NY State Senate Bill 2021-S6758A

Senate Bill S6758A

Signed By Governor

2021-2022 Legislative Session

Establishes a wind energy systems tax stabilization reserve fund in the Copenhagen Central School District to lessen or prevent increases in the school district's real property tax levy

download bill text pdf

Archive: Last Bill Status - Signed by Governor

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 02, 2021	signed chap.380
Jul 21, 2021	delivered to governor
Jun 10, 2021	returned to senate passed assembly ordered to third reading rules cal.732 substituted for a7781a referred to ways and means delivered to assembly passed senate
Jun 07, 2021	amended on third reading (t) 6758a
Jun 03, 2021	ordered to third reading cal.1503 committee discharged and committed to rules
May 14, 2021	referred to local government

Votes

- Jun 10, 2021 - Floor Vote
  S6758A
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 10, 2021
      
      aye (63)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
  Jun 3, 2021 - Rules Committee Vote
  S6758A
  
  21
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 3, 2021
      
      aye (21)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Comrie
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mayer
      
      O'Mara
      
      Ortt
      
      Parker
      
      Ritchie
      
      Savino
      
      Stewart-Cousins

Bill Amendments

Original

A (Active)

2021-S6758 - Details

See Assembly Version of this Bill:: A7781
Law Section:: Real Property Taxation

2021-S6758 - Summary

Establishes an energy system tax stabilization reserve fund in the Copenhagen Central School District to lessen or prevent increases in the school district's real property tax levy resulting from decreases in revenue due to changes in or termination of the payments in lieu of taxes receivable by the school district.

2021-S6758 - Sponsor Memo

                                
 
BILL NUMBER: S6758

SPONSOR: GRIFFO
 
TITLE OF BILL:

An act to establish an energy system tax stabilization reserve fund in
the Copenhagen Central School District to lessen or prevent increases in
the school district's real property tax levy

 
PURPOSE OR GENERAL IDEA OF BILL:

To allow the Copenhagen Central School District to establish a real
property tax stabilization fund out of part of the proceeds of a payment
in lieu of taxes (PILOT) agreement from various wind farms.  Upon termi-
nation or decrease of the PILOT payments, transfers from the fund would
ease a transition in the tax levy so that taxpayers do not have to bear
a sudden spike in real property taxes.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one: The legislative findings section recognizes that the school

district's current receipt of significant PILOT payments from wind
developments will at some point either terminate or significantly
decrease, which could result in a massive destabilization of the
district's tax base and the amount of its tax levy to meet current budg-
et levels.

Section two: This section makes definitions of important terms in the
bill, including providing that PILOT payments may mean either PILOTS
under Real Property Tax Law Section 487 permitting municipalities to
enter into PILOT agreements for wind energy systems or Subdivision
fifteen of § 858 of the General Municipal Law (authorizing IDA created
PILOTs) and adopting the definition of wind energy systems already found
in Real Property Tax Law § 487.

Section three: This section permits the school district to create a tax
stabilization fund if the fund shall be approved in a separate ballot
proposition by a majority of voters in a special district election or in
the annual district meeting and election. The proposition must set forth
the maximum allowable balance for the fund. After the establishment of
the fund, the board of education may make payments into the fund in the
following manner and from the following sources: (a) money from the
district's unassigned fund balance which accrued prior to the establish-
ment of the tax stabilization fund in an amount not to exceed the amount
over any maximum allowable balance in the unassigned fund balance and/or
money from authorized or required reserve funds which accrued prior to
the establishment of the tax stabilization fund and in amounts which the
Board of Education are not necessary for the purpose of such fund or
funds and (b) all or part of any portion of the amount by which the
amount of the PILOT payment received in any budget year exceeds the
amount of PILOT payment received in the preceding budget year. No such
payment may cause the fund to exceed the maximum balance approved by the
voters. This section further provides that funds may be withdrawn from
the fund for any lawful purpose. Such withdrawals would be subject to
the usual disclosures required for withdrawals from other reserve funds
including disclosures required by the property tax report card. Deposits
and withdrawals would be subject to the district's normal annual budget
process. All money in the fund is to be deposited, invested, and

accounted for under the requirements of subdivisions 2 and 6 of section
3651 and 3652 of the Education law.

Section four: Provides for an immediate effective date.

 
JUSTIFICATION:

The district requires the approval given in this bill to use accumulated
fund balance and PILOT revenues to establish a tax stabilization fund
which will one day be equal to the task of smoothing the transition that
will be required by ramping up the tax levy over a period of time.
Absorbing all of the loss or decrease in the PILOT in one or two years
would cause a severe spike in the tax levy, dramatic slashing of
programs or both. The bill contains significant safeguards to insure the
dedication of PILOT funds for this purpose.

At present, the district is accumulating significant funds from the
PILOT, which exceed allowable fund balance. This legislation seeks
authorization to establish a tax stabilization reserve fund to insure
that future decrease or loss of the PILOT payments will not cause a
dramatic and onerous spike in the real property tax levy. The district
seeks permission through this legislation to prudently use these funds
to promote fiscal and tax stability. The Senate and Assembly have
authorized similar funds within the last decade, including the Lowville
Central School District, which is also located in Lewis County.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

None for the State of New York. Positive impact on the district's fiscal
and tax levy stability.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S6758 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6758
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 14, 2021
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to establish an energy system tax stabilization reserve  fund  in
   the  Copenhagen 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 wind energy systems located within
 the Copenhagen Central School District may result in instability in  the
 real property tax base and the budgets of the district due to the uncer-
 tainty  with  the  assessments of such wind energy systems and the vari-
 ability of payments in lieu of taxes prior to and after the payments  in
 lieu of taxes terminate.
   § 2. Definitions. As used in this act:
   (a)  "Board  of  education" or "board" means the board of education of
 the Copenhagen Central School District.
   (b) "Energy system tax stabilization reserve fund" or "fund" means the
 energy system tax stabilization 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  487 of the real property tax law or
 subdivision 15 of section 858 of the general municipal law on  any  wind
 farm  energy  system  located  wholly or partially within the Copenhagen
 Central School District.
   (d) "School district"  or  "district"  means  the  Copenhagen  Central
 School District.
   (e)  "Wind  energy  systems" shall be defined as in section 487 of the
 real property tax law and shall include the land upon which  the  system
 is located, any equipment used in such generation, and equipment leading
 from the system to the interconnection with the transmission system.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11364-01-1

 S. 6758                             2
 
   § 3. The board of education is hereby authorized to establish an ener-
 gy  system 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 changes in or termination of the payments in  lieu  of
 taxes receivable by the school district; provided, however, that no such
 fund  shall  be  established  unless  approved by a majority vote of the
 voters 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 article 41 of
 the education law.  Such separate proposition shall set forth the  maxi-
 mum  allowable  balance  to  be  deposited and held in the energy system
 stabilization reserve fund. Moneys shall be paid into and withdrawn from
 the fund and the fund shall be administered as follows:
   (a) The board of education is hereby authorized to make payments  into
 the  energy  system  tax  stabilization  reserve  fund  with  funds from
 payments in lieu of taxes, as defined in subdivision (c) of section  two
 of  this  act  which  accrued  prior  to the establishment of the energy
 system tax stabilization reserve fund in an amount  not  to  exceed  the
 balance  over  any  maximum  allowable  balance  in such unassigned fund
 balance and from any reserve funds authorized  or  required  by  law  in
 amounts  which the board of education shall determine are not reasonably
 necessary for the purpose of such fund or funds and which accrued  prior
 to the establishment of the energy system tax stabilization reserve fund
 provided  that  no  such payment from any unassigned fund balance or any
 reserve fund shall cause the balance of the fund to  exceed  the  amount
 approved in the ballot proposal described above.
   (b) For any school district fiscal year commencing after the effective
 date  of  this  act  and  after  the  establishment of the energy system
 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 payments received by
 the school district for the preceding fiscal year provided that no  such
 payment  into  the  reserve  fund shall cause the balance of the fund to
 exceed the amount approved in the ballot proposal described above.
   (c) Moneys may be withdrawn from the energy system  tax  stabilization
 reserve  fund for any fiscal year to be expended for any lawful purpose.
 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 withdrawals made in each
 fiscal year shall be subject to the district's  annual  budget  approval
 process.
   (d)  The  moneys in the energy system 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.
   § 4. This act shall take effect immediately.

2021-S6758A (ACTIVE) - Details

See Assembly Version of this Bill:: A7781
Law Section:: Real Property Taxation

2021-S6758A (ACTIVE) - Summary

2021-S6758A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6758A

SPONSOR: GRIFFO
 
TITLE OF BILL:

An act to establish a wind energy systems tax stabilization reserve fund
in the Copenhagen Central School District to lessen or prevent increases
in the school district's real property tax levy

 
PURPOSE OR GENERAL IDEA OF BILL:

To allow the Copenhagen Central School District to establish a real
property tax stabilization fund out of part of the proceeds of a payment
in lieu of taxes (PILOT) agreement from various wind farms. Upon termi-
nation or decrease of the PILOT payments, transfers from the fund would
ease a transition in the tax levy so that taxpayers do not have to bear
a sudden spike in real property taxes.

 
SUMMARY OF PROVISIONS:

Section one: The legislative findings section recognizes that the school

district's current receipt of significant PILOT payments from wind
developments will at some point either terminate or significantly
decrease, which could result in a massive destabilization of the
district's tax base and the amount of its tax levy to meet current budg-
et levels.

Section two: This section makes definitions of important terms in the
bill, including providing that PILOT payments may mean either PILOTS
under Real Property Tax Law Section 487 permitting municipalities to
enter into PILOT agreements for wind energy systems or Subdivision
fifteen of § 858 of the General Municipal Law (authorizing IDA created
PILOTs) and adopting the definition of wind energy systems already found
in Real Property Tax Law § 487.

Section three: This section permits the school district to create a wind
energy systems tax stabilization reserve fund if the fund shall be
approved in a separate ballot proposition by a majority of voters in a
special district election or in the annual district meeting and
election. The proposition' must set forth the maximum allowable balance
for the fund. After the establishment of the fund, the board of educa-
tion may make payments into the fund all or part of any portion of the
amount by which the amount of the PILOT payment received in any budget
year exceeds the amount of PILOT payment received in the preceding budg-
et year. No such payment may cause the fund to exceed the maximum
balance approved by the voters. This section further provides that funds
may be withdrawn from the fund for any lawful purpose. Such withdrawals
would be subject to the usual disclosures required for withdrawals from
other reserve funds including disclosures required by the property tax
report card.  Deposits and withdrawals would be subject to the
district's normal annual budget process. All money in the fund is to be
deposited, invested, and accounted for under the requirements of subdi-
visions 2 and 6 of section 3651 and 3652 of the Education law.

Section four: Provides for an immediate effective date.

 
JUSTIFICATION:


The district requires the approval given in this bill to use PILOT
revenues to establish a tax stabilization fund which will one day be
equal to the task of smoothing the transition that will be required by
ramping up the tax levy over a period of time.  Absorbing all of the
loss or decrease in the PILOT in one or two years would cause a severe
spike in the tax levy, dramatic slashing of programs or both. The bill
contains significant safeguards to insure the dedication of PILOT funds
for this purpose.

This legislation seeks authorization to establish a wind energy systems
tax stabilization reserve fund to ensure that future decrease or loss of
the PILOT payments will not cause a dramatic and onerous spike in the
real property tax levy. The district seeks permission through this
legislation to prudently use these funds to promote fiscal and tax
stability.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None for the State of New York. Positive impact on the district's fiscal
and tax levy stability.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S6758A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6758--A
     Cal. No. 1503
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 14, 2021
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
   printed to be committed  to  the  Committee  on  Local  Government  --
   committee discharged and said bill committed to the Committee on Rules
   --  ordered to a third reading, amended and ordered reprinted, retain-
   ing its place in the order of third reading

 AN ACT to establish a wind energy systems tax stabilization reserve fund
   in the  Copenhagen  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 wind energy  systems  project  or
 projects  located  within  the  Copenhagen  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 wind
 energy systems project or projects and the variability  of  payments  in
 lieu of taxes prior to and at termination of such payments.
   § 2. Definitions. As used in this act:
   (a)  "Board  of  education" or "board" means the board of education of
 the Copenhagen Central School District.
   (b) "Wind energy systems tax stabilization  reserve  fund"  or  "fund"
 means  the wind energy systems tax stabilization fund established pursu-
 ant 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  487 of the real property tax law or
 subdivision 15 of section 858 of the general municipal law on  any  wind
 farm  energy  system  located  wholly or partially within the Copenhagen
 Central School District.
   (d) "School district"  or  "district"  means  the  Copenhagen  Central
 School District.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD11364-03-1

 S. 6758--A                          2
 
   (e)  "Wind  energy systems project or projects" shall be defined as in
 section 487 of the real property tax law and shall include the land upon
 which the system is located, any equipment used in such generation,  and
 equipment leading from the system to the interconnection with the trans-
 mission system.
   § 3. Wind energy systems tax stabilization reserve fund.  The board of
 education  is  hereby  authorized to establish a wind energy systems 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 changes in the amount of or termination of the payments  in  lieu
 of  taxes  receivable 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
 proposition 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  article 41 of the education law.  Moneys shall be paid
 into and withdrawn from the fund and the fund shall be  administered  as
 follows:
   (a) For any school district fiscal year commencing after the effective
 date  of this act and after the establishment of the wind energy systems
 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 the ballot proposal described
 above.
   (b) Moneys may be withdrawn from the energy system  tax  stabilization
 reserve  fund for any fiscal year to be expended for any lawful purpose.
 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 withdrawals made in each
 fiscal year shall be subject to the district's  annual  budget  approval
 process.
   (c)  The  moneys  in the wind energy systems 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.
   § 4. This act shall take effect immediately.

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