S T A T E O F N E W Y O R K
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5170--A
2015-2016 Regular Sessions
I N A S S E M B L Y
February 12, 2015
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Introduced by M. of A. LAVINE -- read once and referred to the Committee
on Education -- committee discharged, bill amended, ordered reprinted
as amended and recommitted to said committee
AN ACT to amend the education law, in relation to special utility loss
transition aid
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
special circumstances can occur in various school districts where a real
property of a utility, as that term is defined in article 18 of the real
property tax law, is decommissioned, abandoned, downgraded, damaged or
otherwise affected in a significant manner thereby decreasing the value
and assessed valuation of such property and such decreased value or
assessment constitutes the loss of more than twenty per centum of the
total assessed value of such utility power plant. The legislature
further finds that a sudden substantial loss of real property tax reven-
ue of a utility power plant, as defined in section 1802 of the real
property tax law, can result in diminished educational opportunities for
public school students, can be inconsistent with the objectives of the 2
percent property tax cap, can result in substantial increases in real
property taxes for residential and commercial taxpayers and be disrup-
tive and harmful to the proper administration of public schools. There-
fore, it is in the public interest to minimize the harmful effects
outlined above by creating a transition period where the loss of a util-
ity power plant tax revenue is realized over several years allowing for
the gradual assumption of an additional tax burden on class one, two and
four properties. Notwithstanding any provision of this new section 3614,
section 1803-a of the real property tax law shall remain in full force
and effect.
S 2. The education law is amended by adding a new section 3614 to read
as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07579-02-5
A. 5170--A 2
S 3614. SPECIAL UTILITY LOSS TRANSITION AID. 1. NOTWITHSTANDING ANY
OTHER LAW TO THE CONTRARY, THE COMMISSIONER IS HEREBY AUTHORIZED TO
ESTABLISH A SEPARATE FUND TO PAY SPECIAL UTILITY LOSS TRANSITION AID TO
SCHOOL DISTRICTS WHEN THE ASSESSED VALUE OF A UTILITY POWER PLANT
LOCATED WITHIN THE GEOGRAPHICAL BOUNDARIES OF SUCH DISTRICT IS REDUCED
BY TWENTY PER CENTUM OR MORE DUE TO THE DECOMMISSIONING, ABANDONMENT,
DAMAGE OR DOWNGRADE OF SUCH UTILITY POWER PLANT PROPERTY AS DEFINED IN
SECTION EIGHTEEN HUNDRED TWO OF THE REAL PROPERTY TAX LAW, OR IF SUCH
UTILITY POWER PLANT IS OTHERWISE AFFECTED IN A SIGNIFICANT MANNER. SUCH
SPECIAL UTILITY LOSS TRANSITION AID SHALL BE PAID OVER A SIX YEAR PERIOD
WITH SUCH AID BEING PAID AS OUTLINED IN THE FOLLOWING SCHEDULE:
YEAR: AN AMOUNT EQUAL TO:
1 85 PER CENTUM OF THE LOSS OF REAL PROPERTY TAX
REVENUE CAUSED BY THE DECREASE IN THE UTILITY
POWER PLANT ASSESSMENT
2 70 PER CENTUM OF THE LOSS OF REAL PROPERTY TAX
REVENUE CAUSED BY THE DECREASE IN THE UTILITY
POWER PLANT ASSESSMENT
3 55 PER CENTUM OF THE LOSS OF REAL PROPERTY TAX
REVENUE CAUSED BY THE DECREASE IN THE UTILITY
POWER PLANT ASSESSMENT
4 40 PER CENTUM OF THE LOSS OF REAL PROPERTY TAX
REVENUE CAUSED BY THE DECREASE IN THE UTILITY
POWER PLANT ASSESSMENT
5 25 PER CENTUM OF THE LOSS OF REAL PROPERTY TAX
REVENUE CAUSED BY THE DECREASE IN THE UTILITY
POWER PLANT ASSESSMENT
6 10 PER CENTUM OF THE LOSS OF REAL PROPERTY TAX
REVENUE CAUSED BY THE DECREASE IN THE UTILITY
POWER PLANT ASSESSMENT
THE COMMISSIONER IS FURTHER AUTHORIZED TO ADJUST AND DECREASE SUCH
PAYMENTS IF SUCH SCHOOL DISTRICT EXPERIENCES A SIGNIFICANT INCREASE OF
TOTAL ASSESSMENT DURING SUCH PERIOD CAUSED BY NEW DEVELOPMENT OF PROPER-
TIES WITHIN THE DISTRICT OR THE CONVERSION OF SUCH UTILITY POWER PLANT
PROPERTY FOR OTHER PURPOSES.
2. SPECIAL UTILITY LOSS TRANSITION AID SHALL BE PAID TO SUCH DISTRICT
OR DISTRICTS IN ADDITION TO THE AID PAYMENTS SUCH DISTRICT OR DISTRICTS
SHALL BE ALLOCATED UNDER THE ANNUAL SCHOOL AID FORMULA ADOPTED BY THE
LEGISLATURE DURING THE ANNUAL BUDGET PROCESS.
S 3. Paragraph i of subdivision 2 of section 2023-a of the education
law, as added by section 2 of part A of chapter 97 of the laws of 2011,
is amended to read as follows:
i. "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 following:
(i) a tax levy necessary for expenditures resulting from court orders
or judgments against the school district arising out of tort actions for
any amount that exceeds five percent of the total tax levied in the
prior school year;
(ii) in years in which the system average actuarial contribution rate
of the New York state and local employees' retirement system, as defined
by paragraph ten of subdivision a of section nineteen-a of the retire-
ment and social security law, increases by more than two percentage
points from the previous year, a tax levy necessary for expenditures for
the coming fiscal year for school district employer contributions to the
New York state and local employees' retirement system caused by growth
A. 5170--A 3
in the system average actuarial contribution rate minus two percentage
points;
(iii) in years in which the normal contribution rate of the New York
state teachers' retirement system, as defined by paragraph a of subdivi-
sion two of section five hundred seventeen of this chapter, increases by
more than two percentage points from the previous year, a tax levy
necessary for expenditures for the coming fiscal year for school
district employer contributions to the New York state teachers' retire-
ment system caused by growth in the normal contribution rate minus two
percentage points; [and]
(iv) a capital tax levy[.]; AND
(V) A TAX LEVY NECESSARY TO REPLACE THE TAX REVENUE LOST FROM A DEVAL-
UED UTILITY POWER PLANT PROPERTY UNDER WHICH A SCHOOL DISTRICT QUALIFIES
FOR SPECIAL UTILITY LOSS TRANSITION AID.
S 4. Section 1709 of the education law is amended by adding a new
subdivision 43 to read as follows:
S 43. SPECIAL UTILITY LOSS TRANSITION AID RECEIVED BY A SCHOOL
DISTRICT SHALL BE PAID INTO A RESERVE FUND TO BE ESTABLISHED BY THE
BOARD OF EDUCATION OF THE SCHOOL DISTRICT AND USED TO OFFSET INCREASES
IN REAL PROPERTY TAXES DUE TO THE LOSS OF ASSESSED VALUE IN UTILITY
POWER PLANT PROPERTY IN SUCH SCHOOL DISTRICT FOR A PERIOD NOT TO EXCEED
TEN SCHOOL YEARS, OR SUCH LESSER PERIOD AS IT MAY DIRECT. A SCHOOL
DISTRICT MAY ALSO PAY MONEYS DERIVED FROM ANY OTHER SOURCE INTO SUCH
FUND TO OFFSET INCREASES IN REAL PROPERTY TAXES DUE TO THE LOSS OF
ASSESSED VALUE IN UTILITY POWER PLANT PROPERTY. SUCH PROCEEDS MAY BE
INVESTED AND ANY INTEREST OBTAINED MAY ALSO BE USED FOR SUCH PURPOSE.
SUCH RESERVE FUND SHALL BE INVESTED AND REINVESTED PURSUANT TO THE
PROVISIONS OF SECTION SEVENTEEN HUNDRED TWENTY-THREE-A OF THIS ARTICLE.
ANY SPECIAL UTILITY LOSS TRANSITION AID OR SUPPLEMENTAL VALUATION IMPACT
AID PREVIOUSLY RECEIVED BY A SCHOOL DISTRICT AND DEPOSITED IN ANY OTHER
RESERVE FUND SHALL BE TRANSFERRED TO THE RESERVE FUND CREATED PURSUANT
TO, AND EXPENDED IN ACCORDANCE WITH, THIS SUBDIVISION. AMOUNTS EXPENDED
FROM SUCH RESERVE FUND THAT ARE USED TO OFFSET SUCH REAL PROPERTY TAX
INCREASES IN ANY YEAR SHALL BE EXCLUDED FROM THE CALCULATIONS SET FORTH
IN SECTION TWO THOUSAND TWENTY-THREE-A OF THIS TITLE.
S 5. This act shall take effect immediately; provided that the amend-
ments to paragraph i of subdivision 2 of section 2023-a of the education
law made by section three of this act shall be subject to the repeal of
such section and shall be deemed to be repealed therewith.