Amd §§3602, 3609-a, 1608 & 1716, add §3609-i, Ed L
 
Provides a New York state residential property tax relief act for public education aid apportionment for certain school years; and provides for the repeal of such provisions upon the expiration thereof.
STATE OF NEW YORK
________________________________________________________________________
1707--A
2019-2020 Regular Sessions
IN SENATE
January 15, 2019
___________
Introduced by Sens. BROOKS, MARTINEZ, SKOUFIS, THOMAS -- read twice and
ordered printed, and when printed to be committed to the Committee on
Education -- recommitted to the Committee on Education in accordance
with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the education law, in relation to providing a New York
state residential property tax relief act for public education aid
apportionment for certain school years; and providing for the repeal
of such provisions upon the expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "New York
2 state residential real property tax relief act for public education."
3 § 2. Legislative findings. The legislature finds that the current
4 primary and secondary education funding system, which is based largely
5 upon real property taxation, is antiquated and creates serious dispari-
6 ties in educational opportunity and inequities with regard to distrib-
7 ution of the system's financial burden. The quality of education that
8 children receive varies widely by geographic region, as does the oppor-
9 tunity for children to participate in extracurricular activities. In
10 addition, taxpayers throughout the state receive real property tax bills
11 from their local school districts based on the value of their homes,
12 which is subject to multiple factors beyond their control, rather than
13 their financial ability to pay, creating serious regional distortions in
14 the relative cost of living. The legislature further finds that our
15 children should not be penalized based upon the geographic location of
16 their home, nor should financial support for the educational system fall
17 more heavily on those who are less able to bear the burden. The legisla-
18 ture therefore must take immediate action to provide relief to those
19 areas most impacted by these disparities through the residential proper-
20 ty tax relief aid determined through a residential property tax relief
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06906-04-0
S. 1707--A 2
1 aid formula. The legislature further orders an education funding study
2 to examine long-term funding alternatives for the state primary and
3 secondary educational system that allows all children throughout the
4 state to receive the same educational opportunities.
5 § 3. Section 3602 of the education law is amended by adding a new
6 subdivision 42 to read as follows:
7 42. New York state residential property tax relief act for public
8 education. a. Eligibility. (1) Each school district shall be eligible to
9 receive a New York state residential property tax relief act for public
10 education aid apportionment in the two thousand twenty-one--two thousand
11 twenty-two school year, which shall equal the greater of: (i) the sum of
12 the tax equalization aid apportionment, the tax limitation ceiling aid
13 apportionment, and the wealth adjusted tax rate aid apportionment; or
14 (ii) the residential property tax levy reduction apportionment.
15 (2) Each school district shall be eligible to receive a New York state
16 residential property tax relief act for public education aid apportion-
17 ment in the two thousand twenty-two--two thousand twenty-three school
18 year in the same amount as in the base year.
19 (3) Each school district shall be eligible to receive a New York state
20 residential property tax relief act for public education aid apportion-
21 ment in the two thousand twenty-three--two thousand twenty-four school
22 year in an amount equal to the New York state residential property tax
23 relief act for public education aid apportionment in the two thousand
24 twenty-two--two thousand twenty-three school year multiplied by one and
25 seven hundred sixty-nine ten-thousandths (1.0769).
26 b. Purpose. Funds allocated under this subdivision shall be solely
27 used for the purpose of reducing the residential tax levy defined in
28 subparagraph one of paragraph a of subdivision sixteen of this section.
29 c. Tax equalization aid apportionment. (1) School districts other than
30 districts within a city with a population of one hundred twenty-five
31 thousand or more shall be eligible for a tax equalization aid apportion-
32 ment if: (i) the combined wealth ratio computed pursuant to paragraph c
33 of subdivision three of this section is less than one; and (ii) the
34 expense per pupil defined pursuant to paragraph f of subdivision one of
35 this section is greater than the statewide average expense per pupil.
36 For the two thousand twenty-one--two thousand twenty-two school year,
37 for the purpose of computing aid pursuant to this subdivision, the
38 statewide average expense per pupil shall be sixteen thousand two
39 hundred fifty dollars.
40 (2) The tax equalization formula factor shall be equal to the positive
41 difference of the quotient arrived at when dividing the approved operat-
42 ing expense defined pursuant to paragraph t of subdivision one of this
43 section by total aidable pupil units defined pursuant to paragraph e of
44 subdivision one of this section minus the quotient arrived at when
45 dividing the total real property tax levy by total aidable pupil units
46 defined pursuant to paragraph e of subdivision one of this section.
47 (3) For eligible school districts, the tax equalization formula aid
48 apportionment shall be equal to the product of: (i) the tax equalization
49 formula factor multiplied by (ii) the total aidable pupil units multi-
50 plied by (iii) the regional cost index defined pursuant to paragraph a
51 of subdivision four of this section multiplied by (iv) twenty-five
52 hundredths (.25).
53 d. Tax limitation ceiling aid apportionment. (1) School districts
54 other than districts within a city with a population of one hundred
55 twenty-five thousand or more shall be eligible for a tax limitation
56 ceiling aid apportionment if: (i) the combined wealth ratio is less than
S. 1707--A 3
1 two and five-tenths (2.5); and (ii) the tax effort ratio defined pursu-
2 ant to subparagraph three of paragraph a of subdivision sixteen of this
3 section is greater than the statewide average tax effort ratio. For the
4 two thousand twenty-one--two thousand twenty-two school year, for the
5 purpose of computing aid pursuant to this subdivision, the statewide tax
6 average effort ratio shall be two thousand eight hundred fourteen
7 hundred thousandths (0.02814).
8 (2) For purposes of this subdivision, the tax ceiling shall be equal
9 to the product of (i) twenty-five dollars ($25) multiplied by (ii) the
10 quotient arrived at when dividing the tax effort ratio by the state
11 average tax effort ratio.
12 (3) The ceiling formula factor shall be equal to:
13 (i) thirty-three dollars and eleven cents ($33.11) for any school
14 district with a tax ceiling greater than or equal to twenty-five dollars
15 but less than forty dollars;
16 (ii) forty-five dollars and sixty cents ($45.60) for any school
17 district with a tax ceiling greater than or equal to forty dollars but
18 less than sixty dollars; and
19 (iii) forty-seven dollars and fifty-two cents ($47.52) for any school
20 district with a tax ceiling greater than or equal to sixty dollars.
21 (4) For eligible school districts, tax limitation ceiling aid appor-
22 tionment shall be equal to the product of: (i) the ceiling formula
23 factor, multiplied by (ii) the regional cost index, multiplied by (iii)
24 total aidable pupil units.
25 e. Wealth adjusted aid apportionment. (1) School districts other than
26 districts within a city with a population of one hundred twenty-five
27 thousand or more shall be eligible for a wealth adjusted aid apportion-
28 ment if: (i) the combined wealth ratio is less than two and five tenths
29 (2.5); and (ii) the quotient arrived at when dividing total general fund
30 expenditure by the total aidable pupil units expressed per one thousand
31 dollars is greater than the statewide average of such calculation. For
32 the two thousand twenty-one--two thousand twenty-two school year, for
33 the purpose of computing aid pursuant to this subdivision, the statewide
34 total general fund expenditure divided by total aidable pupil units
35 expressed per one thousand dollars shall be twenty dollars and five
36 cents.
37 (2) For eligible school districts, the wealth adjusted tax rate aid
38 apportionment shall be equal to the product of: (i) seven hundred
39 dollars ($700) multiplied by (ii) total aidable pupils units multiplied
40 by (iii) the state sharing ratio computed pursuant to paragraph g of
41 subdivision three of this section.
42 f. "Residential real property tax levy reduction apportionment." (1)
43 School districts other than districts with a city with a population of
44 one hundred twenty-five thousand or more, shall be eligible for residen-
45 tial real property tax levy if: (i) the residential tax levy calculation
46 is equal to or greater than fifty percent; and (ii) the combined wealth
47 ratio is less than two and five-tenths (2.5).
48 (2) "Residential tax levy calculation" shall equal the quotient
49 arrived at when dividing the residential real property tax levy defined
50 pursuant to subparagraph one of paragraph a of subdivision sixteen of
51 this section divided by the total actual expenditures for the year
52 commencing in the calendar year one year prior to the calendar year in
53 which the base year began.
54 (3) For eligible school districts, the "residential real property tax
55 levy reduction apportionment" shall mean the product of: (i) the posi-
56 tive difference, if any, between the residential tax levy calculation
S. 1707--A 4
1 defined pursuant to this subparagraph minus fifty percent multiplied by
2 (ii) the residential real property tax levy.
3 g. Method of payment. Notwithstanding any other provision of law to
4 the contrary, the New York state residential property tax relief act for
5 public education aid shall be paid pursuant to section thirty-six
6 hundred nine-i of this part.
7 h. Definition. As used in this subdivision, "total real property tax
8 levy" shall mean the total real property tax levy specified in the
9 school district budget for the year commencing in the calendar year two
10 years prior to the calendar year in which the base year began. The final
11 update of such data shall be reported by the commissioner of taxation
12 and finance to the commissioner by February fifteenth of the base year.
13 The commissioner of taxation and finance shall adopt regulations as
14 appropriate to assure the appropriate collection, classification and
15 reporting of such data for the purposes of paying state aid to the
16 schools.
17 § 4. The opening paragraph of subdivision 1 of section 3609-a of the
18 education law, as amended by section 32 of part B of chapter 57 of the
19 laws of 2007, is amended to read as follows:
20 The GSPS appropriation shall be used to support payments made pursuant
21 to this section, plus apportionments made pursuant to section seven
22 hundred one, seven hundred eleven, seven hundred fifty-one, seven
23 hundred fifty-three, thirty-two hundred two, thirty-six hundred nine-b,
24 thirty-six hundred forty-one and forty-four hundred five of this chap-
25 ter, any other applicable allocations made pursuant to this chapter, but
26 not paid pursuant to the schedule prescribed by this section or sections
27 thirty-six hundred nine-b, thirty-six hundred nine-d [or], thirty-six
28 hundred nine-f or thirty-six hundred nine-i of this [article] part; plus
29 any unconsolidated law provisions which apply to programs funded from
30 such appropriation; plus any sums paid out upon audit of the state comp-
31 troller as final adjustments of apportionments originally claimed and
32 payable pursuant to this subdivision in prior school years; plus sums
33 paid out as prior year adjustments, to the extent an allowance was
34 included in such appropriation for such purpose. Any apportionments
35 provided by this chapter shall be paid in accordance with this section
36 unless specifically exempted.
37 § 5. The education law is amended by adding a new section 3609-i to
38 read as follows:
39 § 3609-i. Moneys apportioned to school districts for reimbursement of
40 apportionments pursuant to the New York state residential property tax
41 relief act for public education. 1. As used in this section, "school
42 district" shall mean a public school district eligible for an apportion-
43 ment of aid under subdivision four of section thirty-six hundred two of
44 this article.
45 2. Moneys apportioned to school districts for reimbursement of appor-
46 tionments pursuant to the New York state residential property tax relief
47 act for public education pursuant to subdivision forty-two of section
48 thirty-six hundred two of this part shall be disbursed as follows:
49 a. On or after the first business day of July of each school year,
50 commencing July first, two thousand twenty-one, a school district shall
51 be paid an amount equal to fifty percent of the payments on October
52 first of the current school year.
53 b. The remaining balance shall be paid after February first, provided
54 that the amounts paid on or before February first shall not be subject
55 to recalculation.
S. 1707--A 5
1 c. No payment may be made pursuant to this subdivision until the
2 amount for each school district is certified by the commissioner of
3 taxation and finance and transmitted to the commissioner. Such certif-
4 ication shall be made on or before January first so as to facilitate
5 payments to be made pursuant to this section.
6 3. Moneys paid pursuant to this section shall be payable to the treas-
7 urer of each city school district, and the treasurer of each union free
8 school district and of each central school district and of each other
9 school district, if there be a treasurer, otherwise to the collector or
10 other disbursing officer of such district, who shall apply for and
11 receive the same as soon as payable.
12 4. Any payment to a school district pursuant to this section shall be
13 general receipts of the district and shall be used solely for the
14 reduction of the residential tax levy.
15 5. Notwithstanding any other provision of law to the contrary,
16 payments made to school districts under this section shall be considered
17 general aid payments made pursuant to section thirty-six hundred nine-a
18 of this part.
19 6. It is the intent of the governor to submit and of the legislature
20 to enact for each fiscal year after the two thousand twenty-one--two
21 thousand twenty-two fiscal year in an annual budget bill an appropri-
22 ation in the amount to be paid to school districts pursuant to subdivi-
23 sion forty-two of section thirty-six hundred two of this part.
24 § 6. Paragraph a of subdivision 7 of section 1608 of the education
25 law, as amended by chapter 514 of the laws of 2016, is amended to read
26 as follows:
27 a. Each year, commencing with the proposed budget for the two thou-
28 sand--two thousand one school year, the trustee or board of trustees
29 shall prepare a property tax report card, pursuant to regulations of the
30 commissioner, and shall make it publicly available by transmitting it to
31 local newspapers of general circulation, appending it to copies of the
32 proposed budget made publicly available as required by law, making it
33 available for distribution at the annual meeting, and otherwise dissem-
34 inating it as required by the commissioner. Such report card shall
35 include: (i) the amount of total spending and total estimated school tax
36 levy that would result from adoption of the proposed budget and the
37 percentage increase or decrease in total spending and total school tax
38 levy from the school district budget for the preceding school year; and
39 (ii) the district's tax levy limit determined pursuant to section two
40 thousand twenty-three-a of this title, and the estimated school tax
41 levy, excluding any levy necessary to support the expenditures pursuant
42 to subparagraphs (i) through (iv) of paragraph i of subdivision two of
43 section two thousand twenty-three-a of this title, that would result
44 from adoption of the proposed budget; and (iii) the projected enrollment
45 growth for the school year for which the budget is prepared, and the
46 percentage change in enrollment from the previous year; and (iv) the
47 percentage increase in the consumer price index, as defined in paragraph
48 c of this subdivision; and (v) the projected amount of the unappropri-
49 ated unreserved fund balance that will be retained if the proposed budg-
50 et is adopted, the projected amount of the reserved fund balance, the
51 projected amount of the appropriated fund balance, the percentage of the
52 proposed budget that the unappropriated unreserved fund balance repres-
53 ents, the actual unappropriated unreserved fund balance retained in the
54 school district budget for the preceding school year, and the percentage
55 of the school district budget for the preceding school year that the
56 actual unappropriated unreserved fund balance represents[, and a sched-
S. 1707--A 6
1 ule of reserve funds, setting forth the name of each reserve fund, a
2 description of its purpose, the balance as of the close of the third
3 quarter of the current school district fiscal year and a brief statement
4 explaining any plans for the use of each such reserve fund for the ensu-
5 ing fiscal year]; and (vi) the amount of the New York state residential
6 property tax relief act for public education amount used to reduce the
7 residential tax levy for the ensuing fiscal year.
8 § 7. Paragraph a of subdivision 7 of section 1716 of the education
9 law, as amended by chapter 514 of the laws of 2016, is amended to read
10 as follows:
11 a. Each year, commencing with the proposed budget for the two thou-
12 sand--two thousand one school year, the board of education shall prepare
13 a property tax report card, pursuant to regulations of the commissioner,
14 and shall make it publicly available by transmitting it to local newspa-
15 pers of general circulation, appending it to copies of the proposed
16 budget made publicly available as required by law, making it available
17 for distribution at the annual meeting, and otherwise disseminating it
18 as required by the commissioner. Such report card shall include: (i) the
19 amount of total spending and total estimated school tax levy that would
20 result from adoption of the proposed budget and the percentage increase
21 or decrease in total spending and total school tax levy from the school
22 district budget for the preceding school year; and (ii) the district's
23 tax levy limit determined pursuant to section two thousand
24 twenty-three-a of this title, and the estimated school tax levy, exclud-
25 ing any levy necessary to support the expenditures pursuant to subpara-
26 graphs (i) through (iv) of paragraph i of subdivision two of section two
27 thousand twenty-three-a of this title, that would result from adoption
28 of the proposed budget; and (iii) the projected enrollment growth for
29 the school year for which the budget is prepared, and the percentage
30 change in enrollment from the previous year; and (iv) the percentage
31 increase in the consumer price index, as defined in paragraph c of this
32 subdivision; and (v) the projected amount of the unappropriated unre-
33 served fund balance that will be retained if the proposed budget is
34 adopted, the projected amount of the reserved fund balance, the project-
35 ed amount of the appropriated fund balance, the percentage of the
36 proposed budget that the unappropriated unreserved fund balance repres-
37 ents, the actual unappropriated unreserved fund balance retained in the
38 school district budget for the preceding school year[, a schedule of
39 reserve funds, setting forth the name of each reserve fund, a
40 description of its purpose, the balance as of the close of the third
41 quarter of the current school district fiscal year and a brief statement
42 explaining any plans for the use of each such reserve fund for the ensu-
43 ing fiscal year and the percentage of the school district budget for the
44 preceding school year that the actual unappropriated unreserved fund
45 balance represents]; and (vi) the amount of the New York state residen-
46 tial property tax relief act for public education amount used to reduce
47 the residential tax levy for the ensuing fiscal year.
48 § 8. This act shall take effect immediately and shall apply to school
49 years commencing on and after July 1, 2021; provided that the provisions
50 of this act shall expire and be deemed repealed on July 1, 2024. Effec-
51 tive immediately, the addition, amendment and/or repeal of any rule or
52 regulation necessary for the implementation of this act on its effective
53 date are authorized to be made and completed on or before such effective
54 date.