What's happening
This bill imposes a school impact tax on developers of non-senior housing in New York City to fund new public schools.
Why it matters
Directs new development to help pay for school capacity. By imposing a per-unit tax on non-senior housing developments, the bill ensures that developers contribute directly to the costs of building new public schools needed to serve incoming residents—potentially reducing overcrowding and the strain on existing school infrastructure.
Establishes a dedicated funding stream for K-12 school construction. All funds collected from this tax must be used exclusively for constructing new kindergarten through 12th-grade public schools, potentially accelerating school projects in areas experiencing rapid housing growth.
Empowers the Department of Finance with rulemaking authority. The city's Department of Finance is granted broad power to set tax rates, determine collection processes, and manage the distribution of funds, allowing flexibility and responsiveness to changing development trends or school needs.
Creates strict developer accountability with significant penalties. Developers are made personally liable for unpaid taxes, especially in cases of willful neglect or fraud, adding a strong enforcement mechanism that aims to ensure compliance and deter attempts to evade the tax.
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Who cares
Developers of new or converted non-senior housing in New York City
They would owe a per-unit school impact tax, receive notice with their certificate of occupancy and face personal liability for unpaid taxes in specified cases of willful neglect or fraud.
New York City Department of Finance
The department would have authority to issue rules governing the tax, including the timing, form, manner and distribution of collected funds.
New York City public school students and families
All revenue from the tax would be earmarked for construction of new public kindergarten-through-twelfth-grade schools.
Headline styles
Tax Developers for New Schools
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to cities
- Referred to cities
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1094
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
Introduced by M. of A. GLICK, COOK, WALKER, SIMON -- read once and referred to the Committee on Cities
AN ACT to amend the administrative code of the city of New York, in relation to imposing a school impact tax on developers of non-senior housing developments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 28-118.6 of the administrative code of the city of New York is amended by adding a new subdivision 15 to read as follows:
15. The amount to be taxed to the developer or developers of new or converted non-senior housing under the school impact tax pursuant to section 11-238.1 of this code.
§ 2. The administrative code of the city of New York is amended by adding a new section 11-238.1 to read as follows:
§ 11-238.1 School impact tax on non-senior housing developments. a. Imposition of tax. A school impact tax is hereby imposed on any developer or developers of new or converted non-senior housing on a per-unit basis, in an amount determined by the commissioner.
b. Notice of tax. Any developer or developers of new or converted non-senior housing shall be notified of such school impact tax when they receive their certificate of occupancy pursuant to section 28-118.6 of this code.
c. Rules. The department of finance shall have, in addition to any other functions, powers and duties which have been or may be conferred on it by law, the power to make and promulgate rules to carry out the purposes of this section, including, but not limited to, rules related to the timing, form, manner and distribution of funds collected pursuant to this section.
d. Purpose of tax. All funds collected pursuant to this section shall be specifically designated for the construction of new public kindergarten through twelfth grade schools.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05002-01-9
A. 1094 2
e. Penalties. Notwithstanding any provision of any general, special or local law to the contrary, a developer or developers shall be personally responsible for any taxes owed pursuant to this section whenever such developer or developers fail to comply with this section or the rules promulgated hereunder, or make a false or misleading statement or omission and the commissioner determines that such act was due to the developer or developers' willful neglect, or that under such circumstances such act constituted a fraud on the department. The remedy provided herein for an action in personam shall be in addition to any other remedy or procedure for the enforcement of collection of delinquent taxes provided by general, special or local law.
§ 3. This act shall take effect immediately.
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.