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

                                  5791

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              March 6, 2013
                               ___________

Introduced  by  M.  of A. ENGLEBRIGHT, RAIA -- 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
THIRTEEN--TWO  THOUSAND  FOURTEEN  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.
                                                           LBD09415-01-3
              

A. 5791                             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 THIRTEEN--TWO THOUSAND FOURTEEN 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 THIRTEEN--TWO THOUSAND FOURTEEN
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  THIRTEEN--TWO  THOUSAND  FOURTEEN
AND  SUBSEQUENT  SCHOOL  YEARS.  SUCH  REBATE BASES SHALL BE COMPUTED BY
DETERMINING THE EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT  FOR  PURPOSES

A. 5791                             3

OF  THE BASIC STAR EXEMPTION FOR THE TWO THOUSAND THIRTEEN--TWO THOUSAND
FOURTEEN AND SUBSEQUENT SCHOOL YEARS, MULTIPLYING  THAT  AMOUNT  BY  THE
SCHOOL  DISTRICT TAX RATE APPLICABLE WITHIN THAT SEGMENT FOR PURPOSES OF
THE  TWO  THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN AND SUBSEQUENT SCHOOL
YEARS, AS REPORTED BY THE SCHOOL DISTRICT.  FOR THE TWO  THOUSAND  THIR-
TEEN--TWO  THOUSAND  FOURTEEN  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 THIRTEEN--TWO THOUSAND FOUR-
TEEN 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 THIRTEEN--TWO  THOU-
SAND  FOURTEEN  SCHOOL  YEAR.    SUCH  REBATE BASES SHALL BE COMPUTED BY
MULTIPLYING THAT AMOUNT BY THE SCHOOL DISTRICT TAX RATE APPLICABLE WITH-
IN 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 THIRTEEN--TWO THOUSAND  FOUR-
TEEN SCHOOL YEAR AND EACH YEAR THEREAFTER, TAX REBATES AUTHORIZED PURSU-
ANT 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. 5791                             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-B 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 THIRTEEN--TWO  THOU-
SAND  FOURTEEN  SCHOOL  YEAR THROUGH THE PRIOR SCHOOL YEAR WAS BELOW THE
APPLICABLE 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

A. 5791                             5

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-B 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-B 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. 5791                             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 WITH, 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 THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL  YEAR,
AFFILIATED  INCOME  SHALL  BE DETERMINED BASED UPON THE PARTIES' INCOMES
FOR THE INCOME TAX YEAR ENDING IN TWO THOUSAND TWELVE.   IN EACH  SUBSE-
QUENT  YEAR,  THE  APPLICABLE  INCOME  TAX YEAR SHALL BE ADVANCED BY ONE
YEAR.

A. 5791                             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 THIRTEEN--TWO THOUSAND FOURTEEN 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
THIRTEEN.  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  TWELVE
INCOME  TAX  YEAR  BECAUSE  THEIR  INCOMES WERE BELOW THE THRESHOLD THAT
NECESSITATED 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 TWELVE
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  DETER-
MINES IS NECESSARY TO CALCULATE THE PARCEL'S AFFILIATED INCOME UNDER THE
"MIDDLE CLASS STAR" REBATE PROGRAM.
  (D)  AFTER  TWO THOUSAND THIRTEEN, 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 THIRTEEN, AN OTHERWISE  ELIGI-
BLE  PROPERTY  OWNER  SHALL NOT RECEIVE A REBATE FOR SUCH YEAR. HOWEVER,
SUCH APPLICATION SHALL BE CONSIDERED TIMELY FILED FOR A REBATE IN SUBSE-
QUENT 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 TWELVE 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. 5791                             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 TWELVE INCOME TAX YEAR BECAUSE
THEY DID NOT RESIDE IN NEW YORK STATE IN SUCH TAXABLE YEAR,  THE  APPLI-
CANT  SHALL PROVIDE SUCH INFORMATION REGARDING INCOME AS IS REQUESTED BY
THE DEPARTMENT. THE DEPARTMENT SHALL  ISSUE  A  REBATE  BASED  UPON  THE
INFORMATION 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  FOURTEEN.  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  TWELVE,
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
TWELVE  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. 5791                             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 EIGHTEEN--TWO THOUSAND NINETEEN 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 SEVENTEEN--TWO THOUSAND
EIGHTEEN 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 DETER-
MINED 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
(vv) to read as follows:
  (VV)  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. 5791                            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 THIRTEEN, 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. 5791                            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  THIR-
TEEN TAXPAYERS WHO:
  (A)  ARE  SIXTY-FIVE  YEARS  OR OLDER AS OF DECEMBER THIRTY-FIRST, TWO
THOUSAND THIRTEEN 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 THIR-
TEEN TAXPAYERS WHO:
  (A)  ARE  SIXTY-FIVE  YEARS  OR OLDER AS OF DECEMBER THIRTY-FIRST, TWO
THOUSAND THIRTEEN 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. 5791                            12

subdivision 7 as amended by section 4 of part A of  chapter  97  of  the
laws of 2011, 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-B 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. 5791                            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. 5791                            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 district's tax levy limit determined
pursuant to section two thousand twenty-three-a of this title,  and  the
estimated  school  tax levy, excluding any levy necessary to support the
expenditures pursuant to subparagraphs (i) through (iv) of  paragraph  i
of subdivision two of section two thousand twenty-three-a of this title,
that would result from adoption of the proposed budget; and [(iii)] (IV)
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 [(iv)] (V) the  percentage  increase  in  the  consumer  price
index, as defined in paragraph c of this subdivision; and [(v)] (VI) 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

A. 5791                            15

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
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  7-a.  Paragraph a of subdivision 7 of section 1608 of the education
law, as amended by chapter 238 of the laws of 2007, is amended  to  read
as follows:
  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.

A. 5791                            16

  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 section 5 of part A of chapter 97 of the
laws of 2011, 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-B 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
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

A. 5791                            17

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-
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

A. 5791                            18

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
thousand--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 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 district's  tax  levy  limit  determined
pursuant  to  section two thousand twenty-three-a of this title, and the
estimated school tax levy, excluding any levy necessary to  support  the
expenditures  pursuant  to subparagraphs (i) through (iv) of paragraph i
of subdivision two of section two thousand twenty-three-a of this title,
that would result from adoption of the proposed budget; and [(iii)] (IV)
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  [(iv)]  (V)  the  percentage  increase in the consumer price
index, as defined in paragraph c of this subdivision; and [(v)] (VI) 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

A. 5791                            19

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  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  8-a.  Paragraph a of subdivision 7 of section 1716 of the education
law, as amended by chapter 238 of the laws of 2007, is amended  to  read
as follows:
  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
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

A. 5791                            20

district  budget  for the preceding school year that the actual unappro-
priated unreserved fund balance represents.
  S  9.  Section  2008  of  the education law is amended by adding a new
subdivision 4 to read as follows:
  4. 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-B 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  7  of
part A of chapter 97 of the laws of 2011, is amended to read as follows:
  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 PREPOSI-
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. 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-B OF
THIS PART, SUCH TRUSTEES OR BOARD OF EDUCATION 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 THIRTEEN 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 sections two thousand eight and
two thousand thirty-five of this part; provided however that such propo-
sitions  shall  be  subject to the requirements set forth in subdivision
nine of section two thousand twenty-three-a of this 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. 5791                            21

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,  and
shall also include the district's tax levy limit pursuant to section two
thousand twenty-three-a of this part, and the estimated school tax levy,
excluding  any  levy  necessary  to support the expenditures pursuant to
subparagraphs (i) through (iv) of paragraph  i  of  subdivision  two  of
section two thousand twenty-three-a of this part, that would result from
adoption  of the proposed budget] 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 OR 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-B 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. The budget adoption process shall conform to the  requirements  set
forth in section two thousand twenty-three-a of this part. [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 resub-
mitted budget, the sole trustee, trustees or board  of  education  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

A. 5791                            22

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 sections  two  thousand  twenty-three
and two thousand twenty-three-a 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,
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 10-a. 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:
  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

A. 5791                            23

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-B  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]
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

A. 5791                            24

(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-B 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,
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

A. 5791                            25

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-b  to
read as follows:
  S  2023-B. 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
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

A. 5791                            26

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.
  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

A. 5791                            27

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; provided, however, that:
  (a)  the amendments to paragraph a of subdivision 7 of section 1608 of
the education law, made by section seven of this act, shall  not  affect
the  expiration  of such paragraph and shall expire therewith, when upon
such date the provisions of section  seven-a  of  this  act  shall  take
effect;
  (b)  the amendments to paragraph a of subdivision 7 of section 1716 of
the education law, made by section eight of this act, shall  not  affect
the  expiration  of such paragraph and shall expire therewith, when upon
such date the provisions of section  eight-a  of  this  act  shall  take
effect; and
  (c)  the  amendments  to  section  2022  of the education law, made by
section ten of this act, shall not affect the expiration of such section
and shall expire therewith,  when  upon  such  date  the  provisions  of
section ten-a of this act shall take effect.