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A07781 Summary:

BILL NOA07781A
 
SAME ASSAME AS S06758-A
 
SPONSORBlankenbush
 
COSPNSR
 
MLTSPNSR
 
 
Establishes an energy system tax stabilization reserve fund in the Copenhagen Central School District to lessen or prevent increases in the school district's real property tax levy resulting from decreases in revenue due to changes in or termination of the payments in lieu of taxes receivable by the school district.
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A07781 Actions:

BILL NOA07781A
 
05/21/2021referred to education
06/07/2021amend (t) and recommit to education
06/07/2021print number 7781a
06/08/2021reference changed to ways and means
06/09/2021reported referred to rules
06/09/2021reported
06/09/2021rules report cal.732
06/09/2021ordered to third reading rules cal.732
06/10/2021substituted by s6758a
 S06758 AMEND=A GRIFFO
 05/14/2021REFERRED TO LOCAL GOVERNMENT
 06/03/2021COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/03/2021ORDERED TO THIRD READING CAL.1503
 06/07/2021AMENDED ON THIRD READING (T) 6758A
 06/10/2021PASSED SENATE
 06/10/2021DELIVERED TO ASSEMBLY
 06/10/2021referred to ways and means
 06/10/2021substituted for a7781a
 06/10/2021ordered to third reading rules cal.732
 06/10/2021passed assembly
 06/10/2021returned to senate
 07/21/2021DELIVERED TO GOVERNOR
 08/02/2021SIGNED CHAP.380
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A07781 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7781A
 
SPONSOR: Blankenbush
  TITLE OF BILL: An act to establish a wind energy systems tax stabilization reserve fund in the Copenhagen Central School District to lessen or prevent increases in the school district's real property tax levy   PURPOSE OR GENERAL IDEA OF BILL: To allow the Copenhagen Central School District to establish a real property tax stabilization fund out of part of the proceeds of a payment in lieu of taxes (PILOT) agreement from various wind farms. Upon termi- nation or decrease of the PILOT payments, transfers from the fund would ease a transition in the tax levy so that taxpayers do not have to bear a sudden spike in real property taxes.   SUMMARY OF PROVISIONS: Section one: The legislative findings section recognizes that the school district's current receipt of significant PILOT payments from wind developments will at some point either terminate or significantly decrease, which could result in a massive destabilization of the district's tax base and the amount of its tax levy to meet current budg- et levels. Section two: This section makes definitions of important terms in the bill, including providing that PILOT payments may mean either PILOTS under Real Property Tax Law Section 487 permitting municipalities to enter into PILOT agreements for wind energy systems or Subdivision fifteen of § 858 of the General Municipal Law (authorizing IDA created PILOTs) and adopting the definition of wind energy systems already found in Real Property Tax Law § 487. Section three: This section permits the school district to create a wind energy systems tax stabilization reserve fund if the fund shall be approved in a separate ballot proposition by a majority of voters in a special district election or in the annual district meeting and election. The proposition must set forth the maximum allowable balance for the fund. After the establishment of the fund, the board of educa- tion may make payments into the fund all or part of any portion of the amount by which the amount of the PILOT payment received in any budget year exceeds the amount of PILOT payment received in the preceding budg- et year. No such payment may cause the fund to exceed the maximum balance approved by the voters. This section further provides that funds may be withdrawn from the fund for any lawful purpose. Such withdrawals would be subject to the usual disclosures required for withdrawals from other reserve funds including disclosures required by the property tax report card. Deposits and withdrawals would be subject to the district's normal annual budget process. All money in the fund is to be deposited, invested, and accounted for under the requirements of subdi- visions 2 and 6 of section 3651 and 3652 of the Education law. Section four: Provides for an immediate effective date.   JUSTIFICATION: The district requires the approval given in this bill to use PILOT revenues to establish a tax stabilization fund which will one day be equal to the task of smoothing the transition that will be required by ramping up the tax levy over a period of time. Absorbing all of the loss or decrease in the PILOT in one or two years would cause a severe spike in the tax levy, dramatic slashing of programs or both. The bill contains significant safeguards to insure the dedication of PILOT funds for this purpose. This legislation seeks authorization to establish a wind energy systems tax stabilization reserve fund to ensure that future decrease or loss of the PILOT payments will not cause a dramatic and onerous spike in the real property tax levy. The district seeks permission through this legislation to prudently use these funds to promote fiscal and tax stability.   PRIOR LEGISLATIVE HISTORY: This is a new bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None for the State of New York. Positive impact on the district's fiscal and tax levy stability.   EFFECTIVE DATE: This act shall take effect immediately.
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A07781 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7781--A
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 21, 2021
                                       ___________
 
        Introduced  by  M.  of  A.  BLANKENBUSH -- 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 establish a wind energy systems tax stabilization reserve fund
          in  the  Copenhagen  Central  School  District  to  lessen  or prevent
          increases in the school district's real property tax levy
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Legislative findings. The legislature hereby finds that the
     2  private  development  and  ownership of a wind energy systems project or
     3  projects located within  the  Copenhagen  Central  School  District  may
     4  result  in  instability in the real property tax base and the budgets of
     5  the district due to the uncertainty with the assessments  of  such  wind
     6  energy  systems  project  or projects and the variability of payments in
     7  lieu of taxes prior to and at termination of such payments.
     8    § 2. Definitions. As used in this act:
     9    (a) "Board of education" or "board" means the board  of  education  of
    10  the Copenhagen Central School District.
    11    (b)  "Wind  energy  systems  tax stabilization reserve fund" or "fund"
    12  means the wind energy systems tax stabilization fund established  pursu-
    13  ant to this act.
    14    (c)  "Payments  in lieu of taxes" or "payments" means payments in lieu
    15  of taxes receivable by the school district pursuant to contracts entered
    16  into in accordance with section 487 of the  real  property  tax  law  or
    17  subdivision  15  of section 858 of the general municipal law on any wind
    18  farm energy system located wholly or  partially  within  the  Copenhagen
    19  Central School District.
    20    (d)  "School  district"  or  "district"  means  the Copenhagen Central
    21  School District.
    22    (e) "Wind energy systems project or projects" shall be defined  as  in
    23  section 487 of the real property tax law and shall include the land upon
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11364-02-1

        A. 7781--A                          2
 
     1  which  the system is located, any equipment used in such generation, and
     2  equipment leading from the system to the interconnection with the trans-
     3  mission system.
     4    § 3. Wind energy systems tax stabilization reserve fund.  The board of
     5  education  is  hereby  authorized to establish a wind energy systems tax
     6  stabilization reserve fund to lessen or prevent increases in the  school
     7  district's  real  property  tax levy resulting from decreases in revenue
     8  due to changes in the amount of or termination of the payments  in  lieu
     9  of  taxes  receivable by the school district; provided, however, that no
    10  such fund shall be established unless approved by a majority vote of the
    11  qualified voters of the district present and voting on a separate ballot
    12  proposition therefor at either a  special  district  meeting  which  the
    13  board  of education may call for such purposes or at the annual district
    14  meeting and election, to be noticed and  conducted  in  either  case  in
    15  accordance  with  article 41 of the education law.  Moneys shall be paid
    16  into and withdrawn from the fund and the fund shall be  administered  as
    17  follows:
    18    (a) For any school district fiscal year commencing after the effective
    19  date  of this act and after the establishment of the wind energy systems
    20  tax stabilization reserve fund, the board  of  education  may  determine
    21  that  there shall be paid into the fund all or any portion of the amount
    22  by which the payments in lieu of taxes receivable by the school district
    23  for such fiscal year  is  greater  than  the  amount  of  such  payments
    24  received  by the school district for the preceding fiscal year, provided
    25  that no payment into the reserve fund shall cause  the  balance  of  the
    26  fund  to  exceed  the  amount  approved in the ballot proposal described
    27  above.
    28    (b) Moneys may be withdrawn from the energy system  tax  stabilization
    29  reserve  fund for any fiscal year to be expended for any lawful purpose.
    30  Withdrawals from the fund shall be disclosed in a manner consistent with
    31  the required disclosures of similar reserve funds held by the  district,
    32  including  disclosures required by the property tax report card prepared
    33  by the district pursuant to the provisions of subdivision 7  of  section
    34  1716  of  the  education  law; and deposits and withdrawals made in each
    35  fiscal year shall be subject to the district's  annual  budget  approval
    36  process.
    37    (c)  The  moneys  in the wind energy systems tax stabilization reserve
    38  fund shall be deposited,  invested  and  accounted  for  in  the  manner
    39  provided for in subdivisions 2 and 6 of section 3651 and section 3652 of
    40  the education law.
    41    § 4. This act shall take effect immediately.
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