S T A T E O F N E W Y O R K
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5501
2015-2016 Regular Sessions
I N S E N A T E
May 14, 2015
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Introduced by Sen. FARLEY -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to establish a semiconductor manufacturing tax stabilization
reserve fund in the Ballston Spa Central School District to lessen or
prevent increases in the school district's real property tax levy
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings. The legislature hereby finds that the
private development and ownership of a semiconductor manufacturing
project or projects located within the Ballston Spa Central School
District may result in instability in the real property tax base and the
budgets of the district due to the uncertainty with the assessments of
such semiconductor manufacturing project or projects and the variability
of the payments in lieu of taxes prior to and at termination of such
payments.
S 2. Definitions. As used in this act:
(a) "Board of education" or "board" means the board of education of
the Ballston Spa Central School District.
(b) "Semiconductor manufacturing tax stabilization reserve fund" or
"fund" means the semiconductor manufacturing tax stabilization reserve
fund established pursuant to this act.
(c) "Payments in lieu of taxes" or "payments" means payments in lieu
of taxes receivable by the school district pursuant to contracts entered
into in accordance with section 412-a of the real property tax law or
section 858 of the general municipal law on any semiconductor manufac-
turing project or projects located wholly or partially within the Ball-
ston Spa Central School District.
(d) "School district" or "district" means the Ballston Spa Central
School District.
(e) "Semiconductor manufacturing project or projects" shall be defined
as in section 412-a of the real property tax law and shall include the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11059-02-5
S. 5501 2
land upon which the project is located, buildings for use in the manu-
facturing of semiconductors, associated buildings, and the acquisition
and installation therein of certain machinery and equipment.
S 3. Semiconductor manufacturing tax stabilization reserve fund. The
board of education is hereby authorized to establish a tax stabilization
reserve fund to lessen or prevent increases in the school district's
real property tax levy resulting from decreases in revenue due to chang-
es in the amount of or termination of payments in lieu of taxes receiv-
able by the school district provided, however, that no such fund shall
be established unless approved by a majority vote of the qualified
voters of the district present and voting on a separate ballot proposi-
tion therefor at either a special district meeting which the board of
education may call for such purposes, or at the annual district meeting
and election, to be noticed and conducted in either case in accordance
with the provisions of article 41 of the education law. Moneys shall be
paid into and withdrawn from the fund, and the fund shall be adminis-
tered, as follows:
(a) For any school district fiscal year commencing after the effective
date of this act and after the establishment of the semiconductor manu-
facturing tax stabilization reserve fund, the board of education may
determine that there shall be paid into the fund all or any portion of
the amount by which the payments in lieu of taxes receivable by the
school district for such fiscal year is greater than the amount of such
payments received by the school district for the preceding fiscal year,
provided that no payment into the reserve fund shall cause the balance
of the fund to exceed the amount approved in a ballot proposition
described above.
(b) Moneys may be withdrawn from the semiconductor manufacturing tax
stabilization reserve fund subject to the following limitations:
(1) For any fiscal year for which payments in lieu of taxes receivable
by the school district are less than the amount of such payments
received for the immediately preceding fiscal year, or the school
district does not anticipate receiving any payment, the board of educa-
tion may authorize a withdrawal from the fund in an amount not to exceed
the amount of the payments received for the immediately preceding year
less the amount of the payments receivable for the fiscal year for which
the budget and tax levy is being determined.
(2) Notwithstanding paragraph one of this subdivision, and in addition
to any withdrawal from the fund authorized pursuant to this subdivision,
moneys may be withdrawn from the fund for any fiscal year to be expended
for any other lawful purpose, provided, however, that no such withdrawal
and expenditure shall be made unless approved by a majority vote of the
qualified voters of the district present and voting on a separate ballot
proposition therefor at either a special district meeting which the
board of education may call for such purpose, or at the annual district
meeting and election, to be noticed and conducted in either case in
accordance with the provisions of article 41 of the education law.
(c) The moneys in the semiconductor manufacturing tax stabilization
reserve fund shall be deposited, invested and accounted for in the
manner provided for in subdivisions 2 and 6 of section 3651, and section
3652 of the education law.
(d) Deposits to and withdrawals from the fund shall be disclosed in a
manner consistent with the required disclosures of similar reserve funds
held by the district, including disclosures required by the property tax
report card prepared by the district pursuant to the provisions of
subdivision 7 of section 1716 of the education law; and deposits and
S. 5501 3
withdrawals made in each fiscal year shall be subject to the district's
annual budget approval process.
S 4. Subject to section five of this act, when computing the school
district's tax levy limit for a school year pursuant to subdivision 3 of
section 2023-a of the education law:
(a) The payments in lieu of taxes receivable for the prior school year
shall be decreased by any amount paid into the semiconductor manufactur-
ing tax stabilization reserve fund for such prior school year and
increased by any amount withdrawn from the fund for such prior school
year.
(b) The payments in lieu of taxes receivable in the coming fiscal year
shall be decreased by the amount to be paid into the semiconductor manu-
facturing tax stabilization reserve fund for such coming fiscal year and
increased by any amount to be withdrawn from the semiconductor manufac-
turing tax stabilization reserve fund for such coming fiscal year.
S 5. The provisions of section four of this act shall apply only in
the case of an agreement for payments in lieu of taxes that results in a
pilot payment to the school district that is equal to or greater than
twenty percent of the district's tax levy in two or more taxable years
of the agreement; provided however, once such threshold is met, it shall
apply to every taxable year under such agreement.
S 6. This act shall take effect immediately, and shall be deemed to
have been in full force and effect on and after May 19, 2015.
