S T A T E   O F   N E W   Y O R K
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                                  5538

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 23, 2011
                               ___________

Introduced  by  M. of A. ENGLEBRIGHT, SPANO -- read once and referred to
  the Committee on Real Property Taxation

AN ACT to amend the real property tax law and the tax law,  in  relation
  to  the  "Middle  Class STAR" rebate program; to amend the tax law, in
  relation to creating the middle class circuit breaker tax  credit;  to
  amend  the administrative code of the city of New York, in relation to
  an enhanced personal income tax credit in such city; and to amend  the
  education  law,  in  relation  to establishing limitations upon school
  district tax levies

  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 1306-b to read as follows:
  S 1306-B. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. TAX REBATES. (A) IF A
PARCEL IS ENTITLED TO THE BASIC OR ENHANCED STAR EXEMPTION AUTHORIZED BY
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER FOR  THE  TWO  THOUSAND
ELEVEN--TWO THOUSAND TWELVE SCHOOL YEAR AND EACH YEAR THEREAFTER, EXCEPT
AS  PROVIDED  IN  PARAGRAPH  (G) OF SUBDIVISION THREE OF THIS SECTION, A
LOCAL PROPERTY TAX REBATE SHALL BE PROVIDED TO THE OWNER  OR  OWNERS  OF
SUCH  PARCEL  AS SHOWN ON THE FINAL ASSESSMENT ROLL FOR SUCH YEAR, IN AN
AMOUNT COMPUTED AS PRESCRIBED BY THIS SECTION AND  SECTION  ONE  HUNDRED
SEVENTY-EIGHT OF THE TAX LAW.
  (B) IT SHALL BE THE RESPONSIBILITY OF THE STATE DEPARTMENT OF TAXATION
AND  FINANCE  TO  ISSUE  SUCH  TAX  REBATES TO SUCH OWNERS IN THE MANNER
PROVIDED BY SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW. NOTHING IN
THIS SECTION SHALL BE CONSTRUED AS  PERMITTING  PARTIAL  OR  INSTALLMENT
PAYMENTS  OF  TAXES  IN A JURISDICTION WHICH HAS NOT AUTHORIZED THE SAME
PURSUANT TO LAW.
  2. PROCEDURE. (A) ON OR BEFORE AUGUST FIFTEENTH EACH YEAR, THE DEPART-
MENT, OR ON OR BEFORE JULY FIRST EACH YEAR, IN THE CASE OF A CITY WITH A
POPULATION OF ONE MILLION OR MORE, THE COMMISSIONER OF FINANCE,  OR  HIS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09132-01-1
              

A. 5538                             2

OR HER DESIGNEE, SHALL PROVIDE TO THE COMMISSIONER A REPORT IN A MUTUAL-
LY  AGREEABLE FORMAT CONCERNING THOSE PARCELS WHICH HAVE BEEN GRANTED AN
EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER
ON  THE  ASSESSMENT  ROLLS USED TO GENERATE THE SCHOOL TAX BILLS FOR THE
TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE SCHOOL TAX YEAR  AND  FOR  EACH
YEAR  THEREAFTER;  EXCEPT  AS  PROVIDED  IN PARAGRAPH (G) OF SUBDIVISION
THREE OF THIS SECTION, PROVIDED HOWEVER THE INFORMATION TO  BE  PROVIDED
ON  SUCH  REPORT  SHALL  BE OBTAINED FROM THE FINAL ASSESSMENT ROLL DATA
FILES USED TO GENERATE THE  TWO  THOUSAND  ELEVEN--TWO  THOUSAND  TWELVE
SCHOOL  TAX  BILLS  AND  EACH YEAR THEREAFTER, FILED WITH THE DEPARTMENT
PURSUANT TO SECTION FIFTEEN HUNDRED NINETY OF THIS CHAPTER ON OR  BEFORE
JULY  THIRTY-FIRST  OF  SUCH YEAR. SUCH REPORT SHALL SET FORTH THE NAMES
AND MAILING ADDRESSES OF THE OWNERS OF SUCH PARCELS  AS  SHOWN  ON  SUCH
ASSESSMENT  ROLL  DATA FILES, THE IDENTIFICATION NUMBERS OF SUCH PARCELS
AS SHOWN ON SUCH ASSESSMENT ROLL DATA FILES, AND SUCH OTHER  INFORMATION
IN  THE  POSSESSION  OF  THE DEPARTMENT, OR IN THE CASE OF A CITY WITH A
POPULATION OF ONE MILLION OR MORE, THE COMMISSIONER OF FINANCE,  AS  THE
COMMISSIONER MAY DEEM NECESSARY FOR THE EFFECTIVE ADMINISTRATION OF THIS
PROGRAM, INCLUDING INFORMATION REGARDING COOPERATIVE APARTMENT BUILDINGS
AND  MOBILE HOME PARKS OR SIMILAR PROPERTY. IT SHALL BE THE RESPONSIBIL-
ITY OF THE ASSESSOR OR ASSESSORS OF EACH ASSESSING UNIT TO  ENSURE  THAT
THE  NAMES  AND MAILING ADDRESSES OF SUCH OWNERS ARE ACCURATELY RECORDED
ON SUCH ROLLS AND FILES TO THE BEST OF HIS OR HER  ABILITY,  BASED  UPON
THE  INFORMATION  CONTAINED  IN  HIS OR HER OFFICE. NOTHING CONTAINED IN
THIS SUBDIVISION SHALL BE CONSTRUED AS AFFECTING IN ANY WAY THE VALIDITY
OR ENFORCEABILITY OF A REAL PROPERTY TAX, OR THE APPLICABILITY OF INTER-
EST OR PENALTIES WITH RESPECT THERETO, WHEN AN OWNER'S NAME  OR  MAILING
ADDRESS HAS NOT BEEN ACCURATELY RECORDED.
  (B) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDI-
VISION,  WHERE  AN  ASSESSING UNIT CONTAINS ONE OR MORE PROPERTIES WHICH
ARE RECEIVING SUCH EXEMPTION IN RELATION TO A PRIOR YEAR ASSESSMENT ROLL
PURSUANT TO PARAGRAPH (D) OF SUBDIVISION SIX  OF  SECTION  FOUR  HUNDRED
TWENTY-FIVE  OF  THIS  CHAPTER,  OR  CONTAINS  ONE  OR MORE PARCELS WITH
RESPECT TO WHICH SUCH EXEMPTION WAS DULY  ADDED  OR  REMOVED  AFTER  THE
FILING  OF THE FINAL ASSESSMENT ROLL PURSUANT TO THE PROVISIONS OF TITLE
THREE OF ARTICLE FIVE OF THIS CHAPTER, THE DEPARTMENT  MAY  REQUIRE  THE
ASSESSOR  TO  FILE WITH IT, ON OR BEFORE JULY THIRTY-FIRST EACH YEAR, OR
SUCH LATER DATE AS THE DEPARTMENT MAY  SPECIFY,  A  SUPPLEMENTAL  REPORT
RELATING  TO SUCH PROPERTY OR PROPERTIES, SO THAT INFORMATION PERTAINING
TO THE OWNERS THEREOF MAY BE INCLUDED IN THE REPORT TO BE  MADE  TO  THE
COMMISSIONER  PURSUANT  TO THIS PARAGRAPH. WHEN ANY INFORMATION REQUIRED
BY THIS PARAGRAPH IS RECEIVED BY THE DEPARTMENT AFTER JULY  THIRTY-FIRST
EACH  YEAR,  SUCH INFORMATION SHALL BE TRANSMITTED AS SOON AS REASONABLY
PRACTICABLE TO THE COMMISSIONER FOR USE IN ISSUING  LOCAL  PROPERTY  TAX
REBATES PURSUANT TO SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW.
  (II)  WHERE  THE  OWNERSHIP  OF  A PARCEL THAT HAD BEEN ELIGIBLE FOR A
REBATE PURSUANT TO THIS SECTION CHANGES OR AN  EXEMPTION  UNDER  SECTION
FOUR  HUNDRED  TWENTY-FIVE  OF THIS CHAPTER HAS BEEN GRANTED OR REMOVED,
THE ASSESSOR SHALL NOTIFY THE DEPARTMENT OF THE  CHANGE  NO  LATER  THAN
AUGUST FIRST OF THE FOLLOWING YEAR.
  3.  REBATE  BASE.   (A) THE DEPARTMENT SHALL CALCULATE THE REBATE BASE
AND CERTIFY THE SAME NO LATER THAN JULY FIRST EACH YEAR.
  (B) TWO REBATE BASES FOR THE BASIC STAR EXEMPTION SHALL BE  DETERMINED
FOR  EACH  SEGMENT  FOR THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE AND
SUBSEQUENT SCHOOL YEARS. SUCH REBATE BASES SHALL BE COMPUTED  BY  DETER-
MINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT FOR PURPOSES OF THE

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BASIC  STAR  EXEMPTION  FOR THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE
AND SUBSEQUENT SCHOOL YEARS,  MULTIPLYING  THAT  AMOUNT  BY  THE  SCHOOL
DISTRICT TAX RATE APPLICABLE WITHIN THAT SEGMENT FOR PURPOSES OF THE TWO
THOUSAND  ELEVEN--TWO  THOUSAND  TWELVE  AND SUBSEQUENT SCHOOL YEARS, AS
REPORTED BY THE SCHOOL DISTRICT.  FOR THE TWO THOUSAND ELEVEN--TWO THOU-
SAND TWELVE AND SUBSEQUENT SCHOOL YEARS,  SUCH  REBATE  BASES  SHALL  BE
COMPUTED  BY  MULTIPLYING  THE  PRODUCT  BY SIXTY PERCENT AND FORTY-FIVE
PERCENT, RESPECTIVELY. THE RESULTS SHALL BE ASSOCIATED  WITH  THE  FIRST
AND  SECOND  INCOME  BRACKETS,  RESPECTIVELY, THAT ARE APPLICABLE WITHIN
THAT SEGMENT.
  (B-1) (I) THE FIRST INCOME BRACKET SHALL BE UP TO  AND  INCLUDING  ONE
HUNDRED TWENTY THOUSAND DOLLARS; THE SECOND INCOME BRACKET SHALL BE OVER
ONE  HUNDRED  TWENTY  THOUSAND  DOLLARS  UP TO AND INCLUDING ONE HUNDRED
FIFTY THOUSAND DOLLARS.
  (II) SUCH BRACKETS ARE SUBJECT TO INDEXING FOR INFLATION  PURSUANT  TO
SUBDIVISION FIFTEEN OF SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW.
  (C)  ONE  REBATE  BASE FOR THE ENHANCED STAR EXEMPTION SHALL BE DETER-
MINED FOR EACH SEGMENT FOR THE TWO THOUSAND ELEVEN--TWO THOUSAND  TWELVE
AND  SUBSEQUENT  SCHOOL  YEARS.  SUCH  REBATE BASES SHALL BE COMPUTED BY
DETERMINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT  FOR  PURPOSES
OF THE ENHANCED STAR EXEMPTION FOR THE TWO THOUSAND ELEVEN--TWO THOUSAND
TWELVE  SCHOOL YEAR.  SUCH REBATE BASES SHALL BE COMPUTED BY MULTIPLYING
THAT AMOUNT BY THE SCHOOL  DISTRICT  TAX  RATE  APPLICABLE  WITHIN  THAT
SEGMENT  FOR  PURPOSES  OF  THAT  SCHOOL YEAR, AS REPORTED BY THE SCHOOL
DISTRICT, AND THEN MULTIPLYING THE PRODUCT.
  (D) FOR PURPOSES OF THIS SECTION, THE TERM "SEGMENT" MEANS THE PART OF
A CITY OR TOWN THAT IS WITHIN A SCHOOL DISTRICT.
  (E) IN THE CASE OF SCHOOL DISTRICTS WITHIN SPECIAL ASSESSING UNITS  AS
DEFINED  IN  SECTION  EIGHTEEN  HUNDRED  ONE OF THIS CHAPTER, THE SCHOOL
DISTRICT TAX RATE TO BE USED FOR THIS PURPOSE  SHALL  BE  THE  TAX  RATE
APPLICABLE  TO  CLASS  ONE  PROPERTIES AS DEFINED IN ARTICLE EIGHTEEN OF
THIS CHAPTER, AS REPORTED BY THE SCHOOL DISTRICT AND THE  EXEMPT  AMOUNT
SHALL  BE  ESTABLISHED  FOR THE SEGMENT. IN THE CASE OF SCHOOL DISTRICTS
WITHIN APPROVED ASSESSING UNITS AS DEFINED IN SECTION  NINETEEN  HUNDRED
ONE  OF  THIS CHAPTER WHICH HAVE ADOPTED THE PROVISIONS OF SECTION NINE-
TEEN HUNDRED THREE OF THIS CHAPTER, THE SCHOOL DISTRICT TAX RATE  TO  BE
USED  FOR THIS PURPOSE SHALL BE THE TAX RATE APPLICABLE TO THE HOMESTEAD
CLASS, AS DEFINED IN ARTICLE NINETEEN OF THIS CHAPTER,  AS  REPORTED  BY
THE SCHOOL DISTRICT.
  (F)  WHERE  THE  PROVISIONS  OF  SUBPARAGRAPH (IV) OF PARAGRAPH (K) OF
SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER  ARE
APPLICABLE,  THE  APPLICABLE  REBATE  AMOUNT  SHALL  BE ONE-THIRD OF THE
OTHERWISE APPLICABLE REBATE AMOUNT SET FORTH IN PARAGRAPH (B) OR (C)  OF
THIS  SUBDIVISION. THE DEPARTMENT SHALL CALCULATE AND CERTIFY THE REBATE
AMOUNTS APPLICABLE IN SUCH CASES, ALONG WITH THE CERTIFICATION  REQUIRED
BY PARAGRAPH (A) OF THIS SUBDIVISION.
  (G)  FOR  THE PURPOSES OF THE TWO THOUSAND ELEVEN--TWO THOUSAND TWELVE
SCHOOL YEAR AND EACH YEAR THEREAFTER, TAX REBATES AUTHORIZED PURSUANT TO
THIS SECTION SHALL APPLY ONLY TO THOSE OWNERS WHO:
  (I) HAVE ATTAINED THE AGE OF SIXTY-FIVE YEARS OR OLDER; AND
  (II) HAVE "AFFILIATED INCOME" AS DEFINED IN PARAGRAPH (B) OF  SUBDIVI-
SION SIX OF SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW EQUAL TO OR
LESS THAN ONE HUNDRED FIFTY THOUSAND DOLLARS.
  S 2. The real property tax law is amended by adding a new section 1307
to read as follows:

A. 5538                             4

  S  1307.  LIMITATIONS  UPON  SCHOOL DISTRICT TAX LEVIES. 1. GENERALLY.
UNLESS OTHERWISE PROVIDED BY LAW, THE AMOUNT OF TAXES THAT MAY BE LEVIED
BY OR ON BEHALF OF  ANY  SCHOOL  DISTRICT,  OTHER  THAN  A  CITY  SCHOOL
DISTRICT  OF A CITY WITH ONE HUNDRED TWENTY-FIVE THOUSAND INHABITANTS OR
MORE,  SHALL NOT EXCEED THE TAX LEVY LIMITATIONS ESTABLISHED PURSUANT TO
SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW.  IT  SHALL  BE
THE  RESPONSIBILITY  OF THE COMMISSIONER OF EDUCATION TO ANNUALLY DETER-
MINE THE TAX LEVY LIMIT OF EACH SCHOOL DISTRICT IN ACCORDANCE  WITH  THE
PROVISIONS OF THIS SECTION.
  2. DEFINITIONS. AS USED IN THIS SECTION:
  (A)  "AVAILABLE  CARRYOVER"  MEANS THE SUM OF THE AMOUNTS BY WHICH THE
TAX LEVY FOR EACH SCHOOL YEAR FROM THE TWO THOUSAND ELEVEN--TWO THOUSAND
TWELVE SCHOOL YEAR THROUGH THE PRIOR SCHOOL YEAR WAS BELOW THE  APPLICA-
BLE TAX LEVY LIMIT FOR SUCH SCHOOL YEAR, IF ANY.
  (B) "CAPITAL LOCAL EXPENDITURES" MEANS THE TAXES ASSOCIATED WITH BUDG-
ETED  EXPENDITURES  RESULTING FROM THE CONSTRUCTION, ACQUISITION, RECON-
STRUCTION, REHABILITATION OR IMPROVEMENT OF SCHOOL BUILDINGS,  INCLUDING
DEBT  SERVICE  AND  LEASE  EXPENDITURES,  SUBJECT TO THE APPROVAL OF THE
QUALIFIED VOTERS WHERE REQUIRED BY LAW.
  (C) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
LOCAL EXPENDITURES, IF ANY.
  (D) "COMING SCHOOL YEAR" MEANS THE SCHOOL  YEAR  FOR  WHICH  TAX  LEVY
LIMITS ARE BEING DETERMINED PURSUANT TO THIS SECTION.
  (E)  "INFLATION FACTOR" MEANS THE PERCENTAGE THAT REPRESENTS THE PROD-
UCT OF ONE HUNDRED AND THE QUOTIENT OF: (I) THE AVERAGE OF THE  NATIONAL
CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE MONTH PERIOD PRECEDING JANUARY FIRST OF THE CURRENT
YEAR MINUS THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED
BY THE UNITED STATES DEPARTMENT OF LABOR  FOR  THE  TWELVE-MONTH  PERIOD
PRECEDING  JANUARY FIRST OF THE PRIOR YEAR, DIVIDED BY: (II) THE AVERAGE
OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES
DEPARTMENT  OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY FIRST
OF THE PRIOR YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO TWO PLACES.
  (F) "LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) FOUR PERCENT;  OR
(II) ONE HUNDRED TWENTY PERCENT OF THE INFLATION FACTOR.
  (G)  "PRIOR  SCHOOL  YEAR" MEANS THE SCHOOL YEAR IMMEDIATELY PRECEDING
THE COMING SCHOOL YEAR.
  (H) "SCHOOL DISTRICT" MEANS  A  COMMON  SCHOOL  DISTRICT,  UNION  FREE
SCHOOL  DISTRICT,  CENTRAL SCHOOL DISTRICT, CENTRAL HIGH SCHOOL DISTRICT
OR A CITY  SCHOOL  DISTRICT  IN  A  CITY  WITH  LESS  THAN  ONE  HUNDRED
TWENTY-FIVE THOUSAND INHABITANTS.
  (I)  "TAX LEVY BASE" MEANS THE AMOUNT OF TAXES A SCHOOL DISTRICT WOULD
BE AUTHORIZED TO LEVY WITHOUT THE ADDITION OF  ANY  AVAILABLE  CARRYOVER
AMOUNT.
  (J)  "TAX  LEVY  LIMIT" MEANS THE AMOUNT OF TAXES A SCHOOL DISTRICT IS
AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT THE
TAX LEVY LIMIT SHALL NOT INCLUDE THE DISTRICT'S  CAPITAL  TAX  LEVY,  IF
ANY.
  3. TAX BASE GROWTH FACTOR. (A) NO LATER THAN MARCH FIRST OF EACH YEAR,
THE  DEPARTMENT SHALL IDENTIFY THOSE SCHOOL DISTRICTS FOR WHICH TAX BASE
GROWTH FACTORS MUST BE DETERMINED FOR THE COMING SCHOOL YEAR, AND  SHALL
NOTIFY  THE  COMMISSIONER OF EDUCATION OF THE TAX BASE GROWTH FACTORS SO
DETERMINED, IF ANY.
  (B) THE DEPARTMENT SHALL CALCULATE A QUANTITY CHANGE FACTOR  FOR  EACH
SCHOOL  DISTRICT  FOR  THE COMING SCHOOL YEAR BASED UPON THE PHYSICAL OR
QUANTITY CHANGE, AS DEFINED BY SECTION TWELVE  HUNDRED  TWENTY  OF  THIS

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CHAPTER,  REPORTED TO THE DEPARTMENT BY THE ASSESSOR OR ASSESSORS PURSU-
ANT TO SECTION FIVE HUNDRED SEVENTY-FIVE OF THIS CHAPTER.  THE  QUANTITY
CHANGE  FACTOR  SHALL SHOW THE PERCENTAGE BY WHICH THE FULL VALUE OF THE
TAXABLE REAL PROPERTY IN THE SCHOOL DISTRICT HAS CHANGED DUE TO PHYSICAL
OR  QUANTITY  CHANGE  BETWEEN  THE SECOND FINAL ASSESSMENT ROLL OR ROLLS
PRECEDING THE FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES ARE TO  BE
LEVIED, AND THE FINAL ASSESSMENT ROLL OR ROLLS IMMEDIATELY PRECEDING THE
FINAL ASSESSMENT ROLL OR ROLLS UPON WHICH TAXES ARE TO BE LEVIED.
  (C)  AFTER  DETERMINING  THE  QUANTITY  CHANGE  FACTOR  FOR  A  SCHOOL
DISTRICT, THE DEPARTMENT SHALL PROCEED AS FOLLOWS:
  (I) IF THE QUANTITY CHANGE FACTOR IS NEGATIVE,  THE  DEPARTMENT  SHALL
NOT DETERMINE A TAX BASE GROWTH FACTOR FOR THE SCHOOL DISTRICT.
  (II)  IF  THE QUANTITY CHANGE FACTOR IS POSITIVE, THE DEPARTMENT SHALL
DETERMINE A TAX BASE GROWTH FACTOR FOR  THE  SCHOOL  DISTRICT  WHICH  IS
EQUAL  TO  THE  QUANTITY CHANGE FACTOR, PROVIDED THAT IN NO CASE SHALL A
TAX BASE GROWTH FACTOR BE IN EXCESS OF TEN PERCENT.
  4. COMPUTATION OF TAX LEVY LIMITS. (A) THE  TAX  LEVY  BASE  FOR  EACH
SCHOOL YEAR SHALL BE DETERMINED AS FOLLOWS:
  (I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR SCHOOL
YEAR.
  (II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT  WERE  RECEIVABLE  IN  THE
PRIOR SCHOOL YEAR.
  (III) SUBTRACT THE CAPITAL TAX LEVY FOR THE PRIOR SCHOOL YEAR, IF ANY.
  (IV) MULTIPLY THE RESULT BY THE LEVY GROWTH FACTOR.
  (V) MULTIPLY THE RESULT BY THE TAX BASE GROWTH FACTOR, IF ANY.
  (B) THE TAX LEVY BASE SHALL BE ADJUSTED BY ADDING THE AVAILABLE CARRY-
OVER, IF ANY, PROVIDED THAT IN NO EVENT SHALL THE AMOUNT OF ADDED CARRY-
OVER  EXCEED  ONE  AND  ONE-HALF  PERCENT  OF THE TAX LEVY FOR THE PRIOR
SCHOOL YEAR.
  (C) THE TAX LEVY LIMIT  FOR  THE  COMING  SCHOOL  YEAR  SHALL  BE  THE
ADJUSTED TAX LEVY BASE, LESS ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN
THE  COMING  SCHOOL  YEAR.  NO  LATER THAN MARCH FIRST OF EACH YEAR, THE
COMMISSIONER OF EDUCATION SHALL CALCULATE THE TAX LEVY  LIMIT  FOR  EACH
SCHOOL  DISTRICT,  AND  SHALL  NOTIFY  EACH  SCHOOL DISTRICT OF THE LEVY
GROWTH FACTOR, THE DISTRICT'S  TAX  BASE  GROWTH  FACTOR,  IF  ANY,  THE
DISTRICT'S TAX LEVY BASE AND THE DISTRICT'S TAX LEVY LIMIT.
  5.  VOTER  UNDERRIDES.  THE  QUALIFIED VOTERS OF A SCHOOL DISTRICT MAY
VOTE TO REDUCE (OR UNDERRIDE) THE LIMITATIONS IMPOSED  BY  THIS  SECTION
FOR  SUCH  SCHOOL  DISTRICT  FOR  THE  COMING  SCHOOL YEAR IN THE MANNER
PROVIDED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION LAW.
  6. REORGANIZED SCHOOL DISTRICTS. WHEN TWO  OR  MORE  SCHOOL  DISTRICTS
REORGANIZE,  THE  COMMISSIONER OF EDUCATION SHALL DETERMINE THE TAX LEVY
LIMIT FOR THE REORGANIZED SCHOOL DISTRICT BASED ON  THE  RESPECTIVE  TAX
LEVY LIMITS OF THE SCHOOL DISTRICTS THAT FORMED THE REORGANIZED DISTRICT
FROM  THE  LAST  SCHOOL  YEAR  IN  WHICH  THEY  WERE SEPARATE DISTRICTS,
PROVIDED THAT IN THE EVENT OF FORMATION OF A  NEW  CENTRAL  HIGH  SCHOOL
DISTRICT,  THE  TAX LEVY LIMITS FOR THE NEW CENTRAL HIGH SCHOOL DISTRICT
AND ITS COMPONENT SCHOOL DISTRICTS SHALL  BE  DETERMINED  IN  ACCORDANCE
WITH A METHODOLOGY PRESCRIBED BY THE COMMISSIONER OF EDUCATION.
  7.  ERRONEOUS LEVIES. IN THE EVENT A SCHOOL DISTRICT'S ACTUAL TAX LEVY
FOR A GIVEN SCHOOL YEAR EXCEEDS THE MAXIMUM  ALLOWABLE  LEVY  AS  ESTAB-
LISHED  PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION
LAW DUE TO CLERICAL OR TECHNICAL ERRORS, THE SCHOOL DISTRICT SHALL PLACE
THE EXCESS AMOUNT OF  THE  LEVY  IN  RESERVE  IN  ACCORDANCE  WITH  SUCH
REQUIREMENTS  AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL USE SUCH

A. 5538                             6

FUNDS AND ANY INTEREST EARNED THEREON TO OFFSET THE  TAX  LEVY  FOR  THE
ENSUING SCHOOL YEAR.
  S  3.  The  tax  law is amended by adding a new section 178 to read as
follows:
  S 178. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. THE  COMMISSIONER  SHALL
ISSUE  THE  LOCAL  PROPERTY  TAX  REBATES AUTHORIZED BY SECTION THIRTEEN
HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW EXCEPT AS PROVIDED  IN  PARA-
GRAPH  (G)  OF  SUBDIVISION THREE OF SUCH SECTION.  FOR PURPOSES OF THIS
SECTION THE REBATE SHALL BE CALCULATED USING THE COMPUTATION FORMULA SET
FORTH IN SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE REAL
PROPERTY TAX LAW.
  2. ON OR BEFORE AUGUST FIFTEENTH EACH YEAR, THE DEPARTMENT, OR  ON  OR
BEFORE  JULY  FIRST EACH YEAR IN THE CASE OF A CITY WITH A POPULATION OF
ONE MILLION OR MORE, THE COMMISSIONER OF FINANCE, SHALL PROVIDE  TO  THE
COMMISSIONER  A  REPORT  IN A MUTUALLY AGREEABLE FORMAT CONCERNING THOSE
PARCELS WHICH SATISFY THE CRITERIA SET FORTH IN SECTION THIRTEEN HUNDRED
SIX-B OF THE REAL PROPERTY TAX LAW.
  3. THE COMMISSIONER IN CONSULTATION, IN THE CASE  OF  A  CITY  WITH  A
POPULATION  OF  ONE  MILLION  OR  MORE,  THE COMMISSIONER OF FINANCE, IS
AUTHORIZED TO DEVELOP PROCEDURES NECESSARY TO PROVIDE FOR  THE  ISSUANCE
OF  LOCAL  PROPERTY TAX REBATES TO QUALIFYING PROPERTY OWNERS, AND THOSE
QUALIFYING PROPERTY OWNERS THAT DID NOT RECEIVE THEM INITIALLY.  IF  THE
COMMISSIONER  IS  NOT SATISFIED THAT THE PROPERTY OWNER IS QUALIFIED FOR
THE LOCAL PROPERTY TAX REBATE, THE COMMISSIONER  SHALL  NOT  ISSUE  SUCH
REBATE.
  4.  WHEN THE PROPER PAYMENT OF A TAX REBATE UNDER THIS SECTION DEPENDS
UPON CONSTRUCTION OF THE MEANING OF THE PROVISIONS OF  SECTION  THIRTEEN
HUNDRED  SIX-B  OF THE REAL PROPERTY TAX LAW (AND ANY RELATED PROVISIONS
OF SUCH LAW) OR INTERPRETATION OF THE TERMS CONTAINED THEREIN, IT  SHALL
BE  THE  RESPONSIBILITY OF THE DEPARTMENT TO PROVIDE THE CONSTRUCTION OR
INTERPRETATION OF ANY SUCH PROVISIONS OR TERMS.
  5. BY DEPOSITING A REBATE ISSUED PURSUANT TO THIS SECTION AND  AUTHOR-
IZED BY SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW, THE
PAYEE  IS  CERTIFYING THAT HE OR SHE IS THE PROPERTY OWNER, AND THAT THE
PRIMARY RESIDENCE OF SUCH PROPERTY OWNER IS NOT SUBJECT  TO  ANY  DELIN-
QUENT SCHOOL TAXES.
  6.  VERIFICATION OF "AFFILIATED INCOME" FOR "MIDDLE CLASS STAR" REBATE
PROGRAM. (A) GENERALLY. THE DETERMINATION OF THE "AFFILIATED INCOME"  OF
PARCELS  FOR  PURPOSES  OF  THE  "MIDDLE  CLASS  STAR" REBATE PROGRAM AS
AUTHORIZED BY SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE
REAL PROPERTY TAX LAW SHALL BE MADE AS PROVIDED BY THIS SECTION.
  (B) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "INCOME" SHALL HAVE THE
SAME MEANING AS SET FORTH IN  SUBPARAGRAPH  (II)  OF  PARAGRAPH  (B)  OF
SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPER-
TY  TAX LAW. THE TERM "AFFILIATED INCOME" SHALL MEAN THE COMBINED INCOME
OF ALL OF THE OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON ON  THE
TAXABLE  STATUS DATE FOR THE ASSESSMENT ROLL USED TO GENERATE THE APPLI-
CABLE SCHOOL TAX BILLS, AND OF ANY OWNERS'  SPOUSES  FILING  JOINTLY  OR
SPOUSES'  RESIDING  PRIMARILY  THEREON  IN  THE CASES OF SPOUSES' FILING
SEPARATE RETURNS ON SUCH TAXABLE STATUS DATE AND SHALL BE DETERMINED  AS
FOLLOWS:
  (I)  FOR  THE  TWO  THOUSAND  ELEVEN--TWO THOUSAND TWELVE SCHOOL YEAR,
AFFILIATED INCOME SHALL BE DETERMINED BASED UPON  THE  PARTIES'  INCOMES
FOR  THE  INCOME TAX YEAR ENDING IN TWO THOUSAND TEN. IN EACH SUBSEQUENT
YEAR, THE APPLICABLE INCOME TAX YEAR SHALL BE ADVANCED BY ONE YEAR.

A. 5538                             7

   (II) THE DEPARTMENT SHALL DETERMINE THE AFFILIATED  INCOME  FOR  EACH
PARCEL  AND SHALL ASSIGN A REBATE AMOUNT FOR EACH PARCEL BASED UPON SUCH
DETERMINATION. IN ANY CASE WHERE AFFILIATED INCOME CANNOT BE DETERMINED,
A REBATE SHALL NOT BE ISSUED.
  7.  NOTIFICATION  REQUIREMENT.  THE  DEPARTMENT SHALL MAIL INFORMATION
CONCERNING THE "MIDDLE CLASS STAR" REBATE PROGRAM TO OWNERS  OF  PARCELS
RECEIVING A BASIC STAR EXEMPTION ON THE ASSESSMENT ROLL USED TO GENERATE
THE  TWO  THOUSAND  ELEVEN--TWO  THOUSAND  TWELVE  SCHOOL TAX BILL. SUCH
NOTIFICATION SHALL EXPLAIN THAT PROPERTY OWNERS MUST  FILE  APPLICATIONS
WITH  THE  DEPARTMENT  IN ORDER TO OBTAIN THE REBATE AVAILABLE UNDER THE
"MIDDLE CLASS STAR" REBATE PROGRAM. SUCH NOTICE  SHALL  FURTHER  EXPLAIN
HOW TO OBTAIN THE APPLICATION.
  8.  APPLICATIONS.  (A)  IN ORDER TO OBTAIN THE BENEFITS OF THE "MIDDLE
CLASS STAR" REBATE PROGRAM, THE PROPERTY OWNER MUST SUBMIT  AN  APPLICA-
TION TO THE DEPARTMENT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND
ELEVEN.    THE APPLICANT SHALL PROVIDE THE DEPARTMENT WITH SUCH INFORMA-
TION AS MAY BE NECESSARY TO DETERMINE THE  PARCEL'S  AFFILIATED  INCOME.
THE  PERSONS OTHER THAN THE APPLICANT WHOSE INCOMES ARE NECESSARY TO THE
DETERMINATION OF THE PARCEL'S AFFILIATED INCOME SHALL BE REFERRED TO  IN
THIS  SECTION  AS  "AFFILIATED PERSONS." RECIPIENTS OF THE ENHANCED STAR
EXEMPTION SHALL NOT FILE AN APPLICATION TO RECEIVE A REBATE. THE DEPART-
MENT SHALL MAIL ENHANCED STAR REBATE RECIPIENTS THEIR REBATES IN A TIME-
LY MANNER.
  (B) IF THE APPLICANT OR ANY AFFILIATED PERSONS WERE  NOT  REQUIRED  TO
FILE  NEW  YORK STATE INCOME TAX RETURNS FOR THE TWO THOUSAND TEN INCOME
TAX YEAR BECAUSE THEIR INCOMES WERE BELOW THE  THRESHOLD  THAT  NECESSI-
TATED SUCH FILING, THE APPLICATION SHALL SO INDICATE.
  (C)  IF  THE  APPLICANT OR ANY AFFILIATED PERSONS WERE NOT REQUIRED TO
FILE NEW YORK STATE INCOME TAX RETURNS FOR THE TWO THOUSAND  TEN  INCOME
TAX  YEAR  BECAUSE THEY DID NOT RESIDE IN NEW YORK STATE IN SUCH TAXABLE
YEAR, THE APPLICATION SHALL SO INDICATE. SUCH PERSONS SHALL PROVIDE WITH
THE APPLICATION ANY INFORMATION THAT THE DEPARTMENT DETERMINES IS NECES-
SARY TO CALCULATE THE PARCEL'S AFFILIATED INCOME UNDER THE "MIDDLE CLASS
STAR" REBATE PROGRAM.
  (D) AFTER TWO THOUSAND ELEVEN, APPLICATIONS  SHALL  BE  REQUIRED  ONLY
WHEN  A  NEW  APPLICATION  FOR  A BASIC STAR EXEMPTION FOR REAL PROPERTY
TAXATION IS FILED PURSUANT TO SECTION FOUR HUNDRED  TWENTY-FIVE  OF  THE
REAL PROPERTY TAX LAW, OR WHEN THERE IS A CHANGE OF OWNERSHIP WHICH DOES
NOT  NECESSITATE  THE  FILING  OF  A  NEW  APPLICATION  FOR A BASIC STAR
EXEMPTION.  IN EITHER INSTANCE, AN APPLICATION SHALL BE SUBMITTED TO THE
DEPARTMENT ON A TIMELY BASIS.
  (E) IF AN APPLICATION FOR A "MIDDLE CLASS  STAR"  REBATE  IS  RECEIVED
AFTER  DECEMBER THIRTY-FIRST, TWO THOUSAND ELEVEN, AN OTHERWISE ELIGIBLE
PROPERTY OWNER SHALL NOT RECEIVE A REBATE FOR SUCH YEAR.  HOWEVER,  SUCH
APPLICATION  SHALL BE CONSIDERED TIMELY FILED FOR A REBATE IN SUBSEQUENT
YEARS PROVIDED THE OWNERSHIP OF THE PARCEL REMAINS UNCHANGED.
  9. PROCESSING OF APPLICATIONS. (A) AFTER RECEIVING A  TIMELY  APPLICA-
TION, THE DEPARTMENT SHALL ATTEMPT TO DETERMINE THE AFFILIATED INCOME OF
THE  PARCEL  AND  THE  REBATE AMOUNT TO WHICH THE PARCEL IS ENTITLED, IF
ANY.
  (B) IN THE CASE OF AN APPLICATION WHICH INDICATES THAT  THE  APPLICANT
AND  ANY  AFFILIATED  PERSONS  WERE  NOT REQUIRED TO FILE NEW YORK STATE
INCOME TAX RETURNS FOR THE TWO THOUSAND  TEN  INCOME  TAX  YEAR  BECAUSE
THEIR  INCOMES WERE BELOW THE THRESHOLD WHICH NECESSITATED THE FILING OF
A STATE INCOME TAX RETURN, THE DEPARTMENT MAY, SUBJECT TO AUDIT, ISSUE A

A. 5538                             8

REBATE EQUAL TO THE HIGHEST AMOUNT AVAILABLE FOR  THAT  SCHOOL  DISTRICT
SEGMENT.
  (C)  IN  THE CASE OF AN APPLICATION WHICH INDICATES THAT THE APPLICANT
AND ANY AFFILIATED PERSONS WERE NOT REQUIRED  TO  FILE  NEW  YORK  STATE
INCOME TAX RETURNS FOR THE TWO THOUSAND TEN INCOME TAX YEAR BECAUSE THEY
DID  NOT  RESIDE  IN  NEW YORK STATE IN SUCH TAXABLE YEAR, THE APPLICANT
SHALL PROVIDE SUCH INFORMATION REGARDING INCOME AS IS REQUESTED  BY  THE
DEPARTMENT.  THE DEPARTMENT SHALL ISSUE A REBATE BASED UPON THE INFORMA-
TION PROVIDED BY THE APPLICANT AND ANY OTHER INFORMATION  TO  WHICH  THE
DEPARTMENT  MAY  HAVE  ACCESS  CONCERNING  THE  INCOME OF SUCH PERSON OR
PERSONS.
  10. RECONSIDERATION OF REBATE AMOUNT. IN THE EVENT THE  DEPARTMENT  IS
UNABLE TO DETERMINE THE AFFILIATED INCOME FOR A PARCEL OR THE DEPARTMENT
DETERMINES  THAT  A REBATE SHALL NOT BE ISSUED FOR A PARCEL, THE DEPART-
MENT SHALL NOTIFY THE APPLICANT OF THAT FACT. A PROPERTY OWNER MAY  SEEK
RECONSIDERATION OF THE REBATE AMOUNT DETERMINATION FOR HIS OR HER PARCEL
ON  THE GROUNDS THAT THE PARCEL'S AFFILIATED INCOME WAS DETERMINED ERRO-
NEOUSLY. A PROPERTY OWNER MAY ALSO SEEK RECONSIDERATION IF NO REBATE WAS
ISSUED BECAUSE THE  PARCEL'S  AFFILIATED  INCOME  WAS  UNDETERMINED.  AN
APPLICATION  FOR  RECONSIDERATION  OF  REBATE  AMOUNT SHALL BE MADE IN A
MANNER PRESCRIBED BY THE DEPARTMENT, AND SHALL BE  ACCOMPANIED  BY  SUCH
DOCUMENTATION  AS  THE DEPARTMENT MAY REQUIRE. SUCH APPLICATION SHALL BE
FILED NO LATER THAN MARCH THIRTY-FIRST,  TWO  THOUSAND  TWELVE.  IF  THE
DEPARTMENT  FINDS  AFTER  REVIEWING  SUCH AN APPLICATION THAT THE REBATE
AMOUNT DETERMINATION FOR A PARCEL SHOULD BE CORRECTED, IT SHALL ISSUE AN
AMENDED OR INITIAL REBATE CHECK. IF THE DEPARTMENT FINDS AFTER REVIEWING
SUCH AN APPLICATION THAT THE REBATE AMOUNT DETERMINATION FOR THE  PARCEL
WAS CORRECTLY DETERMINED, IT SHALL SO NOTIFY THE APPLICANT. SUCH NOTIFI-
CATION  SHALL INCLUDE AN EXPLANATION OF THE DEPARTMENT'S FINDINGS, INDI-
CATE THAT THE APPLICANT HAS THE RIGHT  TO  A  PROCEEDING  UNDER  ARTICLE
SEVENTY-EIGHT  OF  THE  CIVIL  PRACTICE  LAW AND RULES, AND INDICATE THE
STATUTE OF LIMITATIONS ASSOCIATED WITH SUCH  PROCEEDINGS.  SUCH  FINDING
SHALL  BE  SUBJECT TO REVIEW PURSUANT ONLY TO A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
  11. SPECIAL PROVISIONS RELATING TO CO-OPERATIVE  APARTMENT  UNITS  AND
MOBILE  HOMES. THE DEPARTMENT'S DETERMINATION OF AFFILIATED INCOME SHALL
BE MADE WITH RESPECT TO THE TENANT-SHAREHOLDERS OR OWNERS OF THE UNIT IN
QUESTION RATHER THAN OF THE PARCEL.
  12. SUBSEQUENT YEARS. IN EACH YEAR SUBSEQUENT  TO  TWO  THOUSAND  TEN,
AFFILIATED  INCOMES  SHALL CONTINUE TO BE DETERMINED AS PROVIDED BY THIS
SECTION FOR PURPOSES OF THE "MIDDLE CLASS STAR" REBATE  PROGRAM,  EXCEPT
THAT:
  (A)  THE NOTIFICATION REQUIREMENT OF SUBDIVISION SEVEN OF THIS SECTION
SHALL NOT BE APPLICABLE;
  (B) APPLICATIONS SHALL BE REQUIRED ONLY  AS  PROVIDED  IN  SUBDIVISION
EIGHT OF THIS SECTION; AND
  (C) IN EACH SUBSEQUENT YEAR, THE APPLICABLE INCOME TAX YEAR FOR DETER-
MINATIONS  UNDER  THIS  SECTION  SHALL  BE  ADVANCED ONE YEAR. ALL OTHER
APPLICABLE DATES AND DEADLINES WHICH REFERENCE A DATE  IN  TWO  THOUSAND
TEN  SHALL  BE  ADVANCED  AND SHALL BE DEEMED TO REFERENCE DATES IN THAT
SUBSEQUENT YEAR, EXCEPT THAT APPLICATIONS FOR RECONSIDERATION OF  REBATE
AMOUNT   DETERMINATIONS   SHALL   BE   SUBMITTED  NO  LATER  THAN  MARCH
THIRTY-FIRST OF THE ENSUING YEAR.
  13.  CONFIDENTIAL  INFORMATION;  DISCLOSURE  PROHIBITION.  INFORMATION
REGARDING  REBATES ISSUED TO INDIVIDUALS SHALL NOT BE SUBJECT TO DISCLO-
SURE; INCLUDING NAMES, ADDRESSES, AND DOLLAR AMOUNTS  OF  REBATES.    IN

A. 5538                             9

ADDITION, ALL APPLICATIONS SUBMITTED FOR REBATES SHALL NOT BE SUBJECT TO
DISCLOSURE.
  14.  DEADLINE.  IF  ANY  APPLICABLE DEADLINE SHALL FALL ON A SATURDAY,
SUNDAY OR LEGAL HOLIDAY, SUCH DEADLINE SHALL BE  ADVANCED  TO  THE  NEXT
BUSINESS DAY.
  15.  AFFILIATED INCOME BRACKETS; INDEXING. THE DEPARTMENT SHALL ESTAB-
LISH THE AFFILIATED INCOME BRACKETS TO BE  ASSOCIATED  WITH  THE  REBATE
AMOUNTS FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR
AND  EACH  SCHOOL  YEAR  THEREAFTER BY APPLYING THE INFLATION FACTOR SET
FORTH IN THIS SUBDIVISION TO THE FIGURES THAT DEFINED THE INCOME  BRACK-
ETS  THAT  WERE  APPLICABLE  TO  THE  TWO THOUSAND FIFTEEN--TWO THOUSAND
SIXTEEN SCHOOL YEAR, AND ROUNDING EACH RESULT TO THE NEAREST MULTIPLE OF
ONE HUNDRED DOLLARS.  FOR PURPOSES OF THIS SUBDIVISION,  THE  "INFLATION
FACTOR"  FOR  EACH  INCOME BRACKET SHALL BE DETERMINED BY THE PERCENTAGE
INCREASE IN THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL
WORKERS (CPI-W) PUBLISHED BY THE  UNITED  STATES  DEPARTMENT  OF  LABOR,
BUREAU  OF  LABOR STATISTICS, FOR THE THIRD QUARTER OF THE CALENDAR YEAR
PRECEDING THE APPLICABLE SCHOOL YEAR, AS COMPARED TO THE  THIRD  QUARTER
OF  THE  PRIOR  CALENDAR  YEAR. IF A BASE FIGURE AS SO DETERMINED IS NOT
EXACTLY EQUAL TO A MULTIPLE OF ONE HUNDRED DOLLARS, IT SHALL BE  ROUNDED
TO  THE  NEAREST  MULTIPLE  OF  ONE  HUNDRED DOLLARS. IN EACH SUBSEQUENT
SCHOOL YEAR, THE PRIOR YEAR'S INCOME BRACKETS SHALL BE INDEXED USING THE
ABOVE FORMULA WITH EACH YEAR ADVANCED BY ONE YEAR.
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(ss) to read as follows:
  (SS)  MIDDLE  CLASS  CIRCUIT  BREAKER CREDIT. (1) DEFINITIONS. FOR THE
PURPOSES OF THIS SUBSECTION:
  (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE  WHO
OWNS  OR RENTS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES,
AND HAS RESIDED IN SUCH RESIDENTIAL REAL  PROPERTY  FOR  NOT  LESS  THAN
THREE YEARS.
  (B)  "HOUSEHOLD"  OR  "MEMBERS  OF  THE  HOUSEHOLD"  MEANS A QUALIFIED
TAXPAYER OR QUALIFIED TAXPAYERS AND ALL OTHER PERSONS,  NOT  NECESSARILY
RELATED,  WHO  ALL  RESIDE IN THE RESIDENTIAL REAL PROPERTY OWNED BY THE
TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILITIES AND  ACCOM-
MODATIONS;  PROVIDED  THAT  NO  PERSON  MAY BE A MEMBER OF MORE THAN ONE
HOUSEHOLD AT ONE TIME.
  (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF ALL MEMBERS OF THE HOUSEHOLD FOR THE TAXABLE  YEAR  AS  REPORTED  FOR
FEDERAL  INCOME  TAX  PURPOSES,  OR  WHICH WOULD BE REPORTED AS ADJUSTED
GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO  BE  FILED,
WITH  THE  MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF  SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY  OTHERWISE  EXCLUDED  FROM  SUCH AMOUNT; EARNED INCOME FROM SOURCES
WITHOUT THE UNITED  STATES  EXCLUDABLE  FROM  FEDERAL  GROSS  INCOME  BY
SECTION  NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
NOT INCLUDED IN  ADJUSTED  GROSS  INCOME;  NONTAXABLE  STRIKE  BENEFITS;
SUPPLEMENTAL  SECURITY  INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN  SUCH  ADJUSTED  GROSS
INCOME  (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT  AND  VETER-
ANS'  DISABILITY  PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES,  PUBLIC  CORPORATIONS,  OR
POLITICAL  SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS'  COMPEN-

A. 5538                            10

SATION;  THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER  OR  MEMBERS
OF  HIS  OR  HER  HOUSEHOLD.  HOUSEHOLD GROSS INCOME SHALL   NOT INCLUDE
SURPLUS FOODS OR OTHER RELIEF IN KIND OR PAYMENTS  MADE  TO  INDIVIDUALS
BECAUSE  OF  THEIR  STATUS  AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN
PUBLIC LAW 103-286 OR ANY DISABILITY COMPENSATION RECEIVED  BY  VETERANS
ON  ACCOUNT  OF INJURY OR ILLNESS INCURRED OR AGGRAVATED DURING MILITARY
SERVICE IN THE WARS IN AFGHANISTAN AND IRAQ  SINCE  SEPTEMBER  ELEVENTH,
TWO  THOUSAND ONE.  PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY
INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS OF THE  HOUSEHOLD  WHILE
MEMBERS  OF  SUCH  HOUSEHOLD.   FOR FARM FAMILIES EARNING AT LEAST FIFTY
PERCENT OF THEIR INCOME FROM FARMING, "ADJUSTED GROSS INCOME"  SHALL  BE
REPLACED  WITH "MODIFIED ADJUSTED GROSS INCOME" FOR FEDERAL TAX PURPOSES
AS REPORTED ON THE APPLICANT'S FEDERAL AND STATE INCOME TAX RETURNS  FOR
THE APPLICABLE INCOME TAX YEAR.
  (D)  "ADJUSTED  RENT"  MEANS RENT PAID FOR THE RIGHT OF OCCUPANCY OF A
RESIDENCE.
  (E) "REAL PROPERTY TAX EQUIVALENT" MEANS FOR TAXABLE  YEARS  BEGINNING
IN  TWO  THOUSAND  ELEVEN, FIFTEEN PERCENT OF THE ADJUSTED RENT ACTUALLY
PAID IN THE TAXABLE YEAR BY A HOUSEHOLD SOLELY FOR THE RIGHT OF OCCUPAN-
CY OF ITS NEW YORK RESIDENCE FOR THE TAXABLE YEAR. IF (I) A RESIDENCE IS
RENTED TO TWO OR MORE INDIVIDUALS  AS  COTENANTS,  OR  SUCH  INDIVIDUALS
SHARE IN THE PAYMENT OF A SINGLE RENT FOR THE RIGHT OF OCCUPANCY OF SUCH
RESIDENCE,  AND (II) EACH OF SUCH INDIVIDUALS  IS A MEMBER OF  A DIFFER-
ENT HOUSEHOLD, ONE OR MORE OF WHICH INDIVIDUALS SHARES  SUCH  RESIDENCE,
REAL  PROPERTY  TAX EQUIVALENT IS THAT PORTION OF FIFTEEN PERCENT OF THE
ADJUSTED RENT PAID IN THE TAXABLE YEAR WHICH REFLECTS  THAT  PORTION  OF
THE  RENT  ATTRIBUTABLE TO THE QUALIFIED TAXPAYER AND THE MEMBERS OF HIS
OR HER HOUSEHOLD.
  (F) "NET REAL PROPERTY TAX" MEANS THE REAL PROPERTY TAXES ASSESSED  ON
THE  RESIDENTIAL  REAL  PROPERTY  OWNED  AND OCCUPIED BY THE TAXPAYER OR
TAXPAYERS AFTER ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE REAL
PROPERTY TAX LAW, OR ANY REBATE RECEIVED PURSUANT  TO  SECTION  THIRTEEN
HUNDRED SIX-B OF SUCH LAW.
  (2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES  IMPOSED BY THIS ARTICLE, EQUAL TO THIRTY PERCENT OF THE AMOUNT BY
WHICH THE TAXPAYER'S NET REAL PROPERTY TAX OR THE TAXPAYER'S REAL  PROP-
ERTY TAX EQUIVALENT EXCEEDS THE TAXPAYER'S MAXIMUM REAL PROPERTY TAX, AS
DETERMINED BY PARAGRAPH THREE OF THIS SUBSECTION. IF SUCH CREDIT EXCEEDS
THE TAX FOR SUCH TAXABLE YEAR, AS REDUCED BY THE OTHER CREDITS PERMITTED
BY  THIS  ARTICLE,  THE  QUALIFIED  TAXPAYER  MAY RECEIVE, AND THE COMP-
TROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT,  SHALL  PAY  AS  AN
OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX AS SO REDUCED
AND THE AMOUNT OF THE CREDIT. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO
FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE,
A  QUALIFIED  TAXPAYER  MAY  NEVERTHELESS  RECEIVE  AND THE COMPTROLLER,
SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN  OVERPAYMENT
THE FULL AMOUNT OF THE CREDIT, WITHOUT INTEREST.
  (3)  MAXIMUM  REAL  PROPERTY  TAX. A QUALIFIED TAXPAYER'S MAXIMUM REAL
PROPERTY TAX SHALL BE DETERMINED AS FOLLOWS:

HOUSEHOLD GROSS INCOME               MAXIMUM REAL PROPERTY TAX
ONE HUNDRED TWENTY THOUSAND          SEVEN PERCENT OF THE
DOLLARS OR LESS                      HOUSEHOLD GROSS INCOME

A. 5538                            11

MORE THAN ONE HUNDRED TWENTY         SEVEN PERCENT OF ONE HUNDRED TWENTY
THOUSAND DOLLARS, BUT LESS THAN      THOUSAND DOLLARS PLUS EIGHT
OR EQUAL TO ONE HUNDRED SEVENTY-     PERCENT OF HOUSEHOLD GROSS INCOME
FIVE THOUSAND DOLLARS                ABOVE ONE HUNDRED TWENTY THOUSAND
                                     DOLLARS

MORE THAN ONE HUNDRED SEVENTY-       SEVEN PERCENT OF ONE HUNDRED TWENTY
FIVE THOUSAND DOLLARS, BUT LESS      THOUSAND DOLLARS PLUS EIGHT
THAN OR EQUAL TO TWO HUNDRED FIFTY   PERCENT OF FIFTY-FIVE THOUSAND
THOUSAND DOLLARS                     DOLLARS PLUS NINE PERCENT OF
                                     HOUSEHOLD GROSS INCOME ABOVE
                                     ONE HUNDRED SEVENTY-FIVE
                                     THOUSAND DOLLARS

MORE THAN TWO HUNDRED FIFTY          NO LIMITATION.
THOUSAND DOLLARS

  S  5.  Subsection  (e)  of  section  1310  of the tax law, as added by
section 135 of part A of chapter 389 of the laws of 1997, is amended  by
adding a new paragraph 3 to read as follows:
  (3)  NOTWITHSTANDING  THE  SCHEDULE OF CREDIT IN SUBPARAGRAPHS (A) AND
(B) OF PARAGRAPH TWO OF THIS SUBSECTION, STARTING IN TWO THOUSAND ELEVEN
TAXPAYERS WHO:
  (A) ARE SIXTY-FIVE YEARS OR OLDER AS  OF  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND  ELEVEN  AND  FOR  EACH SUBSEQUENT TAX YEAR THE APPLICABLE DATE
SHALL BE ADVANCED BY ONE YEAR; AND
  (B) WHERE THE HOUSEHOLD GROSS INCOME IS LESS THAN  ONE  HUNDRED  FIFTY
THOUSAND  DOLLARS SHALL INSTEAD BE ENTITLED TO A CREDIT OF THREE HUNDRED
THIRTY-FIVE DOLLARS FOR MARRIED INDIVIDUALS  FILING  JOINT  RETURNS  AND
SURVIVING  SPOUSES  AND  ONE HUNDRED SIXTY-SEVEN DOLLARS AND FIFTY CENTS
FOR ALL OTHERS, INCLUDING AN UNMARRIED INDIVIDUAL, A HEAD  OF  HOUSEHOLD
OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN. THE REBATE AMOUNTS AND
INCOME  LIMITATIONS SHALL BE ADJUSTED ANNUALLY BY APPLYING THE INFLATION
FACTOR SET FORTH IN PARAGRAPH TWO OF THIS SUBSECTION.
  S 6. Subdivision (c) of section 11-1706 of the administrative code  of
the  city  of New York, as added by section 137 of part A of chapter 389
of the laws of 1997, is amended by adding a new paragraph 3 to  read  as
follows:
  (3)  NOTWITHSTANDING  THE  SCHEDULE OF CREDIT IN SUBPARAGRAPHS (A) AND
(B) OF PARAGRAPH TWO OF THIS SUBDIVISION, STARTING IN TWO THOUSAND ELEV-
EN TAXPAYERS WHO:
  (A) ARE SIXTY-FIVE YEARS OR OLDER AS  OF  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND  ELEVEN  AND  FOR  EACH SUBSEQUENT TAX YEAR THE APPLICABLE DATE
SHALL BE ADVANCED BY ONE YEAR; AND
  (B) WHERE THE HOUSEHOLD GROSS INCOME IS LESS THAN  ONE  HUNDRED  FIFTY
THOUSAND  DOLLARS SHALL INSTEAD BE ENTITLED TO A CREDIT OF THREE HUNDRED
THIRTY-FIVE DOLLARS FOR MARRIED INDIVIDUALS  FILING  JOINT  RETURNS  AND
SURVIVING  SPOUSES  AND  ONE HUNDRED SIXTY-SEVEN DOLLARS AND FIFTY CENTS
FOR ALL OTHERS, INCLUDING AN UNMARRIED INDIVIDUAL, A HEAD  OF  HOUSEHOLD
OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN. THE REBATE AMOUNTS AND
INCOME  LIMITATIONS SHALL BE ADJUSTED ANNUALLY BY APPLYING THE INFLATION
FACTOR SET FORTH IN PARAGRAPH TWO OF THIS SUBDIVISION.
  S 7. Section 1608 of the education law, as amended  by  section  5  of
part  A  of  chapter  436  of  the laws of 1997, subdivisions 2 and 4 as
amended by chapter 640 of the laws of 2008, subdivision 7 as amended  by
section 4 of part H of chapter 83 of the laws of 2002 and paragraph a of

A. 5538                            12

subdivision  7 as amended by chapter 238 of the laws of 2007, is amended
to read as follows:
  S  1608.  Estimated expenses for ensuing year. 1. It shall be the duty
of the trustees of each common school district to present at the  annual
budget  hearing  a  detailed statement in writing of the amount of money
which will be required for the ensuing year for school purposes,  speci-
fying the several purposes and the amount for each.  WHERE A PROPOSITION
TO UNDERRIDE A TAX LEVY LIMITATION HAS BEEN APPROVED PURSUANT TO SECTION
TWO THOUSAND TWENTY-THREE-A OF THIS TITLE, THE TRUSTEES SHALL PRESENT AT
THE  ANNUAL  BUDGET  HEARING  A  BUDGET  THAT COMPLIES WITH THE APPROVED
UNDERRIDE PROPOSITION. The amount for each purpose  estimated  necessary
for  payments  to  boards  of  cooperative educational services shall be
shown in full, with no deduction of estimated state aid. The  amount  of
state aid provided and its percentage relationship to the total expendi-
tures  shall  also  be  shown.  This  section  shall not be construed to
prevent the trustees from presenting such statement at a budget  hearing
held  not less than seven nor more than fourteen days prior to a special
meeting called for the purpose, nor from presenting a supplementary  and
amended statement or estimate at any time.
  2.  Such  statement  shall be completed at least seven days before the
budget hearing at which it is to be presented and copies  thereof  shall
be  prepared and made available, upon request and at the school district
offices, at any public library or free association  library  within  the
district  and  on the school district's internet website, if one exists,
to residents within the district during  the  period  of  fourteen  days
immediately  preceding  the  annual  meeting  [and  election  or special
district meeting at which the budget vote will occur] and at such  meet-
ing or hearing. The board shall also as a part of the notice required by
section  two  thousand  three of this [chapter] TITLE give notice of the
date, time and place of the budget hearing  and  that  a  copy  of  such
statement  may  be  obtained  by  any  resident  in the district at each
schoolhouse in the district in which school is maintained during certain
designated hours on each day other than a Saturday,  Sunday  or  holiday
during  the  fourteen days immediately preceding such meeting. The board
shall include notice of the availability of such statement at least once
during the school year in any district-wide mailing distributed.
  3. Commencing with the proposed budget for the nineteen hundred  nine-
ty-seven--ninety-eight  school  year,  such  proposed budget shall be in
plain language and shall be consistent with regulations  promulgated  by
the  commissioner  pursuant  to  subdivision twenty-six of section three
hundred five of this chapter. Categorization of and format for  revenue,
including  payments in lieu of taxes, property tax refunds from certior-
ari proceedings, expenditure, transfer, and fund balance information and
changes in such data from the prior year and, in the case of  [a  resub-
mitted or] AN amended budget, changes in such information from the prior
year's submitted budget, shall be complete and accurate and set forth in
such a manner as to best promote public comprehension and readability.
  4.  Commencing with the proposed budget for the nineteen hundred nine-
ty-eight--ninety-nine  school  year,  such  proposed  budget  shall   be
presented  in three components: a program component, a capital component
and an administrative component which shall be separately delineated  in
accordance  with regulations of the commissioner after consultation with
local school district  officials.  The  administrative  component  shall
include,  but  need not be limited to, office and central administrative
expenses, traveling expenses and all compensation, salaries and benefits
of all school administrators and supervisors, including business  admin-

A. 5538                            13

istrators,  superintendents  of schools and deputy, assistant, associate
or other superintendents under  all  existing  employment  contracts  or
collective  bargaining  agreements,  any and all expenditures associated
with  the  operation  of the office of trustee or board of trustees, the
office of the superintendent of  schools,  general  administration,  the
school  business office, consulting costs not directly related to direct
student services and programs, planning  and  all  other  administrative
activities. The program component shall include, but need not be limited
to, all program expenditures of the school district, including the sala-
ries  and benefits of teachers and any school administrators or supervi-
sors who spend a majority of their time performing teaching duties,  and
all  transportation  operating  expenses.    The capital component shall
include, but need not be limited to, all  transportation  capital,  debt
service,  and  lease expenditures; costs resulting from judgments in tax
certiorari proceedings or the payment of awards  from  court  judgments,
administrative  orders or settled or compromised claims; and all facili-
ties costs of the school district, including facilities  lease  expendi-
tures,  the  annual  debt  service  and  total  debt  for all facilities
financed by bonds and notes of the school district,  and  the  costs  of
construction, acquisition, reconstruction, rehabilitation or improvement
of  school  buildings, provided that such budget shall include a rental,
operations and maintenance section that includes base rent costs,  total
rent  costs, operation and maintenance charges, cost per square foot for
each facility leased by the school district, and any  and  all  expendi-
tures   associated   with   custodial  salaries  and  benefits,  service
contracts, supplies, utilities, and maintenance and  repairs  of  school
facilities.  [For  the  purposes  of the development of a budget for the
nineteen hundred ninety-eight--ninety-nine school year, the  trustee  or
board  of  trustees  shall  separate the district's program, capital and
administrative costs for the nineteen hundred ninety-seven--ninety-eight
school year in the manner as if  the  budget  for  such  year  had  been
presented in three components.]
  5.  The  trustee or board of trustees shall append to the statement of
estimated expenditures a detailed statement of the total compensation to
be paid to the superintendent of schools, and any assistant or associate
superintendents of schools in  the  ensuing  school  year,  including  a
delineation  of  the salary, annualized cost of benefits and any in-kind
or other form of remuneration. The trustees shall also append a list  of
all  other  school  administrators and supervisors, if any, whose annual
salary will be eighty-five thousand  dollars  or  more  in  the  ensuing
school year, with the title of their positions and annual salary identi-
fied;  provided  however,  that  the commissioner may adjust such salary
level to reflect increases in administrative salaries after June thirti-
eth, nineteen hundred ninety-eight. The trustees shall submit a copy  of
such  list  and  statement, in a form prescribed by the commissioner, of
compensation to the commissioner within five days after  their  prepara-
tion.  The  commissioner shall compile such data, together with the data
submitted pursuant to subdivision three  of  section  seventeen  hundred
sixteen  of  this  [chapter] TITLE, into a single statewide compilation,
which shall be made available to  the  governor,  the  legislature,  and
other interested parties upon request.
  6.  Each  year, the board of education shall prepare a school district
report card, pursuant to regulations of the commissioner, and shall make
it publicly available by transmitting it to local newspapers of  general
circulation, appending it to copies of the proposed budget made publicly
available  as  required  by law, making it available for distribution at

A. 5538                            14

the annual meeting, and otherwise disseminating it as  required  by  the
commissioner.  Such  report  card shall include measures of the academic
performance of the school district, on a school  by  school  basis,  and
measures of the fiscal performance of the district, as prescribed by the
commissioner.  Pursuant  to  regulations of the commissioner, the report
card shall also compare these measures to  statewide  averages  for  all
public  schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report  card  shall
include,  at a minimum, any information on the school district regarding
pupil performance and expenditure per pupil required to be  included  in
the  annual  report  by  the regents to the governor and the legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information required by the commissioner. School districts  (i)  identi-
fied  as  having  fifteen  percent  or more of their students in special
education, or (ii) which have fifty percent or more  of  their  students
with  disabilities  in  special  education  programs  or  services sixty
percent or more of the school day in a general  education  building,  or
(iii)  which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate  educa-
tional  settings  shall  indicate  on  their school district report card
their respective percentages as defined in this [subparagraph] PARAGRAPH
and [subparagraphs] PARAGRAPHS (i) and (ii) of this [paragraph] SUBDIVI-
SION as compared to the statewide average.
  7. a. Each year, commencing with the proposed budget for the two thou-
sand--two thousand one school year, the trustee  or  board  of  trustees
shall prepare a property tax report card, pursuant to regulations of the
commissioner, and shall make it publicly available by transmitting it to
local  newspapers  of general circulation, appending it to copies of the
proposed budget made publicly available as required by  law,  making  it
available  for  distribution at the annual [meeting] BUDGET HEARING, and
otherwise disseminating it as required by the commissioner. Such  report
card shall include: (i) the amount of total spending and total estimated
school  tax  levy that would result from adoption of the proposed budget
and the percentage increase or decrease  in  total  spending  and  total
school tax levy from the school district budget for the preceding school
year;  and  (ii)  THE DISTRICT'S TAX LEVY LIMIT AND TAX LEVY BASE DETER-
MINED PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN OF  THE  REAL  PROPERTY
TAX LAW, THE TAX LEVY PROPOSED BY THE DISTRICT, AND THE PROPOSED CAPITAL
TAX  LEVY,  IF  ANY;  AND  (III) the projected enrollment growth for the
school year for which the budget is prepared, and the percentage  change
in  enrollment  from the previous year; and [(iii)]  (IV) the percentage
increase in the consumer price index, as defined in paragraph c of  this
subdivision;  and  [(iv)] (V) the projected amount of the unappropriated
unreserved fund balance that will be retained if the proposed budget  is
adopted, the projected amount of the reserved fund balance, the project-
ed  amount  of  the  appropriated  fund  balance,  the percentage of the
proposed budget that the unappropriated unreserved fund balance  repres-
ents,  the actual unappropriated unreserved fund balance retained in the
school district budget for the preceding school year, and the percentage
of the school district budget for the preceding  school  year  that  the
actual unappropriated unreserved fund balance represents.
  b.  A  copy  of  the  property tax report card prepared for the annual
[district meeting] BUDGET HEARING shall be submitted to  the  department
in  the  manner  prescribed by the department by the end of the business
day next following approval of the report card by the trustee  or  board
of  trustees,  but no later than twenty-four days prior to the statewide

A. 5538                            15

uniform voting day. The department  shall  compile  such  data  for  all
school  districts  [whose budgets are subject to a vote of the qualified
voters] SUBJECT TO A TAX LEVY LIMITATION PURSUANT  TO  SECTION  THIRTEEN
HUNDRED  SEVEN OF THE REAL PROPERTY TAX LAW and shall make such compila-
tion available electronically at least ten days prior to  the  statewide
uniform voting day.
  c.  For  purposes  of  this  subdivision,  "percentage increase in the
consumer price index" shall mean  the  percentage  that  represents  the
product  of  one  hundred  and  the  quotient of: (i) the average of the
national consumer price indexes determined by the United States  depart-
ment of labor for the twelve-month period preceding January first of the
current  year  minus  the average of the national consumer price indexes
determined by the United States department of labor for the twelve-month
period preceding January first of the prior year, divided  by  (ii)  the
average  of the national consumer price indexes determined by the United
States department of labor for the twelve-month period preceding January
first of the prior year, with the result expressed as a decimal  to  two
places.
  S  8.  Section  1716  of the education law, as amended by section 7 of
part A of chapter 436 of the laws of  1997,  subdivisions  2  and  4  as
amended  by chapter 640 of the laws of 2008, subdivision 7 as amended by
section 5 of part H of chapter 83 of the laws of 2002 and paragraph a of
subdivision 7 as amended by chapter 238 of the laws of 2007, is  amended
to read as follows:
  S  1716.  Estimated expenses for ensuing year. 1. It shall be the duty
of the board of education of each district  to  present  at  the  annual
budget  hearing  a  detailed statement in writing of the amount of money
which will be required for the ensuing year for school purposes,  speci-
fying the several purposes and the amount for each.  WHERE A PROPOSITION
TO UNDERRIDE A TAX LEVY LIMITATION HAS BEEN APPROVED PURSUANT TO SECTION
TWO  THOUSAND TWENTY-THREE-A OF THIS TITLE, THE BOARD OF EDUCATION SHALL
PRESENT AT THE ANNUAL BUDGET HEARING A BUDGET  THAT  COMPLIES  WITH  THE
APPROVED  UNDERRIDE  PROPOSITION.  The amount for each purpose estimated
necessary for payments to boards  of  cooperative  educational  services
shall  be  shown  in full, with no deduction of estimated state aid. The
amount of state aid provided and  its  percentage  relationship  to  the
total  expenditures  shall  also  be  shown.  This  section shall not be
construed to prevent the board from presenting such statement at a budg-
et hearing held not less than seven nor more than fourteen days prior to
a special meeting called for the purpose, nor from presenting a  supple-
mentary and amended statement or estimate at any time.
  2.  Such  statement  shall be completed at least seven days before the
budget hearing at which it is to be presented and copies  thereof  shall
be  prepared and made available, upon request and at the school district
offices, at any public library or free association  library  within  the
district  and  on the school district's internet website, if one exists,
to residents within the district during  the  period  of  fourteen  days
immediately  preceding  the  annual  meeting  [and  election  or special
district meeting at which the budget vote will occur] and at such  meet-
ing or hearing. The board shall also as a part of the notice required by
section  two  thousand  four  of this [chapter] TITLE give notice of the
date, time and place of the budget hearing  and  that  a  copy  of  such
statement  may  be  obtained  by  any  resident  in the district at each
schoolhouse in the district in which school is maintained during certain
designated hours on each day other than a Saturday,  Sunday  or  holiday
during  the  fourteen days immediately preceding such meeting. The board

A. 5538                            16

shall include notice of the availability of such statement at least once
during the school year in any district-wide mailing distributed.
  3.  Commencing with the proposed budget for the nineteen hundred nine-
ty-seven--ninety-eight school year, such proposed  budget  shall  be  in
plain  language  and shall be consistent with regulations promulgated by
the commissioner pursuant to subdivision  twenty-six  of  section  three
hundred  five of this chapter. Categorization of and format for revenue,
including payments in lieu of taxes, property tax refunds from  certior-
ari proceedings, expenditure, transfer, and fund balance information and
changes  in  such data from the prior year and, in the case of [a resub-
mitted or] AN amended budget, changes in such information from the prior
year submitted budget, shall be complete and accurate and set  forth  in
such a manner as to best promote public comprehension and readability.
  4.  Commencing with the proposed budget for the nineteen hundred nine-
ty-eight--ninety-nine  school  year,  such  proposed  budget  shall   be
presented  in three components: a program component, a capital component
and an administrative component which shall be separately delineated  in
accordance  with regulations of the commissioner after consultation with
local school district  officials.  The  administrative  component  shall
include,  but  need not be limited to, office and central administrative
expenses, traveling expenses and all compensation, salaries and benefits
of all school administrators and supervisors, including business  admin-
istrators,  superintendents  of schools and deputy, assistant, associate
or other superintendents under  all  existing  employment  contracts  or
collective  bargaining  agreements,  any and all expenditures associated
with the operation of the board of education, the office of  the  super-
intendent  of  schools,  general  administration,  the  school  business
office, consulting costs not directly related to direct student services
and programs, planning and all other  administrative  activities.    The
program component shall include, but need not be limited to, all program
expenditures of the school district, including the salaries and benefits
of  teachers  and  any  school administrators or supervisors who spend a
majority of their time performing teaching duties, and  all  transporta-
tion  operating  expenses. The capital component shall include, but need
not be limited to, all transportation capital, debt service,  and  lease
expenditures;   costs   resulting   from  judgments  in  tax  certiorari
proceedings or the payment of awards from court  judgments,  administra-
tive  orders  or settled or compromised claims; and all facilities costs
of the school district, including  facilities  lease  expenditures,  the
annual  debt service and total debt for all facilities financed by bonds
and notes of the school district, and the costs of construction,  acqui-
sition,  reconstruction,  rehabilitation or improvement of school build-
ings, provided that such budget shall include a rental,  operations  and
maintenance  section  that  includes  base rent costs, total rent costs,
operation and maintenance charges, cost per square foot for each facili-
ty leased by the school district, and any and all  expenditures  associ-
ated  with custodial salaries and benefits, service contracts, supplies,
utilities, and maintenance and repairs of school  facilities.  [For  the
purposes  of  the development of a budget for the nineteen hundred nine-
ty-eight--ninety-nine school year, the board of education shall separate
the district's program, capital and administrative costs for  the  nine-
teen  hundred ninety-seven--ninety-eight school year in the manner as if
the budget for such year had been presented in three components.]
  5. The board of education shall append to the statement  of  estimated
expenditures  a  detailed statement of the total compensation to be paid
to the superintendent of schools, and any assistant or associate  super-

A. 5538                            17

intendents  of  schools  in the ensuing school year, including a deline-
ation of the salary, annualized cost of  benefits  and  any  in-kind  or
other  form  of  remuneration. The board shall also append a list of all
other school administrators and supervisors, if any, whose annual salary
will be eighty-five thousand dollars or more in the ensuing school year,
with the title of their positions and annual salary identified; provided
however,  that  the commissioner may adjust such salary level to reflect
increases in administrative  salaries  after  June  thirtieth,  nineteen
hundred ninety-eight. The board of education shall submit a copy of such
list and statement, in a form prescribed by the commissioner, of compen-
sation to the commissioner within five days after their preparation. The
commissioner  shall  compile such data, together with the data submitted
pursuant to subdivision four of section sixteen hundred  eight  of  this
[chapter]  TITLE,  into  a  single statewide compilation, which shall be
made available to the governor, the legislature,  and  other  interested
parties upon request.
  6.  Each  year, the board of education shall prepare a school district
report card, pursuant to regulations of the commissioner, and shall make
it publicly available by transmitting it to local newspapers of  general
circulation, appending it to copies of the proposed budget made publicly
available  as  required  by law, making it available for distribution at
the annual meeting, and otherwise disseminating it as  required  by  the
commissioner.  Such  report  card shall include measures of the academic
performance of the school district, on a school  by  school  basis,  and
measures of the fiscal performance of the district, as prescribed by the
commissioner.  Pursuant  to  regulations of the commissioner, the report
card shall also compare these measures to  statewide  averages  for  all
public  schools, and statewide averages for public schools of comparable
wealth and need, developed by the commissioner. Such report  card  shall
include,  at a minimum, any information of the school district regarding
pupil performance and expenditure per pupil required to be  included  in
the  annual  report  by  the regents to the governor and the legislature
pursuant to section two hundred fifteen-a of this chapter; and any other
information required by the commissioner. School districts  (i)  identi-
fied  as  having  fifteen  percent  or more of their students in special
education, or (ii) which have fifty percent or more  of  their  students
with  disabilities  in  special  education  programs  or  services sixty
percent or more of the school day in a general  education  building,  or
(iii)  which have eight percent or more of their students with disabili-
ties in special education programs in public or private separate  educa-
tional  settings  shall  indicate  on  their school district report card
their respective percentages as defined in this paragraph and paragraphs
(i) and (ii) of this subdivision as compared to the statewide average.
  7. a. Each year, commencing with the proposed budget for the two thou-
sand--two thousand one school year, the board of education shall prepare
a property tax report card, pursuant to regulations of the commissioner,
and shall make it publicly available by transmitting it to local newspa-
pers of general circulation, appending it  to  copies  of  the  proposed
budget  made  publicly available as required by law, making it available
for distribution at the annual [meeting] BUDGET HEARING,  and  otherwise
disseminating it as required by the commissioner. Such report card shall
include: (i) the amount of total spending and total estimated school tax
levy  that  would  result  from  adoption of the proposed budget and the
percentage increase or decrease in total spending and total  school  tax
levy  from the school district budget for the preceding school year; and
(ii) THE DISTRICT'S TAX LEVY LIMIT AND TAX LEVY BASE DETERMINED PURSUANT

A. 5538                            18

TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW, AND  THE
TAX LEVY PROPOSED BY THE DISTRICT, AND THE PROPOSED CAPITAL TAX LEVY, IF
ANY;  AND  (III) the projected enrollment growth for the school year for
which  the  budget  is prepared, and the percentage change in enrollment
from the previous year; and [(iii)] (IV) the percentage increase in  the
consumer price index, as defined in paragraph c of this subdivision; and
[(iv)]  (V)  the  projected amount of the unappropriated unreserved fund
balance that will be retained if the proposed  budget  is  adopted,  the
projected  amount  of the reserved fund balance, the projected amount of
the appropriated fund balance, the percentage  of  the  proposed  budget
that  the  unappropriated unreserved fund balance represents, the actual
unappropriated unreserved fund balance retained in the  school  district
budget  for  the preceding school year, and the percentage of the school
district budget for the preceding school year that the  actual  unappro-
priated unreserved fund balance represents.
  b.  A  copy  of  the  property tax report card prepared for the annual
[district meeting] BUDGET HEARING shall be submitted to  the  department
in  the  manner  prescribed by the department by the end of the business
day next following approval of the report card by the  board  of  educa-
tion,  but no later than twenty-four days prior to the statewide uniform
voting day.   The department shall compile  such  data  for  all  school
districts  [whose budgets are subject to a vote of the qualified voters]
SUBJECT TO A TAX LEVY LIMITATION PURSUANT TO  SECTION  THIRTEEN  HUNDRED
SEVEN  OF  THE  REAL  PROPERTY  TAX  LAW and shall make such compilation
available electronically at  least  ten  days  prior  to  the  statewide
uniform voting day.
  c.  For  purposes  of  this  subdivision,  "percentage increase in the
consumer price index" shall mean  the  percentage  that  represents  the
product  of  one  hundred  and  the  quotient of: (i) the average of the
national consumer price indexes determined by the United States  depart-
ment of labor for the twelve-month period preceding January first of the
current  year  minus  the average of the national consumer price indexes
determined by the United States department of labor for the twelve-month
period preceding January first of the prior year, divided  by  (ii)  the
average  of the national consumer price indexes determined by the United
States department of labor for the twelve-month period preceding January
first of the prior year, with the result expressed as a decimal  to  two
places.
  S  9.  Section  2008  of  the education law is amended by adding a new
subdivision 3 to read as follows:
  3. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  TO  THE  CONTRARY,  IT
SHALL  NOT  BE  WITHIN  THE POWERS OF THE VOTERS OF A SCHOOL DISTRICT TO
SUBMIT A PROPOSITION THAT REQUIRES THE EXPENDITURE  OF  MONEY,  PROVIDED
THAT  THE  VOTERS  MAY  SUBMIT A TAX LEVY LIMIT UNDERRIDE PROPOSITION AS
AUTHORIZED  PURSUANT  TO  SUBDIVISION  TWO  OF  SECTION   TWO   THOUSAND
TWENTY-THREE-A OF THIS PART OR A PROPOSITION TO CHANGE THE MILEAGE LIMI-
TATIONS  ON  TRANSPORTATION  PURSUANT TO SUBDIVISION NINETEEN OF SECTION
TWO THOUSAND TWENTY-ONE OF THIS PART.
  S 10. Section 2022 of the education law, as amended by section  23  of
part  A  of  chapter  436  of  the laws of 1997, subdivisions 1 and 3 as
amended by section 8 of part C of chapter 58 of the laws of 1998, subdi-
vision 2-a as amended by section 3 of part A of chapter 60 of  the  laws
of  2000, paragraph b of subdivision 2-a as amended by section 5 of part
W of chapter 57 of the laws of 2008, subdivision 4 as amended by section
7 of part M of chapter 57 of the laws of 2005 and subdivision 6 as added
by chapter 61 of the laws of 2003, is amended to read as follows:

A. 5538                            19

  S 2022. [Vote on] ADOPTION OF school district budgets  [and  on  the];
ANNUAL  DISTRICT  MEETING  AND  election of school district trustees and
board of education members. 1. Notwithstanding any law,  rule  or  regu-
lation  to  the  contrary,  the  ANNUAL DISTRICT MEETING AND election of
trustees or members of the board of education, and the TAX LEVY PROPOSI-
TION  vote  [upon  the  appropriation of the necessary funds to meet the
estimated expenditures,] in  any  common  school  district,  union  free
school district, central school district or central high school district
shall  be held [at the annual meeting and election] on the third Tuesday
in May, provided, however, that such  election  shall  be  held  on  the
second  Tuesday  in  May  if  the commissioner at the request of a local
school board certifies no later than  March  first  that  such  election
would  conflict  with religious observances. [When such election or vote
is taken by recording the ayes and noes of the qualified voters  attend-
ing, a majority of the qualified voters present and voting, by a hand or
voice  vote,  may determine to take up the question of voting the neces-
sary funds to meet the estimated expenditures for a specific item  sepa-
rately,  and  the  qualified  voters present and voting may increase the
amount of any estimated expenditures or  reduce  the  same,  except  for
teachers'   salaries,  and  the  ordinary  contingent  expenses  of  the
schools.] The sole trustee, board of trustees or board of  education  of
every  common,  union  free, central or central high school district and
every city school district to which this article applies  shall  hold  a
budget  hearing not less than seven nor more than fourteen days prior to
the annual meeting and election [or special district meeting at which  a
school  budget  vote  will  occur], and shall prepare and present to the
voters at such budget hearing a proposed school district budget for  the
ensuing  school year.   IF THE QUALIFIED VOTERS HAVE APPROVED A TAX LEVY
PROPOSITION OR UNDERRIDE PROPOSITION  IN  ACCORDANCE  WITH  SECTION  TWO
THOUSAND  TWENTY-THREE-A  OF THIS PART, SUCH TRUSTEES OR BOARD OF EDUCA-
TION SHALL ADOPT A BUDGET THAT COMPLIES WITH SUCH PROPOSITION.    IF  NO
TAX  LEVY  PROPOSITION OR UNDERRIDE PROPOSITION HAS BEEN APPROVED BY THE
QUALIFIED VOTERS, THEN THE TRUSTEES OR BOARD OF EDUCATION SHALL ADOPT  A
BUDGET THAT REQUIRES A TAX LEVY, EXCLUDING ANY CAPITAL TAX LEVY, THAT IS
NO  GREATER  THAN THE TAX LEVY BASE DETERMINED PURSUANT TO SECTION THIR-
TEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW.
  2. [Except as provided in subdivision four of this  section,  nothing]
NOTHING  in  this section shall preclude the trustees or board of educa-
tion, in their discretion, from submitting additional items of  expendi-
ture  to  the voters for approval as separate propositions or the voters
from submitting propositions pursuant to [section] SECTIONS two thousand
eight and two thousand thirty-five of this [article] PART.
  2-a. Every common, union free, central, central high  school  district
and  city  school  district  to  which this article applies shall mail a
school budget notice to all qualified  voters  of  the  school  district
after  the  date of the budget hearing, but no later than six days prior
to the annual meeting and election [or special district meeting at which
a school budget vote will occur]. The school budget notice shall compare
the percentage increase or decrease in total spending under the proposed
budget over total spending under the school district budget adopted  for
the current school year, with the percentage increase or decrease in the
consumer  price  index,  from  January first of the prior school year to
January first of the current school year, and  shall  also  include  the
[information  required  by  paragraphs  a and b of this subdivision. The
notice shall also set forth the date, time and place of the school budg-
et vote, in the  same  manner  as  in  the  notice  of  annual  meeting]

A. 5538                            20

DISTRICT'S  TAX  LEVY  LIMIT  AND  TAX  LEVY BASE DETERMINED PURSUANT TO
SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW, AND THE TAX
LEVY PROPOSED BY THE DISTRICT, AND THE PROPOSED  CAPITAL  TAX  LEVY,  IF
ANY. Such notice shall be in a form prescribed by the commissioner.
  [a.  Commencing with the proposed budget for the two thousand one--two
thousand two school year, such notice shall also include  a  description
of how total spending and the tax levy resulting from the proposed budg-
et would compare with a projected contingency budget adopted pursuant to
section  two  thousand  twenty-three of this article, assuming that such
contingency budget is adopted on  the  same  day  as  the  vote  on  the
proposed  budget.  Such  comparison  shall  be in total and by component
(program, capital and administrative), and shall include a statement  of
the assumptions made in estimating the projected contingency budget.
  b.]  Commencing  with the proposed budget for the two thousand eight--
two thousand nine school year, such notice  shall  also  include,  in  a
format  prescribed  by  the commissioner, an estimate of the tax savings
that would be available to an eligible homeowner under the basic  school
tax  relief  (STAR) exemption authorized by section four hundred twenty-
five of the real property tax law if the proposed budget  were  adopted.
Such  estimate shall be made in the manner prescribed by the commission-
er, in consultation with the office of real property services.
  3. In all elections for trustees or members of boards of education  or
votes ON PROPOSITIONS involving the expenditure of money, or authorizing
the  levy  of  taxes,  OR  VOTES ON PROPOSITIONS TO UNDERRIDE A TAX LEVY
LIMITATION PURSUANT TO SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART,
the vote thereon shall be by ballot, or, in school districts that  prior
to  nineteen  hundred  ninety-eight  conducted  their vote at the annual
meeting, may be ascertained by taking and recording the ayes and noes of
such qualified voters attending and voting at such district meetings.
  4. [In the event that the original proposed budget is not approved  by
the voters, the sole trustee, trustees or board of education may adopt a
final budget pursuant to subdivision five of this section or resubmit to
the  voters  the  original  or  a revised budget pursuant to subdivision
three of section two thousand seven of this part.  Upon  one  defeat  of
such  resubmitted  budget, the sole trustee, trustees or board of educa-
tion shall adopt a final budget pursuant to  subdivision  five  of  this
section.]  Notwithstanding  any  other provision of law to the contrary,
[the school district budget for any school year, or  any  part  of  such
budget  or] any propositions involving the expenditure of money for such
school year shall not be submitted for a vote of  the  qualified  voters
more than twice.
  [5.  If  the  qualified  voters  fail  to  approve the proposed school
district budget upon resubmission or upon a determination not to  resub-
mit  for a second vote pursuant to subdivision four of this section, the
sole trustee, trustees or board of education, after applying thereto the
public school moneys and other moneys received or  to  be  received  for
that purpose, shall levy a tax for the sum necessary for teachers' sala-
ries  and  other  ordinary  contingent  expenses  in accordance with the
provisions of this subdivision and section two thousand twenty-three  of
this article.
  6. Notwithstanding the provisions of subdivision four of section eigh-
teen  hundred  four and subdivision five of section nineteen hundred six
of this title, subdivision one of section two thousand two of this arti-
cle, subdivision one of this section, subdivision two of  section  twen-
ty-six hundred one-a of this title and any other provision of law to the
contrary,  the  annual  district  meeting  and election of every common,

A. 5538                            21

union free, central and central high  school  district  and  the  annual
meeting  of  every city school district in a city having a population of
less than one hundred twenty-five thousand inhabitants that is scheduled
to  be  held  on  the third Tuesday of May, two thousand three is hereby
adjourned until the first Tuesday in June, two thousand three. The trus-
tees or board of education of each such school  district  shall  provide
notice  of  such adjourned meeting to the qualified voters in the manner
prescribed for notice of the  annual  meeting,  and  such  notice  shall
provide  for an adjourned budget hearing. The adjourned district meeting
or district meeting and election shall be deemed the annual  meeting  or
annual  meeting and election of the district for all purposes under this
title and the date of the adjourned meeting shall be deemed  the  state-
wide  uniform  voting  day  for all purposes under this title.  Notwith-
standing the provisions of subdivision seven of section sixteen  hundred
eight  or subdivision seven of section seventeen hundred sixteen of this
title or any other provision of law, rule or regulation to the contrary,
in two thousand three the property tax report card shall be submitted to
the department no later than twenty  days  prior  to  the  date  of  the
adjourned  meeting  and the department shall make its compilation avail-
able electronically at least seven days prior to such date.]
  S 11. The education law is amended by adding a new section  2023-a  to
read as follows:
  S  2023-A. VOTER APPROVAL OF TAX LEVY LIMITATIONS. 1. THE TAX LEVY FOR
ANY SCHOOL DISTRICT SUBJECT TO THE TAX LEVY LIMITATIONS  ESTABLISHED  BY
SECTION  THIRTEEN  HUNDRED  SEVEN  OF THE REAL PROPERTY TAX LAW SHALL BE
APPROVED BY THE QUALIFIED VOTERS OF THE SCHOOL DISTRICT AS  PROVIDED  IN
THIS  SECTION.  AS USED IN THIS SECTION, THE TERM "TAX LEVY PROPOSITION"
MEANS A PROPOSITION TO AUTHORIZE A TAX LEVY SUFFICIENT  TO  SUPPORT  THE
PROPOSED  SCHOOL  DISTRICT  BUDGET,  EXCLUDING  ANY PROPOSED CAPITAL TAX
LEVY; THE TERM "UNDERRIDE PROPOSITION" MEANS A PROPOSITION TO  IMPOSE  A
MORE RESTRICTIVE TAX LEVY LIMIT UPON A SCHOOL DISTRICT THAN THE TAX LEVY
LIMIT ESTABLISHED PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL
PROPERTY  TAX  LAW;  AND  THE TERM "GENERAL PURPOSE STATE AID" MEANS ALL
FORMS OF STATE AID WHICH ARE PAYABLE TO A  SCHOOL  DISTRICT  AS  GENERAL
SUPPORT  FOR  THE  PUBLIC  SCHOOLS,  WITH THE EXCEPTION OF BUILDING AID,
LIBRARY AID, COMPUTER HARDWARE AND SOFTWARE AID,  UNIVERSAL  PRE-KINDER-
GARTEN  AID AND TEXTBOOK AID.  THE DIRECTOR OF THE BUDGET SHALL ANNUALLY
CERTIFY THE AMOUNT OF GENERAL PURPOSE STATE AID PAYABLE TO  EACH  SCHOOL
DISTRICT.
  2.  A.  THE  QUALIFIED  VOTERS OF A COMMON SCHOOL DISTRICT, UNION FREE
SCHOOL DISTRICT, CENTRAL SCHOOL DISTRICT, CENTRAL HIGH  SCHOOL  DISTRICT
OR  A  CITY  SCHOOL  DISTRICT  IN  A  CITY  WITH  LESS  THAN ONE HUNDRED
TWENTY-FIVE THOUSAND INHABITANTS, UPON FILING OF A VALID PETITION PURSU-
ANT TO PARAGRAPH B OF THIS SUBDIVISION, MAY  VOTE  TO  IMPOSE  TAX  LEVY
LIMITS  FOR THE ENSUING SCHOOL YEAR THAT ARE MORE RESTRICTIVE THAN THOSE
OTHERWISE IMPOSED BY SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY
TAX LAW.  NO SUCH VOTE SHALL APPLY TO MORE THAN ONE SCHOOL YEAR.
  B. UPON THE FILING WITH THE TRUSTEE, TRUSTEES OR BOARD OF EDUCATION OF
ONE OR MORE PETITIONS PURSUANT TO THIS SUBDIVISION  REQUESTING  THAT  AN
UNDERRIDE  PROPOSITION  BE  SUBMITTED  FOR  A VOTE AT A SPECIAL DISTRICT
MEETING, SUCH OFFICERS SHALL CALL A SPECIAL DISTRICT MEETING TO BE  HELD
ON  THE  FIRST  TUESDAY IN MAY, OR THE LAST TUESDAY IN APRIL WHERE THERE
WOULD BE A CONFLICT WITH RELIGIOUS OBSERVANCES, IN ACCORDANCE  WITH  THE
APPLICABLE PROVISIONS OF SUBDIVISION THREE OF SECTION TWO THOUSAND SEVEN
OF  THIS  PART, FOR THE PURPOSE OF SUBMITTING TO THE QUALIFIED VOTERS AN
UNDERRIDE PROPOSITION. SUCH OFFICERS SHALL SUBMIT  FOR  A  VOTE  OF  THE

A. 5538                            22

QUALIFIED  VOTERS THE PROPOSITION THAT WAS SIGNED BY THE GREATEST NUMBER
OF QUALIFIED VOTERS, OR, IF THERE IS A TIE, THE  PROPOSITION  SIGNED  BY
THE GREATEST NUMBER OF QUALIFIED VOTERS THAT WAS FILED FIRST. A PETITION
FOR  AN  UNDERRIDE  PROPOSITION  SHALL  BE  SIGNED  BY: (I) AT LEAST TEN
PERCENT OF THE REGISTERED VOTERS OF THE SCHOOL  DISTRICT  BASED  ON  THE
REGISTER  PREPARED AT THE LAST ANNUAL MEETING AND ELECTION OF THE SCHOOL
DISTRICT; OR (II) IF THE  SCHOOL  DISTRICT  DOES  NOT  PROVIDE  FOR  THE
PERSONAL  REGISTRATION  OF VOTERS, BY TWO HUNDRED FIFTY QUALIFIED VOTERS
OR TWENTY PERCENT OF THE NUMBER OF VOTERS  WHO  VOTED  IN  THE  PREVIOUS
ANNUAL  ELECTION  OF  THE MEMBERS OF THE BOARD OF EDUCATION OR TRUSTEES,
WHICHEVER IS LESS.  SUCH PETITION SHALL BE FILED IN THE  OFFICE  OF  THE
CLERK  OF THE DISTRICT BETWEEN THE HOURS OF NINE A.M. AND FIVE P.M., NOT
LATER THAN THE TWENTIETH DAY PRECEDING THE SPECIAL DISTRICT  MEETING  AT
WHICH AN UNDERRIDE VOTE MAY OCCUR.
  C.  WHERE  A  PROPOSITION  TO UNDERRIDE A TAX LEVY LIMITATION IS TO BE
SUBMITTED FOR A VOTE AT A  SPECIAL  DISTRICT  MEETING  CALLED  FOR  THIS
PURPOSE,  THE  CLERK  OF  THE DISTRICT SHALL GIVE NOTICE OF THE TIME AND
PLACE OF THE SPECIAL DISTRICT MEETING BY PUBLISHING A  NOTICE  AT  LEAST
FOURTEEN DAYS PRIOR TO THE SPECIAL DISTRICT MEETING IN TWO NEWSPAPERS IF
THERE  SHALL  BE  TWO,  OR  IN  ONE NEWSPAPER IF THERE SHALL BE BUT ONE,
HAVING GENERAL CIRCULATION WITHIN SUCH DISTRICT, PROVIDED, HOWEVER, THAT
IF THERE IS NO NEWSPAPER HAVING GENERAL CIRCULATION WITHIN THE DISTRICT,
THE SAID NOTICE SHALL BE POSTED IN AT LEAST TWENTY OF  THE  MOST  PUBLIC
PLACES IN SAID DISTRICT FOURTEEN DAYS BEFORE THE TIME OF SUCH MEETING.
  D.  AN  UNDERRIDE  PROPOSITION  SHALL  BE  A  SEPARATE  PROPOSITION IN
SUBSTANTIALLY THE FOLLOWING FORM:
  "SHALL THE            SCHOOL DISTRICT BE REQUIRED TO IMPOSE A TAX LEVY
FOR THE      SCHOOL YEAR, EXCLUDING ANY CAPITAL TAX  LEVY,  THAT  IS  NO
GREATER  THAN       ,  EVEN THOUGH THE STATUTORY TAX LEVY LIMIT FOR THAT
SCHOOL YEAR IS       ?"
  E. AN UNDERRIDE PROPOSITION SHALL BE APPROVED IF OVER FIFTY PERCENT OF
THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE. IF SUCH UNDERRIDE  PROPO-
SITION  IS  APPROVED BY THE QUALIFIED VOTERS, THE TAX LEVY LIMIT IMPOSED
THEREBY SHALL BE DEEMED TO BE THE TAX LEVY LIMIT FOR THE SCHOOL DISTRICT
FOR THE COMING SCHOOL YEAR FOR  PURPOSES  OF  SECTION  THIRTEEN  HUNDRED
SEVEN  OF THE REAL PROPERTY TAX LAW, AND THE TRUSTEES OR BOARD OF EDUCA-
TION SHALL ADOPT A BUDGET THAT COMPLIES WITH SUCH TAX LEVY  LIMIT.  UPON
APPROVAL  OF AN UNDERRIDE PROPOSITION, NO OTHER TAX LEVY PROPOSITION MAY
BE SUBMITTED TO THE VOTERS FOR THAT SAME SCHOOL YEAR.
  3. A. UNLESS AN UNDERRIDE PROPOSITION HAS BEEN  APPROVED  PURSUANT  TO
SUBDIVISION  TWO  OF  THIS  SECTION,  THE  TRUSTEE, TRUSTEES OR BOARD OF
EDUCATION OF A SCHOOL DISTRICT SHALL PRESENT AT THE ANNUAL  MEETING  AND
ELECTION A TAX LEVY PROPOSITION IN SUBSTANTIALLY THE FOLLOWING FORM:
  "SHALL  THE            SCHOOL  DISTRICT  BE AUTHORIZED TO IMPOSE A TAX
LEVY  FOR  THE        SCHOOL  YEAR,  EXCLUDING  ANY  CAPITAL  TAX  LEVY,
OF       ,  WHEN  THE  STATUTORY  TAX  LEVY  LIMIT  FOR THAT SCHOOL YEAR
IS       ?"
  B. EXCEPT AS OTHERWISE PROVIDED IN SECTION THIRTEEN HUNDRED  SEVEN  OF
THE  REAL PROPERTY TAX LAW, IF THE PROPOSED TAX LEVY DOES NOT EXCEED THE
TAX LEVY LIMIT DETERMINED PURSUANT TO SECTION THIRTEEN HUNDRED SEVEN  OF
THE  REAL  PROPERTY  TAX  LAW, THEN THE PROPOSITION SHALL BE APPROVED IF
OVER FIFTY PERCENT OF THE VOTES CAST THEREON ARE IN THE AFFIRMATIVE.  IF
THE  PROPOSED TAX LEVY WOULD EXCEED THE TAX LEVY LIMIT DETERMINED PURSU-
ANT TO SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW, THEN
THE PROPOSITION SHALL BE APPROVED IF OVER FIFTY-FIVE  PERCENT  OF  VOTES
CAST THEREON ARE IN THE AFFIRMATIVE.

A. 5538                            23

  IF  THE AMOUNT OF GENERAL PURPOSE STATE AID WHICH WILL BE PAYABLE TO A
SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR HAS NOT BEEN CERTIFIED BY THE
DIRECTOR OF THE BUDGET, THEN FIFTY PERCENT OF  THE  VOTES  CAST  ON  THE
PROPOSITION  BY QUALIFIED VOTERS MUST BE IN THE AFFIRMATIVE IN ORDER FOR
THE PROPOSITION TO BE APPROVED.
  C.  IF  THE  TAX LEVY PROPOSITION IS APPROVED BY THE QUALIFIED VOTERS,
THE TAX LEVY LIMIT IMPOSED THEREBY SHALL BE DEEMED TO BE  THE  TAX  LEVY
LIMIT  FOR THE SCHOOL DISTRICT FOR THE COMING SCHOOL YEAR, AND THE TRUS-
TEES OR BOARD OF EDUCATION SHALL ADOPT A BUDGET THAT COMPLIES WITH  SUCH
TAX LEVY LIMIT. IF, HOWEVER, THE TAX LEVY PROPOSITION IS NOT APPROVED BY
THE  QUALIFIED  VOTERS,  THEN  THE  TRUSTEES OR BOARD OF EDUCATION SHALL
ADOPT A BUDGET THAT REQUIRES A TAX LEVY EXCLUDING ANY CAPITAL TAX  LEVY,
THAT IS NO GREATER THAN THE TAX LEVY BASE DETERMINED PURSUANT TO SECTION
THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY TAX LAW.
  S 12. This act shall take effect immediately.