Senate Bill S7627

2017-2018 Legislative Session

Relates to special funds for counties, cities, villages, towns, and schools

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Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 01, 2018	referred to local government

2017-S7627 (ACTIVE) - Details

See Assembly Version of this Bill:: A9681
Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Add §6-t, Gen Muni L; add Art 78 §§3901 - 3902, Ed L; add §488-b, RPT L

2017-S7627 (ACTIVE) - Summary

Relates to special funds for counties, cities, villages, towns, and schools; allows the creation of special funds; authorizes tax credits for contributions to special funds.

2017-S7627 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7627

SPONSOR: MURPHY
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to special funds
for counties, cities, villages, and towns; to amend the education law,
in relation to the creation of special funds; and to amend the real
property tax law, in relation to tax credits for contributions to
special funds

 
PURPOSE:

To authorize municipalities and school districts to create special funds
and allow a taxpayer to receive a credit on their property taxes for
contributions made to such special funds.

 
SUMMARY:

Section 1 amends the general municipal law to add a new section 6-t to
authorize counties, cities, villages, and towns to create special funds

to accept monetary contributions for exclusively public purposes and
sets forth the requirements related to such funds. This section also
directs the governing board to establish a procedure for the public to
make contributions to special funds and obtain a written acknowledgment
of the contribution.

Section two adds a new article seventy-eight to the education law to
authorize school districts to create special funds to accept monetary
contributions for the purpose of promoting and enhancing high-quality
public education and sets forth the requirements related to such funds.
This section also directs school authorities to establish a procedure
for the public to make contributions to special funds and obtain a writ-
ten acknowledgment of the contribution.

Section three amends the real property tax law to add a new section four
hundred eighty-eight-b to establish a tax credit for contributions to
special funds. Specifically, this section allows for a credit against
tax of ninety percent of the amount contributed by a taxpayer for the
taxable year to a special fund.

Section four provides the effective date.

 
JUSTIFICATION:

The recently enacted federal tax law includes a provision to cap the
amount of the state and local tax deduction at $10,000. This dispropor-
tionately affects residents in areas of the state with high property
taxes. These residents will now face an increase in federal and possibly
state income taxes on top of those steep property tax bills.

This bill would allow a taxpayer to contribute to a special fund estab-
lished by a school district or municipality, and receive a credit on
their property taxes in the amount of eighty-five percent of their
contribution.

Many states already have programs in place that provide tax credits for
charitable donations. For example, several states provide tax credits
for donations made to private schools or scholarship funds.  The New
York Conservation Easement Tax Credit provides a credit of twenty-five
percent of the amount of property taxes paid on the easement property,
when a conservation easement is donated (Tax Law section 606 (kk)). The
Internal Revenue Service, as well as court rulings, have routinely held
that the federal charitable deduction does not need to be reduced by the
amount of any state tax credit given for the donation.

Since charitable gifts remain deductible on federal taxes, taxpayers
would be able to receive a federal deduction for their donation to a
special fund which would help offset the loss of the state and local tax
deduction.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect the ninetieth day after it shall have become
law.

2017-S7627 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7627
 
                             I N  S E N A T E
 
                             February 1, 2018
                                ___________
 
 Introduced  by  Sen.  MURPHY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law, in relation to special  funds
   for counties, cities, villages, and towns; to amend the education law,
   in  relation  to  the creation of special funds; and to amend the real
   property tax law, in relation to  tax  credits  for  contributions  to
   special funds
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general municipal  law  is  amended  by  adding  a  new
 section 6-t to read as follows:
   § 6-T. SPECIAL FUNDS FOR COUNTIES, CITIES, VILLAGES, AND TOWNS.  1. AS
 USED  IN  THIS SECTION THE TERM "GOVERNING BOARD", INSOFAR AS IT IS USED
 IN REFERENCE TO A VILLAGE, SHALL MEAN THE  BOARD  OF  TRUSTEES  THEREOF;
 INSOFAR  AS IT IS USED IN REFERENCE TO A TOWN, SHALL MEAN THE TOWN BOARD
 THEREOF; INSOFAR AS IT IS USED IN REFERENCE TO A COUNTY, SHALL MEAN  THE
 LEGISLATIVE  BODY THEREOF; INSOFAR AS IT IS USED IN REFERENCE TO A CITY,
 SHALL MEAN THE "LOCAL LEGISLATIVE BODY" THEREOF, AS THAT TERM IS DEFINED
 IN SUBDIVISION SEVEN OF SECTION TWO OF THE MUNICIPAL HOME RULE  LAW,  AS
 AMENDED FROM TIME TO TIME.
   2.  THE  GOVERNING  BOARD  OF  ANY  COUNTY, CITY, VILLAGE, OR TOWN MAY
 ESTABLISH A SPECIAL FUND TO ACCEPT MONETARY CONTRIBUTIONS FOR EXCLUSIVE-
 LY PUBLIC PURPOSES.   THE GOVERNING BOARD  SHALL  SPECIFY  THE  SPECIFIC
 PURPOSES FOR WHICH THE FUND IS ESTABLISHED.
   3.  THE MONEYS IN EACH SUCH FUND SHALL BE DEPOSITED AND SECURED IN THE
 MANNER PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING  BOARD  OR
 THE  CHIEF  FISCAL  OFFICER OF SUCH MUNICIPALITY, IF THE GOVERNING BOARD
 SHALL DELEGATE SUCH DUTY TO HIM, MAY INVEST THE MONEYS IN EACH SUCH FUND
 IN THE MANNER PROVIDED IN SECTION ELEVEN OF THIS ARTICLE.  ANY  INTEREST
 EARNED  OR CAPITAL GAINS REALIZED ON THE MONEYS SO DEPOSITED OR INVESTED
 SHALL ACCRUE TO AND BECOME PART OF EACH SUCH FUND. THE SEPARATE IDENTITY
 OF EACH SUCH FUND SHALL BE MAINTAINED, WHETHER  ITS  ASSETS  CONSIST  OF
 CASH OR INVESTMENTS OR BOTH.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14273-05-8

 S. 7627                             2
 
   4.  THE  GOVERNING BOARD MAY AUTHORIZE THE TRANSFER OF ALL OR ANY PART
 OF ANY SPECIAL FUND TO ANY OTHER SPECIAL FUND  ESTABLISHED  PURSUANT  TO
 THIS SECTION.
   5. (A) THE CHIEF FISCAL OFFICER SHALL KEEP A SEPARATE ACCOUNT FOR EACH
 FUND ESTABLISHED. SUCH ACCOUNT SHALL SHOW:
   (I) THE DATE AND AMOUNT OF EACH SUM PAID INTO THE FUND.
   (II) THE INTEREST EARNED BY SUCH FUND.
   (III)  THE  CAPITAL GAINS OR LOSSES RESULTING FROM THE SALE OF INVEST-
 MENTS OF THE FUND.
   (IV) THE AMOUNT AND DATE OF EACH WITHDRAWAL FROM THE FUND.
   (V) THE ASSETS OF THE FUND, INDICATING THE CASH BALANCE THEREIN AND  A
 SCHEDULE OF THE AMOUNTS INVESTED IN FEDERAL OR STATE OBLIGATIONS.
   (B)  THE CHIEF FISCAL OFFICER, AT THE TERMINATION OF EACH FISCAL YEAR,
 SHALL RENDER A DETAILED REPORT OF THE OPERATION AND CONDITION OF EACH OF
 SUCH FUNDS TO THE GOVERNING BOARD.
   6. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS  SECTION,  IN  ANY
 TOWN  WHICH  IS  LOCATED WHOLLY OR PARTLY WITHIN THE ADIRONDACK PARK AND
 HAS WITHIN ITS BOUNDARIES STATE LANDS SUBJECT TO  TAXATION  ASSESSED  AT
 MORE  THAN  THIRTY PER CENTUM OF THE TOTAL TAXABLE ASSESSED VALUATION OF
 THE TOWN AS DETERMINED  FROM  THE  ASSESSMENT  ROLLS  OF  THE  TOWN,  AS
 COMPLETED  FROM  TIME  TO  TIME, A SPECIAL FUND SHALL NOT BE ESTABLISHED
 UNLESS THE STATE COMPTROLLER, ON BEHALF  OF  THE  STATE,  SHALL  CONSENT
 THERETO.
   7.  THE  GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR THE PUBLIC TO
 MAKE A MONETARY CONTRIBUTION  TO  A  SPECIAL  FUND  CREATED  UNDER  THIS
 SECTION  AND  FOR ANY CONTRIBUTOR TO THE FUND TO OBTAIN FROM THE COUNTY,
 CITY, VILLAGE, OR TOWN A WRITTEN ACKNOWLEDGEMENT OF THE CONTRIBUTION.
   § 2. The education law is amended by adding a new article 78  to  read
 as follows:
                                 ARTICLE 78
                               SPECIAL FUNDS
 SECTION 3901. SPECIAL FUND.
         3902. PROCEDURES.
   §  3901.  SPECIAL FUND. 1. A. A SPECIAL FUND MAY BE ESTABLISHED BY THE
 SCHOOL AUTHORITIES OF ANY SCHOOL DISTRICT TO  ACCEPT  MONETARY  CONTRIB-
 UTIONS  FOR  THE  PURPOSE OF PROMOTING AND ENHANCING HIGH-QUALITY PUBLIC
 EDUCATION.
   B. THE SCHOOL AUTHORITIES SHALL SPECIFY THE PURPOSE FOR WHICH THE FUND
 IS ESTABLISHED, PROVIDED THAT SUCH PURPOSE MUST PROMOTE OR ENHANCE HIGH-
 QUALITY PUBLIC EDUCATION.
   2. THE MONEYS IN EACH SUCH FUND SHALL BE DEPOSITED IN ONE OR  MORE  OF
 THE  BANKS OR TRUST COMPANIES DESIGNATED AS DEPOSITORIES OF THE FUNDS OF
 SUCH SCHOOL DISTRICT AND SHALL BE KNOWN AS THE "________SPECIAL FUND" OF
 SUCH DISTRICT. THE SCHOOL AUTHORITIES MAY DIRECT THE TREASURER  OF  SUCH
 SCHOOL  DISTRICT  TO  INVEST  THE MONEYS IN EACH SUCH FUND IN THE MANNER
 PROVIDED IN SECTION ELEVEN OF THE GENERAL MUNICIPAL  LAW.  ANY  INTEREST
 EARNED  OR  CAPITAL  GAINS  REALIZED  ON  THE  MONEY  SO DEPOSITED OR SO
 INVESTED SHALL ACCRUE TO AND BECOME A PART OF EACH SUCH FUND.  THE SEPA-
 RATE IDENTITY OF EACH SUCH FUND SHALL BE MAINTAINED WHETHER  ITS  ASSETS
 CONSIST OF CASH OR INVESTMENTS OR BOTH.
   3.  AN  EXPENDITURE  SHALL  BE  MADE  FROM A SPECIAL FUND ONLY FOR THE
 SPECIFIC PURPOSE SPECIFIED BY THE SCHOOL AUTHORITIES.
   4. THE VOTERS MAY AUTHORIZE THE TRANSFER OF ALL OR  ANY  PART  OF  ANY
 SPECIAL  FUND  TO  ANY  OTHER  SPECIAL FUND ESTABLISHED PURSUANT TO THIS
 SECTION.

 S. 7627                             3
 
   5. THE SCHOOL AUTHORITIES SHALL CAUSE A SEPARATE ACCOUNT TO BE KEPT OF
 EACH FUND ESTABLISHED. SUCH ACCOUNT SHALL SHOW:
   A. THE DATE AND AMOUNT OF EACH SUM PAID INTO THE FUND.
   B. THE INTEREST EARNED BY SUCH FUND.
   C.  THE CAPITAL GAINS OR LOSSES RESULTING FROM THE SALE OF INVESTMENTS
 OF THE FUND.
   D. THE AMOUNT AND DATE OF EACH WITHDRAWAL FROM THE FUND.
   E. THE ASSETS OF THE FUND INDICATING THE CASH BALANCE  THEREIN  AND  A
 SCHEDULE OF THE AMOUNTS INVESTED IN FEDERAL OR STATE OBLIGATIONS.
   6.  THE  SCHOOL AUTHORITIES SHALL RENDER ANNUALLY A DETAILED REPORT OF
 THE OPERATION AND CONDITIONS OF EACH OF  SUCH  FUNDS.  A  COPY  OF  SUCH
 REPORT SHALL BE FILED WITH THE COMMISSIONER.
   7.  A. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION, IF IN
 ANY CITY ANY TAXES RAISED ON REAL ESTATE FOR THE PURPOSES OF THE  SCHOOL
 DISTRICT  MUST  BE  INCLUDED  IN COMPUTING THE AMOUNT WHICH THE CITY MAY
 RAISE BY TAX ON REAL ESTATE FOR CITY PURPOSES PURSUANT TO THE PROVISIONS
 OF SECTION TEN OF ARTICLE EIGHT OF THE CONSTITUTION,  THE  ESTABLISHMENT
 OF A SPECIAL FUND BY THE SCHOOL AUTHORITIES OF THE SCHOOL DISTRICT SHALL
 BE SUBJECT TO THE CONSENT OF THE LEGISLATIVE BODY OF THE CITY.
   B.  NOTWITHSTANDING  THE  FOREGOING PROVISIONS OF THIS SECTION, IN ANY
 SCHOOL DISTRICT WHICH IS WHOLLY OR PARTLY IN THE ADIRONDACK PARK AND HAS
 WITHIN ITS BOUNDARIES STATE LANDS SUBJECT TO TAXATION ASSESSED  AT  MORE
 THAN  THIRTY  PER  CENTUM OF THE AGGREGATE TAXABLE ASSESSED VALUATION OF
 THE REAL PROPERTY WITHIN THE BOUNDS OF SUCH SCHOOL DISTRICT, THE  SCHOOL
 DISTRICT  SHALL  NOT ESTABLISH A SPECIAL FUND UNLESS, ON THE RECOMMENDA-
 TION OF THE COMMISSIONER, THE STATE COMPTROLLER ON BEHALF OF THE  STATE,
 SHALL CONSENT THERETO. UPON THE EXPIRATION OF FIFTEEN DAYS FROM THE DATE
 OF  THE FILING IN HIS OR HER OFFICE OF THE APPLICATION FOR SUCH CONSENT,
 TOGETHER WITH THE RECOMMENDATION OF THE COMMISSIONER, AND UPON  REACHING
 A  DETERMINATION,  THE STATE COMPTROLLER SHALL MAKE AN ORDER, IN TRIPLI-
 CATE, GRANTING OR DENYING SUCH CONSENT. ONE COPY OF SUCH ORDER SHALL  BE
 FILED  IN  THE  OFFICE  OF  THE STATE DEPARTMENT OF AUDIT AND CONTROL AT
 ALBANY, NEW YORK, ANOTHER IN THE STATE DEPARTMENT OF EDUCATION AT  ALBA-
 NY,  NEW  YORK,  AND THE THIRD IN THE OFFICE OF THE CLERK OF SUCH SCHOOL
 DISTRICT.
   § 3902. PROCEDURES. SCHOOL AUTHORITIES SHALL ESTABLISH A PROCEDURE FOR
 THE PUBLIC TO MAKE A MONETARY CONTRIBUTION TO  A  SPECIAL  FUND  CREATED
 UNDER  THIS  ARTICLE  AND FOR ANY CONTRIBUTOR TO THE FUND TO OBTAIN FROM
 THE SCHOOL DISTRICT A WRITTEN ACKNOWLEDGEMENT OF THE CONTRIBUTION.
   § 3. The real property tax law is amended  by  adding  a  new  section
 488-b to read as follows:
   §  488-B.  TAX  CREDIT FOR CONTRIBUTIONS TO SPECIAL FUNDS. 1.  (A) FOR
 TAXABLE YEARS BEGINNING JANUARY  FIRST,  TWO  THOUSAND  EIGHTEEN,  THERE
 SHALL  BE  ALLOWED  AS A CREDIT AGAINST TAXES IMPOSED BY A COUNTY, CITY,
 VILLAGE, OR TOWN, AN AMOUNT  EQUAL  TO  NINETY  PERCENT  OF  THE  AMOUNT
 CONTRIBUTED BY A TAXPAYER FOR THE TAXABLE YEAR TO A SPECIAL FUND CREATED
 BY  SUCH  COUNTY, CITY, VILLAGE OR TOWN PURSUANT TO SECTION SIX-T OF THE
 GENERAL MUNICIPAL LAW.
   (B) FOR TAXABLE YEARS BEGINNING JANUARY FIRST, TWO THOUSAND  EIGHTEEN,
 THERE  SHALL  BE  ALLOWED  AS A CREDIT AGAINST TAXES IMPOSED BY A SCHOOL
 DISTRICT, AN AMOUNT EQUAL TO NINETY PERCENT OF THE AMOUNT CONTRIBUTED BY
 A TAXPAYER FOR THE TAXABLE YEAR TO A SPECIAL FUND CREATED BY SUCH SCHOOL
 DISTRICT PURSUANT TO SECTION THREE THOUSAND  NINE  HUNDRED  ONE  OF  THE
 EDUCATION LAW.

 S. 7627                             4
 
   2. IF THE ALLOWABLE TAX CREDIT EXCEEDS THE TAXES OTHERWISE OWED BY THE
 TAXPAYER,  THE  TAXPAYER  MAY  CLAIM  THE EXCESS CREDIT IN THE FOLLOWING
 YEAR, AND SUCCEEDING YEAR.
   §  4.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

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Senate Bill S7627

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

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2017-S7627 (ACTIVE) - Details

2017-S7627 (ACTIVE) - Summary

2017-S7627 (ACTIVE) - Sponsor Memo

2017-S7627 (ACTIVE) - Bill Text download pdf

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Sponsored By

Terrence Murphy

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

2017-S7627 (ACTIVE) - Details

2017-S7627 (ACTIVE) - Summary

2017-S7627 (ACTIVE) - Sponsor Memo

2017-S7627 (ACTIVE) - Bill Text download pdf

Comments