STATE OF NEW YORK
________________________________________________________________________
S. 3720--A A. 5513--A
2019-2020 Regular Sessions
SENATE - ASSEMBLY
February 13, 2019
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IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
ed, 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 reor-
ganizations and real property tax rates
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 3613 of the education law, as added by section 6 of
2 part A of chapter 56 of the laws of 2014, is amended to read as follows:
3 § 3613. School district reorganizations and real property tax rates.
4 1. When two or more school districts propose to reorganize pursuant to
5 sections fifteen hundred eleven through fifteen hundred thirteen,
6 fifteen hundred twenty-four, fifteen hundred twenty-six, seventeen
7 hundred five, or eighteen hundred one through eighteen hundred three of
8 this chapter, and under the law that would otherwise be applicable, the
9 reorganization would have an impact upon the school tax rates within the
10 areas served by the school districts that existed prior to the reorgan-
11 ization, notwithstanding any other provision of law to the contrary, the
12 boards of education or trustees of all the school districts participat-
13 ing in the proposed reorganization may opt to have that impact deferred
14 for a one-year period and/or phased-in over a period as may be deter-
15 mined by the boards of education or trustees of all participating school
16 districts in the manner prescribed by this section but which shall not
17 exceed a [ten-year] twenty-year period. To exercise such option, the
18 boards of education or trustees of all participating school districts,
19 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
1 forty-five days prior to the special district meeting at which the reor-
2 ganization vote will be held, to defer and/or phase-in the impact as
3 provided herein. If the board of education or trustees of any partic-
4 ipating school district does not approve such a resolution opting for a
5 common phase-in period, the provisions of this section shall not apply.
6 2. During the one-year deferral period, the tax rate for each portion
7 of the school district shall be calculated in the following manner:
8 (a) Determine the assessed value tax rate that applied for the school
9 year immediately preceding the school year in which the reorganization
10 took effect.
11 (b) Multiply that assessed value tax rate by the state equalization
12 rate applicable to the portion for the school year immediately preceding
13 the school year in which the reorganization took effect.
14 (c) Divide the product so determined by the state equalization rate
15 applicable to the portion for the first school year of the reorganized
16 school district. The quotient is the assessed value tax rate for the
17 portion for that school year. Provided, that if the sum of the real
18 property tax levies in all of the portions in the school district, using
19 the assessed value tax rates computed pursuant to this subdivision,
20 would yield a real property tax levy that is above or below the total
21 real property tax levy specified in the school district budget for the
22 current school year, the assessed value tax rates shall all be decreased
23 or increased proportionately so as to yield the specified real property
24 tax levy amount.
25 3. During each year of a phase-in period, whose duration up to [ten]
26 twenty years shall have been determined by the boards of education or
27 trustees of the constituent school districts, the tax rate for each
28 portion of the reorganized school district shall be calculated in the
29 following manner:
30 (a) Determine the assessed value tax rate that applied for the school
31 year immediately preceding the school year in which the reorganization
32 took effect.
33 (b) Multiply that assessed value tax rate by the state equalization
34 rate applicable to the portion for the school year immediately preceding
35 the school year in which the reorganization took effect. The result is
36 the base full value tax rate of the portion.
37 (c) Determine the assessed value tax rate that would have applied in
38 the portion but for the provisions of this section.
39 (d) Multiply that assessed value tax rate by the state equalization
40 rate that would have applied for the current school year but for the
41 provisions of this section. The result is the target full value tax rate
42 for the portion.
43 (e) Determine the difference between the target full value tax rate
44 and the base full value tax rate for the portion.
45 (f) Divide the difference so determined by the total number of years
46 in the phase-in period applicable to the school district.
47 (g) Multiply the quotient so determined by the number of years from
48 the beginning of the phase-in period up to and including the year for
49 which the tax rate is being determined.
50 (h) Add the product so determined to the base full value tax rate.
51 (i) Divide the sum so determined by the applicable equalization rate.
52 The quotient is the assessed value tax rate for the portion for the
53 current school year. Provided, that if the sum of the real property tax
54 levies in all of the portions in the school district, using the assessed
55 value tax rates computed pursuant to this subdivision, would yield a
56 real property tax levy that is above or below the total real property
S. 3720--A 3 A. 5513--A
1 tax levy specified in the school district budget for the current school
2 year, the assessed value tax rates shall all be decreased or increased
3 proportionately so as to yield the specified real property tax levy
4 amount.
5 4. As used herein the term "portion" means that part of an assessing
6 unit located within a school district.
7 § 2. This act shall take effect immediately.