senate Bill S4522

Relates to providing state aid to public school districts in which tax exempt entities are situated

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 08 / Apr / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT

Summary

Relates to providing state aid to public school districts in which tax exempt entities are situated.

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Bill Details

Versions:
S4522
Legislative Cycle:
2013-2014
Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Add ยง546-a, RPT L

Sponsor Memo

BILL NUMBER:S4522

TITLE OF BILL: An act to amend the real property tax law, in relation
to providing state aid to certain public school districts in which tax
exempt entities are situated; and providing for the repeal of such
provisions upon expiration thereof

PURPOSE OR GENERAL IDEA OF BILL:: To provide compensation for lost
property tax revenue for those public school districts in which 25
percent or more of the assessed value of real property is owned by tax
exempt entities.

SUMMARY OF SPECIFIC PROVISIONS:: Section 1 adds a new section 546-a to
the real property tax law to provide additional state aid to public
school districts in which 25 percent or more of the total assessed
value of real property therein is owned by tax exempt entities. The
State Comptroller is directed to create an application form the
district must use, and establish the date by which all applications
must be submitted.

The Commissioner of the State Department of Education is directed to
make payments, not to exceed $2.5 million each year in aggregate, to
such district in compensation for lost revenue. In the event that the
aggregate amount exceeds $2.5 million in any given year, such payments
will be made on a proportional basis.

To prevent manipulation of assessed values to qualify for
compensation, the annual increase in assessed value for any tax exempt
property for the purposes of this chapter is limited to 2 percent,
beginning with the base year of the 2012-13 assessment. roll. The
Commissioner is also authorized to exclude any parcel, the assessed
value of which he or she determines is artificially high and
disproportionate to taxable similar properties within the district.

Section 2 is the effective date.

JUSTIFICATION:: Public school districts across the state are facing
serious budgetary constraints, created by a combination of rising
costs and diminishing tax base. Those constraints have forced
significant cost-cutting measures, ranging from academic and athletic
program eliminations to the lay-off of administrative and teaching
staff. These constraints are particularly severe for school districts
in which a significant portion of real property is owned by tax exempt
entities, including religious institutions, not-for-profit
organizations and public land.

Some districts have received specific supplemental aid from the state
to compensate them for this subsequent loss of real property tax
revenue. This legislation seeks to establish basic criteria for any
public school district to qualify for such additional aid,. Under its
provisions, any public school district in which 25 percent or more of
its assessed real property value is tax exempt qualifies for
compensatory aid from the state.

PRIOR LEGISLATIVE HISTORY:: New Bill.


FISCAL IMPLICATIONS:: The fiscal impact to the state will not exceed
$2.5 million per year for ten years.

EFFECTIVE DATE:: The January 1 next succeeding the date on which the
bill becomes law, and shall be deemed repealed after the 2022-23
assessment roll.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4522

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              April 8, 2013
                               ___________

Introduced  by  Sen. TKACZYK -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the real property tax  law,  in  relation  to  providing
  state aid to certain public school districts in which tax exempt enti-
  ties  are  situated;  and  providing for the repeal of such provisions
  upon expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real  property  tax  law  is amended by adding a new
section 546-a to read as follows:
  S 546-A. STATE AID; EXEMPT LANDS OF TAX EXEMPT  ENTITIES.  1.  IN  ANY
PUBLIC  SCHOOL  DISTRICT  IN  WHICH MORE THAN TWENTY-FIVE PERCENT OF THE
TOTAL ASSESSED VALUE OF REAL PROPERTY  THEREIN,  AS  DETERMINED  BY  THE
ASSESSOR  OF  SUCH  DISTRICT, IS OWNED BY TAX EXEMPT ENTITIES, THE STATE
SHALL MAKE PAYMENTS TO THOSE PUBLIC SCHOOL DISTRICTS IN ACCORDANCE  WITH
THIS SECTION.
  2.  THE  COMPTROLLER  SHALL  CREATE  THE  FORM OF APPLICATION A PUBLIC
SCHOOL DISTRICT MUST USE WHEN  MAKING  A  SUBMISSION  PURSUANT  TO  THIS
SECTION.  THE  COMPTROLLER  SHALL  ALSO  ESTABLISH THE DATE BY WHICH ALL
APPLICATIONS MUST BE SUBMITTED. NO APPLICATIONS  FOR  PAYMENT  SHALL  BE
ACCEPTED AFTER THE DATE ESTABLISHED BY THE COMPTROLLER.
  3.  THE COMMISSIONER SHALL MAKE PAYMENTS, THE AGGREGATE OF WHICH SHALL
NOT EXCEED TWO MILLION FIVE HUNDRED THOUSAND DOLLARS PER YEAR, TO PUBLIC
SCHOOL DISTRICTS, ELIGIBLE PURSUANT TO SUBDIVISION ONE OF THIS  SECTION,
THAT  HAVE MADE TIMELY APPLICATION THEREFOR. FOR EACH SUCH PUBLIC SCHOOL
DISTRICT, THE PAYMENT SHALL BE COMPUTED AS FOLLOWS:
  (A) TAKE THE TOTAL VALUE OF REAL PROPERTY OWNED BY TAX EXEMPT ENTITIES
IN THE PUBLIC SCHOOL DISTRICT MULTIPLIED BY THE APPLICABLE  EQUALIZATION
RATE,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10008-03-3

S. 4522                             2

  (B)  FROM  THAT SUBTRACT TWENTY-FIVE PERCENT OF THE TOTAL VALUE OF ALL
PROPERTY IN THE PUBLIC SCHOOL  DISTRICT  MULTIPLIED  BY  THE  APPLICABLE
EQUALIZATION RATE,
  (C)  MULTIPLY THE DIFFERENCE BY THE TAX RATE FOR THE APPLICABLE PUBLIC
SCHOOL DISTRICT.
  4. IF THE TOTAL AGGREGATE  AMOUNT  OF  PAYMENTS  REQUESTED  BY  PUBLIC
SCHOOL  DISTRICTS  EXCEEDS  THE TWO MILLION FIVE HUNDRED THOUSAND DOLLAR
CAP ALLOWED UNDER SUBDIVISION THREE OF  THIS  SECTION,  THE  COMPTROLLER
SHALL  MAKE  THE  PAYMENTS  TO  EACH PUBLIC SCHOOL DISTRICT ON A PROPOR-
TIONATE BASIS.
  5. THE COMMISSIONER SHALL PROMULGATE ALL RULES AND REGULATIONS  NECES-
SARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION.
  6.  WHEN  CALCULATING THE ASSESSED VALUE OF ANY PARCEL OF PROPERTY FOR
PURPOSES OF THIS SECTION, THE VALUE IN ANY YEAR MAY NOT BE GREATER  THAN
THE  BASE YEAR PLUS TWO PERCENT FOR EACH ADDITIONAL YEAR BEYOND THE BASE
YEAR. THE BASE YEAR FOR ALL PROPERTY FOR PURPOSES OF THIS SECTION  SHALL
BE  THE ASSESSED VALUE OF SUCH PROPERTY FOR THE TWO THOUSAND TWELVE--TWO
THOUSAND THIRTEEN ASSESSMENT ROLL.
  7. THE ASSESSED VALUE OF ANY PROPERTY THAT RECEIVES TAX EXEMPT  STATUS
AFTER THE EFFECTIVE DATE OF THIS SECTION MUST BE EQUIVALENT TO SIMILARLY
SITUATED PARCELS. THE COMMISSIONER MAY REFUSE TO INCLUDE A PARCEL IN THE
CALCULATIONS  REQUIRED  BY  THIS  SECTION IF THE COMMISSIONER DETERMINES
THAT THE  ASSESSED  VALUE  OF  SUCH  PARCEL  IS  ARTIFICIALLY  HIGH  AND
DISPROPORTIONATE TO THE TAXABLE PARCELS LOCATED WITHIN THE PUBLIC SCHOOL
DISTRICTS.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a  law  and  shall  apply  to
assessment rolls prepared on the basis of taxable status dates occurring
on  or  after  such effective date.  This act shall expire and be deemed
repealed following the 2022-23 assessment role.  Effective  immediately,
any  rules and regulations necessary to implement the provisions of this
act on its effective date are authorized to be made on  or  before  such
date.

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