Senate Bill S5174

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 5174                                                  A. 5804
 
                        2021-2022 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 25, 2021
                                ___________
 
 IN SENATE -- Introduced by Sen. PALUMBO -- read twice and ordered print-
   ed, and when printed to be committed to the Committee on Education
 
 IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
   to the Committee on Education
 
 AN ACT to amend the education law, in relation to school district  reor-
   ganizations and real property tax rates
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3613 of the education law, as added by section 6 of
 part A of chapter 56 of the laws of 2014, is amended to read as follows:
   § 3613. School district reorganizations and real property  tax  rates.
 1.   When two or more school districts propose to reorganize pursuant to
 sections  fifteen  hundred  eleven  through  fifteen  hundred  thirteen,
 fifteen  hundred  twenty-four,  fifteen  hundred  twenty-six,  seventeen
 hundred five, or eighteen hundred one through eighteen hundred three  of
 this  chapter, and under the law that would otherwise be applicable, the
 reorganization would have an impact upon the school tax rates within the
 areas served by the school districts that existed prior to the  reorgan-
 ization, notwithstanding any other provision of law to the contrary, the
 boards  of education or trustees of all the school districts participat-
 ing in the proposed reorganization may opt to have that impact  deferred
 for  a  one-year  period and/or phased-in over a period as may be deter-
 mined by the boards of education or trustees of all participating school
 districts in the manner prescribed by this section but which  shall  not
 exceed  a  [ten-year]  TWENTY-YEAR  period. To exercise such option, the
 boards of education or trustees of all participating  school  districts,
 after  conducting  a  public  hearing,  may  adopt a resolution at least
 forty-five days prior to the special district meeting at which the reor-
 ganization vote will be held, to defer and/or  phase-in  the  impact  as
 provided  herein.  If  the board of education or trustees of any partic-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05778-01-1

 S. 5174                             2                            A. 5804
 
 ipating school district does not approve such a resolution opting for  a
 common phase-in period, the provisions of this section shall not apply.
   2.  During the one-year deferral period, the tax rate for each portion
 of the school district shall be calculated in the following manner:
   (a) Determine the assessed value tax rate that applied for the  school
 year  immediately  preceding the school year in which the reorganization
 took effect.
   (b) Multiply that assessed value tax rate by  the  state  equalization
 rate applicable to the portion for the school year immediately preceding
 the school year in which the reorganization took effect.
   (c)  Divide  the  product so determined by the state equalization rate
 applicable to the portion for the first school year of  the  reorganized
 school  district.  The  quotient  is the assessed value tax rate for the
 portion for that school year. Provided, that if  the  sum  of  the  real
 property tax levies in all of the portions in the school district, using
 the  assessed  value  tax  rates  computed pursuant to this subdivision,
 would yield a real property tax levy that is above or  below  the  total
 real  property  tax levy specified in the school district budget for the
 current school year, the assessed value tax rates shall all be decreased
 or increased proportionately so as to yield the specified real  property
 tax levy amount.
   3.  During  each year of a phase-in period, whose duration up to [ten]
 TWENTY years shall have been determined by the boards  of  education  or
 trustees  of  the  constituent  school  districts, the tax rate for each
 portion of the reorganized school district shall be  calculated  in  the
 following manner:
   (a)  Determine the assessed value tax rate that applied for the school
 year immediately preceding the school year in which  the  reorganization
 took effect.
   (b)  Multiply  that  assessed value tax rate by the state equalization
 rate applicable to the portion for the school year immediately preceding
 the school year in which the reorganization took effect. The  result  is
 the base full value tax rate of the portion.
   (c)  Determine  the assessed value tax rate that would have applied in
 the portion but for the provisions of this section.
   (d) Multiply that assessed value tax rate by  the  state  equalization
 rate  that  would  have  applied for the current school year but for the
 provisions of this section. The result is the target full value tax rate
 for the portion.
   (e) Determine the difference between the target full  value  tax  rate
 and the base full value tax rate for the portion.
   (f)  Divide  the difference so determined by the total number of years
 in the phase-in period applicable to the school district.
   (g) Multiply the quotient so determined by the number  of  years  from
 the  beginning  of  the phase-in period up to and including the year for
 which the tax rate is being determined.
   (h) Add the product so determined to the base full value tax rate.
   (i) Divide the sum so determined by the applicable equalization  rate.
 The  quotient  is  the  assessed  value tax rate for the portion for the
 current school year. Provided, that if the sum of the real property  tax
 levies in all of the portions in the school district, using the assessed
 value  tax  rates  computed  pursuant to this subdivision, would yield a
 real property tax levy that is above or below the  total  real  property
 tax  levy specified in the school district budget for the current school
 year, the assessed value tax rates shall all be decreased  or  increased

 S. 5174                             3                            A. 5804
 
 proportionately  so  as  to  yield  the specified real property tax levy
 amount.
   4.  As  used herein the term "portion" means that part of an assessing
 unit located within a school district.
   § 2. This act shall take effect immediately.