What's happening
This bill extends the maximum phase-in period for adjusting school district tax rates after reorganization from ten to twenty years.
Why it matters
Longer phase-in period allows communities more time to adjust to new tax rates. after school districts merge, potentially reducing sudden financial hardship for taxpayers in areas where rates are rising.
Might make school district reorganizations more attractive or feasible. , since concerns about sharp, immediate tax increases are lessened, possibly encouraging consolidation for efficiency or educational benefits.
Potential impact on school budgeting and planning. School districts will need to manage a more gradual change in revenue from property taxes, which could affect both short-term and long-term financial decisions, as well as planning for educational services.
Equity considerations arise with prolonged phase-ins. , as residents in different parts of a merged district could be paying different rates for up to 20 years, potentially leading to prolonged disparities in tax burdens within the same educational system.
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Extend School Tax Phase-In
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to education
- Print number 5513a
- Amend and recommit to education
- Referred to education
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.
Extend School Tax Phase-In
In Senate Committee · Education · Sponsor Kenneth P. LaValle
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 3720--A A. 5513--A
2019-2020 Regular Sessions
SENATE - ASSEMBLY
February 13, 2019
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Education -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Education -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the education law, in relation to school district reorganizations and real property tax rates
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3613 of the education law, as added by section 6 of part A of chapter 56 of the laws of 2014, is amended to read as follows:
§ 3613. School district reorganizations and real property tax rates. 1. When two or more school districts propose to reorganize pursuant to sections fifteen hundred eleven through fifteen hundred thirteen, fifteen hundred twenty-four, fifteen hundred twenty-six, seventeen hundred five, or eighteen hundred one through eighteen hundred three of this chapter, and under the law that would otherwise be applicable, the reorganization would have an impact upon the school tax rates within the areas served by the school districts that existed prior to the reorganization, notwithstanding any other provision of law to the contrary, the boards of education or trustees of all the school districts participating in the proposed reorganization may opt to have that impact deferred for a one-year period and/or phased-in over a period as may be determined by the boards of education or trustees of all participating school districts in the manner prescribed by this section but which shall not exceed a [ten-year] twenty-year period. To exercise such option, the boards of education or trustees of all participating school districts, after conducting a public hearing, may adopt a resolution at least
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03204-02-9
S. 3720--A 2 A. 5513--A
forty-five days prior to the special district meeting at which the reorganization vote will be held, to defer and/or phase-in the impact as provided herein. If the board of education or trustees of any participating school district does not approve such a resolution opting for a common phase-in period, the provisions of this section shall not apply.
2. During the one-year deferral period, the tax rate for each portion of the school district shall be calculated in the following manner:
(a) Determine the assessed value tax rate that applied for the school year immediately preceding the school year in which the reorganization took effect.
(b) Multiply that assessed value tax rate by the state equalization rate applicable to the portion for the school year immediately preceding the school year in which the reorganization took effect.
(c) Divide the product so determined by the state equalization rate applicable to the portion for the first school year of the reorganized school district. The quotient is the assessed value tax rate for the portion for that school year. Provided, that if the sum of the real property tax levies in all of the portions in the school district, using the assessed value tax rates computed pursuant to this subdivision, would yield a real property tax levy that is above or below the total real property tax levy specified in the school district budget for the current school year, the assessed value tax rates shall all be decreased or increased proportionately so as to yield the specified real property tax levy amount.
3. During each year of a phase-in period, whose duration up to [ten] twenty years shall have been determined by the boards of education or trustees of the constituent school districts, the tax rate for each portion of the reorganized school district shall be calculated in the following manner:
(a) Determine the assessed value tax rate that applied for the school year immediately preceding the school year in which the reorganization took effect.
(b) Multiply that assessed value tax rate by the state equalization rate applicable to the portion for the school year immediately preceding the school year in which the reorganization took effect. The result is the base full value tax rate of the portion.
(c) Determine the assessed value tax rate that would have applied in the portion but for the provisions of this section.
(d) Multiply that assessed value tax rate by the state equalization rate that would have applied for the current school year but for the provisions of this section. The result is the target full value tax rate for the portion.
(e) Determine the difference between the target full value tax rate and the base full value tax rate for the portion.
(f) Divide the difference so determined by the total number of years in the phase-in period applicable to the school district.
(g) Multiply the quotient so determined by the number of years from the beginning of the phase-in period up to and including the year for which the tax rate is being determined.
(h) Add the product so determined to the base full value tax rate.
(i) Divide the sum so determined by the applicable equalization rate. The quotient is the assessed value tax rate for the portion for the current school year. Provided, that if the sum of the real property tax levies in all of the portions in the school district, using the assessed value tax rates computed pursuant to this subdivision, would yield a real property tax levy that is above or below the total real property
S. 3720--A 3 A. 5513--A
tax levy specified in the school district budget for the current school year, the assessed value tax rates shall all be decreased or increased proportionately so as to yield the specified real property tax levy amount.
4. As used herein the term "portion" means that part of an assessing unit located within a school district.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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