What's happening
This bill imposes a school impact tax on developers of new or converted non-senior housing in New York City to fund new public schools.
Why it matters
Directly ties new housing development to school capacity. By imposing a tax on developers of new or converted non-senior housing, the bill recognizes that increased housing leads to more families—and thus more children—moving into an area, which can strain existing public school resources.
Ensures funding is earmarked for new public schools. The legislation requires that all revenue from this tax be used solely for constructing new K–12 public schools, aiming to prevent overcrowding and maintain educational quality as neighborhoods grow.
Gives the city flexibility and enforcement tools. The Department of Finance can set detailed rules about how the tax is collected and distributed, and developers are held personally liable for unpaid taxes or fraudulent filings, improving accountability and compliance.
May impact housing costs and development decisions. By adding a per-unit tax on non-senior housing, the bill could influence how and where developers choose to build, potentially affecting housing supply, affordability, and neighborhood growth patterns.
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Who cares
Developers of new or converted non-senior housing in New York City
They would face a per-unit school impact tax, receive notice with their certificate of occupancy and risk personal liability for unpaid taxes under specified circumstances.
New York City Department of Finance
The department would set rules governing the tax, including the timing, form, manner and distribution of collected funds.
New York City public school families and education advocates
All revenue from the tax would be reserved for construction of new public kindergarten through twelfth-grade schools.
Headline styles
Tax Developers for School Funding
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
1346
2025-2026 Regular Sessions
IN ASSEMBLY
January 9, 2025
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.
LBD03794-01-5
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.