address perceived inequities for towns with large state facilities. , as these areas often provide services (like schools) without receiving property tax revenue from major state-owned properties, potentially easing local tax burdens or improving school resources.

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Who cares

Headline styles

Tax Prisons for Schools

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Patty Ritchie

Senator · Senate District 48

Chair, Agriculture

History

  1. Referred to local government
  2. Reported and committed to finance
  3. Referred to local government

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A4709Assembly

Tax State Prisons for Schools

In Assembly Committee · Ways And Means · Sponsor Sandy Galef

Impact 6 · Moderate0% to pass

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

3840

2017-2018 Regular Sessions

IN SENATE

January 27, 2017

Introduced by Sens. RITCHIE, LATIMER -- 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 taxation of state correctional facility properties for schools

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision 1 of section 536 of the real property tax law is amended by adding a new paragraph (h) to read as follows:

(h) All lands owned by the state, exclusive of the improvements erected thereon by the state, on which a correctional facility is located.

§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD07029-02-7

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 taxation of state correctional facility properties for schools

Purpose or general idea of bill

The purpose of this legislation is to add state correctional facility properties to the list of State lands that shall be subject to taxation for school purposes.

Summary of provisions

Section 1. Subdivision 1 of section 536 of the Real Property Tax Law is amended by adding a new paragraph (h) to read as follows: (h) All lands owned by the state, exclusive of the improvements erected thereon by the state, on which a correctional facility is located.

Section 2. Establishes the effective date.

Justification

Currently, there is no state-wide policy regarding the payment of taxes on state-owned correctional facilities. Rather, through piece-meal legislation or agreements, some school districts receive property tax payments from the State for correctional facilities and others do not.

At this time, as reported by David McKay Wilson, New York State pays taxes to 19 of its prisons, while leaving out 34. (Wilson, D. (2016, October 30). NY Pays School Tax in Some Prison Towns. The Journal News, Retrieved from http://www.lohud.com)

This legislation would fix this inequity by treating all school districts containing state-owned correctional facilities equally.

Prior legislative history

This is new legislation.

Fiscal implications for state and local governments

While the exact cost is not known at this time, this passage of this legislation will have a cost to the State while providing a savings to the school district within the locality that houses the correctional facility.

Effective date

This act shall take effect on the first of January next succeeding the date on which is shall have become a law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.