BILL NO A05429
SAME AS SAME AS S02772
Amd S3641, Ed L
Provides a $500,000 supplemental valuation impact grant to the West Valley
central school district for the 2015 - 2016 school year.
TITLE OF BILL: An act to amend the education law, in relation to
providing a supplemental valuation impact grant to the West Valley
central school district
To provide a $500,000 supplemental valuation impact grant to the West
Valley central school district.
SUMMARY OF PROVISIONS:
Section 3641, subdivision 3 of the Education Law is amended.
Within the boundaries of the West Valley Central School District is
the West Valley Nuclear Demonstration project site. This site is
located on approximately 3,300 acres in the Town of Ashford where West
Valley is situated. Initially, in 1961, the site was created to
commercially reprocess spent nuclear fuel. The operator of the site
was Nuclear Fuel Services, Inc. (NFS). In the late 1970's, NFS
determined that it was no longer feasible to pursue reprocessing.
Since then the site has been in the process of being decommissioned.
The New York State Energy Research and Development Authority (NYSERDA)
is the owner of the facility.
The real property tax school funding system that New York State uses
to fund its public schools system disproportionately hurts West
Valley, since they have little real property to tax, given that most
of their land is state-owned, and as such is tax exempt, primarily as
a result of the West Valley nuclear reprocessing project that folded.
In addition, the School District is a small, rural, relatively poor
area with little tax base to begin with. This situation is further
magnified by an unwillingness of families to locate in the District
due to fears associated with living close to a nuclear facility couple
with one of the highest tax rates in Cattaraugus County.
West Valley School District assessment date for 2012 shows that
$531,901,574 out of the district's estimated $628,380,834 assessed
value is tax exempt. This equates to approximately 85% tax exempt
lands. New York State-owned lands account for 94% of this exemption.
If taxable, this nuclear site would provide over $2.7 million dollars
of tax revenue each school year to the district. In addition, the
school tax rate in the Town of Ashford would decrease from $37.62 per
thousand to $5.45 per thousand.
As a result of the high tax rate, which is 21 percent to 65 percent
higher than contiguous districts, the District's current property
owners pay a disproportionate share of school tax as compared to
property owners in other districts. This makes purchasing a home cost
prohibitive for young families, and is also a factor contributing to
the District's 30.7 percent rate of decline in student enrollment
between the 2005/06 and 2013/14 school years.
Because of West Valley's unique situation, this bill was requested by
the school district to help offset the loss of revenues that they
incur due to their tax exempt lands.
2013/2014: A6018a (Giglio);
2011,2012: S.859A./A.1955A Referred to Education
2010: S.8189 Referred to Rules
$500,000, subject to appropriation in the state budget.
S T A T E O F N E W Y O R K
2015-2016 Regular Sessions
I N A S S E M B L Y
February 23, 2015
Introduced by M. of A. GIGLIO -- read once and referred to the Committee
on Real Property Taxation
AN ACT to amend the education law, in relation to providing a supple-
mental valuation impact grant to the West Valley central school
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 3 of section 3641 of the education law, as
2 added by section 29-a of part B of chapter 57 of the laws of 2008, para-
3 graph a as amended by section 31 of part A of chapter 57 of the laws of
4 2009, is amended to read as follows:
5 3. Supplemental valuation impact grants. a. In addition to apportion-
6 ments otherwise provided by section thirty-six hundred two of this arti-
7 cle, for aid payable in the two thousand [eight] FIFTEEN--two thousand
8 [nine and two thousand nine--two thousand ten] SIXTEEN school [years]
9 YEAR, the [amounts] AMOUNT specified in [paragraphs] PARAGRAPH c [and d]
10 of this subdivision shall be paid for the purpose of providing addi-
11 tional funding for A school [districts] DISTRICT which [have experienced
12 a significant financial hardship caused by an extraordinary change in
13 the taxable property valuation or extraordinary judgments resulting from
14 tax certiorari proceedings] HAS MORE THAN EIGHTY-THREE PERCENT OF ITS
15 REAL PROPERTY CLASSIFIED AS TAX EXEMPT.
16 b. The purpose of this subdivision is to provide financial assistance
17 to A school [districts] DISTRICT which [have experienced a significant
18 reduction in the taxable full value of the school district or extraor-
19 dinary tax certiorari judgments] HAS MORE THAN EIGHTY-THREE PERCENT OF
20 ITS REAL PROPERTY CLASSIFIED AS TAX EXEMPT. The legislature finds that
21 A school [districts for which a judgment was made resulting from a tax
22 certiorari proceeding which is larger than the total budget of the
23 school district for school year two thousand seven--two thousand eight
24 or for school districts] DISTRICT which [have observed a reduction of
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
A. 5429 2
1 taxable real property of more than seventy-five percent between school
2 year two thousand five--two thousand six and school year two thousand
3 eight--two thousand nine] HAS MORE THAN EIGHTY-THREE PERCENT OF ITS REAL
4 PROPERTY CLASSIFIED AS TAX EXEMPT DURING SCHOOL YEAR TWO THOUSAND
5 FIFTEEN--TWO THOUSAND SIXTEEN may benefit from temporary additional
7 c. To the [Barker central school district, there shall be paid one
8 million three hundred thousand dollars ($1,300,000). Such grant shall be
9 payable to the Barker central school district in accordance with the
10 payment schedules contained in section thirty-six hundred nine-a of this
11 article, notwithstanding any provision of law to the contrary.
12 d. To the Haverstraw-Stony Point central school district, there shall
13 be paid two million five hundred thousand dollars ($2,500,000). Such
14 grant shall be payable to the Haverstraw-Stony Point central school
15 district in accordance with the payment schedules contained in section
16 thirty-six hundred nine-a of this article, notwithstanding any provision
17 of law to the contrary] WEST VALLEY CENTRAL SCHOOL DISTRICT, THERE SHALL
18 BE PAID FIVE HUNDRED THOUSAND DOLLARS ($500,000). SUCH GRANT SHALL BE
19 PAYABLE TO THE WEST VALLEY CENTRAL SCHOOL DISTRICT IN ACCORDANCE WITH
20 THE PAYMENT SCHEDULES CONTAINED IN SECTION THIRTY-SIX HUNDRED NINE-A OF
21 THIS ARTICLE, NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY.
22 S 2. This act shall take effect immediately.