S. 9188 2
(C) "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A SCHOOL DISTRICT IN
PERFORMING OR ADMINISTERING A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE SCHOOL DISTRICT ON ACCOUNT OF THE
MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
(I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
(II) STATE OR FEDERAL AID PAID SPECIFICALLY OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
(III) AN OFFSETTING SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
2. FUNDING OF SCHOOL DISTRICT MANDATES. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH CREATES AN
ANNUAL NET ADDITIONAL COST TO ANY SCHOOL DISTRICT IN EXCESS OF TEN THOU-
SAND DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL COST TO ALL SCHOOL
DISTRICTS IN EXCESS OF ONE MILLION DOLLARS.
3. EXEMPTIONS TO THE FUNDING OF SCHOOL DISTRICT MANDATES REQUIREMENT.
(A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR EXPANDED PROGRAMS
FOR SCHOOL DISTRICTS IF:
(I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
(II) THE MANDATE IS PROVIDED AT THE OPTION OF THE SCHOOL DISTRICT
UNDER A LAW OR REGULATION;
(III) THE MANDATE RESULTS FROM THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A SCHOOL DISTRICT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM OR
SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
UPON THAT SCHOOL DISTRICT WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
(IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING THEIR EMERGENCY POWERS;
(V) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE ORDER RESULTS IN COSTS WHICH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT; OR
(VI) THE MANDATE APPLIES TO A SMALL BUSINESS WITH FIFTY EMPLOYEES OR
LESS.
(B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON SCHOOL DISTRICTS SHALL BE CONSISTENT
WITH THE NEEDS OF THE STATE AND SCHOOL DISTRICTS TO PLAN IMPLEMENTATION
THEREOF, AND ALSO CONSISTENT WITH THE AVAILABILITY OF REQUIRED FUNDS.
§ 2. Section 2022 of the education law is amended by adding a new
subdivision 8 to read as follows:
8. A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION
TO THE CONTRARY, IN A COMMON, UNION FREE, CENTRAL, CENTRAL HIGH SCHOOL
DISTRICT OR SCHOOL DISTRICT, UPON THE FILING OF A PETITION PURSUANT TO
PARAGRAPH B OF THIS SUBDIVISION, WITH THE TRUSTEES, THE BOARD OF EDUCA-
TION OR THE CHANCELLOR OF A CITY SCHOOL DISTRICT LOCATED IN A CITY WITH
GREATER THAN ONE MILLION INHABITANTS SHALL SUBMIT A PROPOSITION FOR THE
PURPOSE OF VOTING ON THE QUESTION "SHALL THE SCHOOL DISTRICT ENTER INTO
THE OPTIONAL SYSTEM OF STATE FUNDING FOR SCHOOL DISTRICT EXPENSES" TO
THE QUALIFIED VOTERS OF A SCHOOL DISTRICT. SUCH VOTE SHALL BE HELD ON
THE THIRD TUESDAY IN MAY, PROVIDED, HOWEVER, THAT SUCH VOTE SHALL BE
HELD ON THE SECOND TUESDAY IN MAY IF THE COMMISSIONER AT THE REQUEST OF
A LOCAL SCHOOL BOARD OR THE CHANCELLOR IN THE CITY OF NEW YORK CERTIFIES
NO LATER THAN MARCH FIRST THAT SUCH ELECTION WOULD CONFLICT WITH RELI-
S. 9188 3
GIOUS OBSERVANCES. IF A DISTRICT VOTES TO JOIN THE OPTIONAL SYSTEM THAT
VOTE IS BINDING AND MAY NOT BE ALTERED BY THE DISTRICT OR ITS RESIDENTS.
B. SUCH PETITION RELATING TO THE OPTIONAL SYSTEM FOR STATE FUNDING OF
SCHOOL DISTRICT EXPENSES SHALL BE SUBMITTED NO LATER THAN APRIL FIRST OF
THE SCHOOL YEAR IN WHICH SUCH QUESTION DESCRIBED IN PARAGRAPH A OF THIS
SUBDIVISION SHALL BE CONSIDERED BY THE VOTERS AND MUST BE SIGNED BY
TWENTY-FIVE PERCENT OF THE NUMBER OF QUALIFIED VOTERS. ANY VALID PETI-
TION CONTAINING A SUFFICIENT NUMBER OF VALID SIGNATURES TO PLACE THE
QUESTION DESCRIBED IN PARAGRAPH A OF THIS SUBDIVISION ON THE BALLOT
SUBMITTED AFTER APRIL FIRST AND BEFORE JULY FIRST SHALL BE VOTED ON THE
THIRD TUESDAY IN MAY, PROVIDED, HOWEVER, THAT SUCH VOTE SHALL BE HELD ON
THE SECOND TUESDAY IN MAY IF THE COMMISSIONER AT THE REQUEST OF A LOCAL
SCHOOL BOARD CERTIFIES NO LATER THAN MARCH FIRST THAT SUCH ELECTION
WOULD CONFLICT WITH RELIGIOUS OBSERVANCES OF THE FOLLOWING SCHOOL YEAR.
§ 3. Section 3602 of the education law is amended by adding a new
subdivision 40 to read as follows:
40. OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT EXPENSES. IN
ADDITION TO OTHER APPORTIONMENTS OF AID MADE TO DISTRICTS PURSUANT TO
THIS SECTION, ADDITIONAL APPORTIONMENTS SHALL BE MADE TO DISTRICTS WHICH
ELECT TO RECEIVE AID PURSUANT TO THIS SUBDIVISION. A. DEFINITIONS. AS
USED IN THIS SUBDIVISION: (1) "PRIMARY RESIDENTIAL REAL PROPERTY TAX
LEVY" SHALL BE DEFINED AS THE AGGREGATE PROPERTY TAXES LEVIED BY A
SCHOOL DISTRICT ON A SCHOOL DISTRICT'S STAR ELIGIBLE PROPERTIES AS
DEFINED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX
LAW.
(2) "BASE YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY" SHALL BE
DEFINED AS THE PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY IN THE SCHOOL
YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH THE SCHOOL DISTRICT VOTES
TO ENTER INTO THE OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT
EXPENSES PURSUANT TO SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWENTY-
TWO OF THIS CHAPTER.
B. TRANSITION PERIOD. (1) A SCHOOL DISTRICT SHALL CERTIFY TO THE
COMMISSIONER WITHIN THIRTY DAYS OF THE DATE AT WHICH THE VOTE WAS TAKEN
PURSUANT TO SUBDIVISION EIGHT OF SECTION TWO THOUSAND TWENTY-TWO OF THIS
CHAPTER WHETHER OR NOT QUALIFIED VOTERS OF THE DISTRICT HAVE ELECTED TO
ENTER INTO THE OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT
EXPENSES. ONCE THE COMMISSIONER DETERMINES THAT A DISTRICT HAS OPTED
INTO THE OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT EXPENSES
THE DISTRICT SHALL BEGIN RECEIVING AID PURSUANT TO THIS SUBDIVISION IN
THE SCHOOL YEAR WHICH BEGINS ON JULY FIRST IN THE SUBSEQUENT CALENDAR
YEAR.
(2) SCHOOL DISTRICTS WHICH RECEIVE AID PURSUANT TO THIS SUBDIVISION
SHALL RECEIVE AID PURSUANT TO THE SCHEDULE CONTAINED IN THIS PARAGRAPH.
SCHOOL DISTRICTS SHALL CONTINUE TO RECEIVE AID PURSUANT TO THIS PARA-
GRAPH AFTER THE PHASE IN PERIOD EQUAL TO ONE HUNDRED PERCENT OF THE BASE
YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY.
(3) DURING THE FIRST YEAR OF THE TRANSITION PERIOD, SCHOOL DISTRICTS
SHALL RECEIVE AN ADDITIONAL APPORTIONMENT EQUAL TO TWENTY PER CENTUM OF
THE BASE YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY. IN ALL SUBSE-
QUENT YEARS OF THE TRANSITION PERIOD, SCHOOL DISTRICTS SHALL RECEIVE AN
ADDITIONAL APPORTIONMENT EQUAL TO THE FOLLOWING SCHEDULE:
PERCENT OF BASE
YEAR YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY
2 40%
3 60%
4 80%
S. 9188 4
5 100%
IN EVERY YEAR AFTER YEAR FIVE SUCH ADDITIONAL APPORTIONMENT SHALL BE
INCREASED ANNUALLY BY A COST OF LIVING INCREASE. THE COST OF LIVING
INCREASE SHALL BE ADDED TO THE ADDITIONAL APPORTIONMENT PROVIDED IN THE
PRIOR YEAR. THE COST OF LIVING INCREASE SHALL BE CALCULATED AS THE
PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX FOR THE PREVIOUS TWELVE
MONTHS AS DETERMINED BY THE COMMISSIONER. SUCH PERCENTAGE INCREASE SHALL
BE MULTIPLIED BY THE PREVIOUS YEAR'S ADDITIONAL APPORTIONMENT AND THE
PRODUCT SHALL BE ADDED TO THE PREVIOUS YEAR'S ADDITIONAL APPORTIONMENT
TO CALCULATE THE CURRENT YEAR'S ADDITIONAL APPORTIONMENT.
(4) (I) A PARTICIPATING DISTRICT SHALL REDUCE THE PRIMARY RESIDENTIAL
REAL PROPERTY TAX LEVY PURSUANT TO THE SCHEDULE CONTAINED IN THIS PARA-
GRAPH. SCHOOL DISTRICTS OPTING INTO THE OPTIONAL SYSTEM FOR STATE FUND-
ING OF SCHOOL DISTRICT EXPENSES MAY NOT LEVY TAXES IN EXCESS OF THE
REMAINDER OF THE BASE YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY
LESS THE AID PROVIDED IN SUBPARAGRAPH THREE OF THIS PARAGRAPH EXCEPT TO
FUND THE DIFFERENCE BETWEEN A DISTRICT'S CURRENT YEAR CAPITAL EXPENSES
LESS THE STATE AID APPORTIONED FOR SUCH PURPOSE.
(II) NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW, RULE OR REGULATION
TO THE CONTRARY, A SCHOOL DISTRICT WHICH RECEIVES AID PURSUANT TO THIS
SUBDIVISION SHALL BE AUTHORIZED TO SET SEPARATE TAX WARRANTS AND TAX
RATES FOR THE PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY AND OTHER TAXA-
BLE PROPERTIES.
(5) THE APPORTIONMENT HEREUNDER SHALL NOT BE MADE UNTIL THE ELECTING
SCHOOL DISTRICT HAS CERTIFIED TO THE COMMISSIONER THAT THE DISTRICT'S
PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY FOR THE SCHOOL YEAR IN WHICH
AID HAS BEEN ACCEPTED PURSUANT TO THIS PARAGRAPH, DOES NOT EXCEED THE
BASE YEAR PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY AS DEFINED IN THIS
SUBDIVISION LESS THE AID APPORTIONED PURSUANT TO THIS PARAGRAPH.
C. LOCAL FUNDING SHARE. IN EACH CITY HAVING A POPULATION OF ONE
HUNDRED TWENTY-FIVE THOUSAND OR MORE INHABITANTS FOR PURPOSES OF CALCU-
LATING THE LOCAL SHARE OF EXPENDITURES, THE AMOUNT OF THE REDUCTION IN
THE PRIMARY RESIDENTIAL REAL PROPERTY TAX LEVY MADE PURSUANT TO SUBPARA-
GRAPH FOUR OF PARAGRAPH B OF THIS SUBDIVISION SHALL BE DEEMED TO BE
INCORPORATED IN THE CITY SHARE OF EXPENDITURES FOR THE CITY SCHOOL
DISTRICT.
D. STATE FINDING OF PROGRAM. THE LEGISLATURE SHALL ANNUALLY APPROPRI-
ATE AN AMOUNT SUFFICIENT TO SUPPORT ALL AID PAYMENTS INCURRED PURSUANT
TO THIS SUBDIVISION.
E. PAYMENT SCHEDULE. THE COMMISSIONER SHALL DEVELOP A PAYMENT SCHEDULE
FOR AID PAYMENTS DUE AND PAYABLE PURSUANT TO THIS SUBDIVISION AND SUCH
SCHEDULE SHALL BE APPROVED BY THE DIRECTOR OF THE BUDGET BEFORE SUCH
PAYMENT SCHEDULE TAKES EFFECT.
§ 4. The real property tax law is amended by adding a new section 431
to read as follows:
§ 431. PERSONS SIXTY-FIVE YEARS OF AGE OR OVER; CAPPED REAL PROPERTY
SCHOOL TAX RATE. 1. (A) RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY
ONE OR MORE PERSONS, EACH OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER AND
MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR
CITIZENS SET FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS TITLE, OR
RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED BY A MARRIED COUPLE, ONE OF
WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER AND MEETS EACH OF THE REQUIRE-
MENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS TITLE, SHALL BE ELIGIBLE FOR
THE CAPPED REAL PROPERTY SCHOOL TAX RATE SET FORTH IN THIS SECTION,
S. 9188 5
PROVIDED THE SCHOOL DISTRICT, AFTER PUBLIC HEARING, ADOPTS A RESOLUTION
PROVIDING THEREFOR.
(B) FOR PURPOSES OF THIS SECTION, THE TERM "CAPPED REAL PROPERTY
SCHOOL TAX RATE" SHALL MEAN THE LOWER OF: (I) THE REAL PROPERTY SCHOOL
TAX RATE ESTABLISHED ON THE TAXABLE STATUS DATE NEXT SUCCEEDING THE DATE
ON WHICH AN ELIGIBLE PERSON ATTAINS THE AGE OF SIXTY-FIVE YEARS; OR (II)
THE REAL PROPERTY SCHOOL TAX RATE ESTABLISHED ON ANY TAXABLE STATUS DATE
SUBSEQUENT TO THE DATE ON WHICH AN ELIGIBLE PERSON ATTAINS THE AGE OF
SIXTY-FIVE YEARS, WHICH IS LOWER THAN THE REAL PROPERTY SCHOOL TAX RATE
ESTABLISHED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH.
(C) THE CAPPED REAL PROPERTY SCHOOL TAX RATE SHALL BE DETERMINED ANNU-
ALLY FOR EACH ELIGIBLE PERSON SIXTY-FIVE YEARS OF AGE OR OLDER IN
ACCORDANCE WITH THE PROVISIONS OF PARAGRAPHS (A) AND (B) OF THIS SUBDI-
VISION.
2. ANY PERSON ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE
SHALL APPLY ANNUALLY FOR SUCH CAPPED RATE. SUCH APPLICATION SHALL BE
MADE IN A MANNER AND FORM DETERMINED BY THE COMMISSIONER AND SHALL
REQUIRE PROOF OF THE APPLICANT'S AGE. SUCH APPLICATION SHALL BE FILED
WITH THE LOCAL ASSESSOR ON OR BEFORE THE TAXABLE STATUS DATE FOR SUCH
DISTRICT.
3. EVERY SCHOOL DISTRICT SHALL NOTIFY, OR CAUSE TO BE NOTIFIED, EACH
PERSON OWNING RESIDENTIAL REAL PROPERTY IN THE SCHOOL DISTRICT OF THE
PROVISIONS OF THIS SECTION. THE PROVISIONS OF THIS SUBDIVISION MAY BE
MET BY A NOTICE SENT TO SUCH PERSONS IN SUBSTANTIALLY THE FOLLOWING
FORM: "RESIDENTIAL REAL PROPERTY OWNED BY PERSONS SIXTY-FIVE YEARS OF
AGE OR OLDER MAY BE ELIGIBLE FOR A CAPPED REAL PROPERTY SCHOOL TAX RATE.
TO RECEIVE SUCH CAPPED RATE, ELIGIBLE OWNERS OF QUALIFYING PROPERTY MUST
FILE AN APPLICATION WITH THEIR LOCAL ASSESSOR ON OR BEFORE THE APPLICA-
BLE TAXABLE STATUS DATE. FOR FURTHER INFORMATION, PLEASE CONTACT YOUR
LOCAL ASSESSOR."
4. A SCHOOL DISTRICT WHICH PROVIDES A CAPPED REAL PROPERTY SCHOOL TAX
RATE FOR PERSONS SIXTY-FIVE YEARS OF AGE OR OVER PURSUANT TO THIS
SECTION SHALL BE ELIGIBLE FOR REIMBURSEMENT BY THE DEPARTMENT OF EDUCA-
TION, AS APPROVED BY THE COMMISSIONER OF EDUCATION, IN CONSULTATION WITH
THE EXECUTIVE DIRECTOR OF THE OFFICE OF REAL PROPERTY SERVICES, FOR ONE
HUNDRED PERCENT OF THE DIRECT COST TO SUCH SCHOOL DISTRICT RESULTING
FROM THE IMPLEMENTATION OF THIS SECTION. SUCH DIRECT COST SHALL BE
CALCULATED PURSUANT TO REGULATIONS OF THE COMMISSIONER OF EDUCATION, IN
CONSULTATION WITH THE COMMISSIONER. A CLAIM FOR SUCH REIMBURSEMENT
SHALL BE MADE BY SUCH SCHOOL DISTRICT IN A MANNER AND FORM PRESCRIBED BY
THE COMMISSIONER OF EDUCATION.
§ 5. The real property tax law is amended by adding a new section
431-a to read as follows:
§ 431-A. PERSONS SIXTY-FIVE YEARS OF AGE OR OLDER; FIXED REAL PROPERTY
ASSESSED VALUE. 1. RESIDENTIAL REAL PROPERTY OWNED AND OCCUPIED AS THE
PRIMARY RESIDENCE, OF ONE OR MORE PERSONS, EACH OF WHOM IS SIXTY-FIVE
YEARS OF AGE OR OLDER AND ALL OF WHOM HAVE A COMBINED ANNUAL INCOME OF
ONE HUNDRED THOUSAND DOLLARS OR LESS FOR THE INCOME TAX YEAR IMMEDIATELY
PRECEDING THE DATE OF APPLICATION OR RESIDENTIAL REAL PROPERTY OWNED AND
OCCUPIED AS THE PRIMARY RESIDENCE, OF A MARRIED COUPLE, ONE OF WHOM IS
SIXTY-FIVE YEARS OF AGE OR OLDER AND BOTH OF WHOM HAVE A COMBINED ANNUAL
INCOME OF ONE HUNDRED THOUSAND DOLLARS OR LESS FOR THE INCOME TAX YEAR
IMMEDIATELY PRECEDING THE DATE OF APPLICATION, SHALL BE ELIGIBLE FOR THE
FIXED REAL PROPERTY ASSESSED VALUE ESTABLISHED BY THIS SECTION.
2. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
S. 9188 6
(A) "FIXED REAL PROPERTY ASSESSED VALUE" SHALL MEAN THE LOWER OF:
(I) THE ASSESSED VALUE OF REAL PROPERTY ESTABLISHED ON THE TAXABLE
STATUS DATE NEXT SUCCEEDING THE DATE ON WHICH AN ELIGIBLE REAL PROPERTY
OWNER ATTAINS THE AGE OF SIXTY-FIVE YEARS; OR
(II) THE ASSESSED VALUE OF REAL PROPERTY ESTABLISHED ON ANY TAXABLE
STATUS DATE SUBSEQUENT TO THE DATE UPON WHICH AN ELIGIBLE REAL PROPERTY
OWNER ATTAINS THE AGE OF SIXTY-FIVE YEARS, WHICH IS LOWER THAN THE
ASSESSED VALUE ESTABLISHED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARA-
GRAPH.
(B) "RESIDENTIAL REAL PROPERTY" SHALL MEAN ANY ONE OR TWO FAMILY
DWELLING, INCLUDING CONDOMINIUM UNITS AND COOPERATIVE UNITS.
(C) "INCOME" SHALL MEAN THE "ADJUSTED GROSS INCOME" FOR FEDERAL INCOME
TAX PURPOSES AS REPORTED ON THE APPLICANT'S FEDERAL OR STATE INCOME TAX
RETURN FOR THE APPLICABLE INCOME TAX YEAR, SUBJECT TO ANY SUBSEQUENT
AMENDMENTS OR REVISIONS, REDUCED BY DISTRIBUTIONS, TO THE EXTENT
INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, RECEIVED FROM AN INDIVIDUAL
RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIREMENT ANNUITY; PROVIDED THAT
IF NO SUCH RETURN WAS FILED FOR THE APPLICABLE INCOME TAX YEAR, "INCOME"
SHALL MEAN THE ADJUSTED GROSS INCOME THAT WOULD HAVE BEEN SO REPORTED IF
SUCH A RETURN HAD BEEN FILED.
3. EACH TAXING AUTHORITY SHALL ANNUALLY DETERMINE THE FIXED REAL PROP-
ERTY ASSESSED VALUE FOR EACH ELIGIBLE REAL PROPERTY OWNER.
4. ANY PERSON ELIGIBLE FOR THE FIXED REAL PROPERTY ASSESSED VALUE
SHALL ANNUALLY APPLY TO THE APPROPRIATE ASSESSING UNIT FOR SUCH FIXED
ASSESSED VALUE. SUCH APPLICATION SHALL BE MADE IN SUCH MANNER AND FORM
AS SHALL BE DETERMINED BY THE COMMISSIONER, AND SHALL REQUIRE PROOF OF
THE APPLICANTS' AGES AND INCOMES. SUCH APPLICATIONS SHALL BE FILED ON OR
BEFORE THE TAXABLE STATUS DATE OF THE REAL PROPERTY.
5. EVERY ASSESSING UNIT SHALL NOTIFY OR CAUSE TO BE NOTIFIED, EACH
PERSON OWNING RESIDENTIAL REAL PROPERTY WITHIN ITS JURISDICTION, OF THE
PROVISIONS OF THIS SECTION. SUCH NOTICE SHALL BE AND INCLUDE WORDS WHICH
ARE SUBSTANTIALLY THE FOLLOWING: "RESIDENTIAL REAL PROPERTY OWNED BY
PERSONS SIXTY-FIVE YEARS OF AGE OR OLDER AND HAVING A COMBINED ANNUAL
INCOME OF ONE HUNDRED THOUSAND DOLLARS OR LESS, MAY BE ELIGIBLE FOR A
FIXED REAL PROPERTY ASSESSED VALUE. TO RECEIVE SUCH FIXED ASSESSED
VALUE, ELIGIBLE OWNERS OF QUALIFYING REAL PROPERTY MUST FILE AN APPLICA-
TION WITH THEIR LOCAL ASSESSOR ON OR BEFORE THE TAXABLE STATUS DATE. FOR
FURTHER INFORMATION, PLEASE CONTACT YOUR LOCAL ASSESSOR."
§ 6. The real property tax law is amended by adding a new section
906-a to read as follows:
§ 906-A. EFFECT OF FIXED REAL PROPERTY ASSESSED VALUE UPON TAXING
AUTHORITIES; STATE AID. 1. LEVY OF TAXES; DETERMINATION OF TAXES DUE.
THE AMOUNT OF TAXES TO BE LEVIED FOR ANY TAXABLE YEAR SHALL BE DETER-
MINED WITHOUT REGARD TO THE FACT THAT STATE AID WILL BE PAYABLE PURSUANT
TO THIS SECTION. IN ADDITION, THE TAX RATE FOR ANY TAXABLE YEAR SHALL BE
DETERMINED AS IF NO PARCELS ARE SUBJECT TO A FIXED REAL PROPERTY
ASSESSED VALUE PURSUANT TO SECTION FOUR HUNDRED THIRTY-ONE-A OF THIS
CHAPTER. HOWEVER, THE TAX RATE SO DETERMINED SHALL BE APPLIED TO THE
TAXABLE ASSESSED VALUE OF EACH PARCEL AFTER ACCOUNTING FOR ALL APPLICA-
BLE EXEMPTIONS.
2. TAX SAVINGS. THE TAX SAVINGS FOR EACH PARCEL SUBJECT TO A FIXED
REAL PROPERTY ASSESSED VALUE PURSUANT TO SECTION FOUR HUNDRED THIRTY-
ONE-A OF THIS CHAPTER SHALL BE COMPUTED BY SUBTRACTING THE AMOUNT ACTU-
ALLY LEVIED AGAINST THE PARCEL FROM THE AMOUNT THAT WOULD HAVE BEEN
LEVIED IF NOT FOR THE FIXED REAL PROPERTY ASSESSED VALUE. A STATEMENT
SHALL THEN BE PLACED ON THE TAX BILL FOR THE PARCEL IN SUBSTANTIALLY THE
S. 9188 7
FOLLOWING FORM: "YOUR TAX SAVINGS THIS YEAR RESULTING FROM THE FIXED
REAL PROPERTY ASSESSED VALUE IS $ ."
3. STATE AID. (A) THE TOTAL TAX SAVINGS DULY PROVIDED BY EACH TAXING
AUTHORITY PURSUANT TO THIS SECTION SHALL BE A STATE CHARGE, WHICH SHALL
BE PAYABLE AS PROVIDED IN THIS SUBDIVISION.
(B) A TAXING AUTHORITY SEEKING STATE AID PURSUANT TO THIS SECTION
SHALL SUBMIT AN APPLICATION THEREFOR TO THE COMMISSIONER. THE APPLICA-
TION SHALL INCLUDE SUCH INFORMATION AS THE COMMISSIONER SHALL REQUIRE.
IN ADDITION, EACH TAXING AUTHORITY SHALL FILE A COPY OF SUCH APPLICATION
WITH THE COUNTY CLERK OF THE COUNTY IN WHICH AN ELIGIBLE PARCEL IS SITU-
ATE.
(C) UPON APPROVING AN APPLICATION FOR STATE AID PURSUANT TO THIS
SECTION, THE COMMISSIONER SHALL COMPUTE AND CERTIFY THE AMOUNTS PAYABLE
TO THE TAXING AUTHORITY. SUCH STATE AID SHALL BE PAYABLE UPON THE AUDIT
AND WARRANT OF THE STATE COMPTROLLER FROM VOUCHERS CERTIFIED AND
APPROVED BY THE COMMISSIONER.
(D) THE COMMISSIONER MAY AUDIT AN APPLICATION FOR STATE AID PURSUANT
TO THIS SECTION WITHIN ONE YEAR AFTER AUTHORIZING PAYMENT THEREON. IF
THE COMMISSIONER SHOULD DISCOVER THAT A TAXING AUTHORITY HAS RECEIVED A
GREATER OR LESSER AMOUNT OF SUCH AID THAN IT SHOULD HAVE RECEIVED, THE
COMMISSIONER SHALL SO NOTIFY THE TAXING AUTHORITY, AND SHALL CAUSE THE
NEXT PAYMENT OF SUCH AID TO THE TAXING AUTHORITY TO BE ADJUSTED ACCORD-
INGLY.
4. INSTALLMENT PAYMENTS. WHEN REAL PROPERTY TAXES ARE PAYABLE IN
INSTALLMENTS PURSUANT TO LAW, THE TAX SAVINGS PROVIDED BY THIS SECTION
SHALL BE APPLY PROPORTIONALLY AGAINST THE RESPECTIVE INSTALLMENTS.
5. UNTIMELY PAYMENT OF TAXES. WHEN TAXES ON A PROPERTY SUBJECT TO A
FIXED REAL PROPERTY ASSESSED VALUE PURSUANT TO SECTION FOUR HUNDRED
THIRTY-ONE-A OF THIS CHAPTER ARE NOT PAID IN A TIMELY MANNER, INTEREST,
PENALTIES AND ANY OTHER APPLICABLE CHARGES SHALL BE IMPOSED ONLY AGAINST
THE BALANCE DUE AFTER THE TAX SAVINGS PROVIDED BY THIS SECTION HAVE BEEN
DEDUCTED FROM THE TAXES OWED.
§ 7. Paragraph (a) of subdivision 2 of section 1573 of the real prop-
erty tax law, as amended by section 1 of part Y of chapter 56 of the
laws of 2010, and as further amended by subdivision (b) of section 1 of
part W of chapter 56 of the laws of 2010, is amended and a new subdivi-
sion 3-b is added to read as follows:
(a) State assistance pursuant to subdivision one of this section shall
be payable in an amount not to exceed [five] FIFTEEN dollars per parcel
for an assessment roll upon which a revaluation is implemented in
accordance with an approved plan, and not to exceed two dollars per
parcel for any assessment roll upon which a revaluation is not imple-
mented in accordance with an approved plan. The amount payable on a per
parcel basis shall exclude parcels which are wholly exempt or assessed
by the commissioner.
3-B. (A) STATE ASSISTANCE SHALL BE PAYABLE IN A ONE-TIME PAYMENT OF UP
TO TWO DOLLARS PER PARCEL, EXCLUDING PARCELS WHICH ARE WHOLLY EXEMPT OR
ASSESSED BY THE COMMISSIONER, TO EVERY ASSESSING UNIT WHEN ALL SUCH
ASSESSING UNITS WHICH COMPRISE A SCHOOL DISTRICT COMPOSED OF MORE THAN
ONE ASSESSING UNIT REVALUE THEIR ASSESSMENTS AT ONE HUNDRED PERCENT
VALUE DURING THE SAME YEAR, AND THE ASSESSMENT ROLLS DERIVED THEREFROM
ARE FILED IN TWO THOUSAND TWENTY-SEVEN OR THEREAFTER. THE PROVISIONS OF
THIS PARAGRAPH SHALL APPLY ONLY TO THOSE PARCELS WITHIN SUCH SCHOOL
DISTRICT COMPOSED OF MULTIPLE ASSESSING UNITS, WHEN ALL SUCH ASSESSING
UNITS REVALUE ASSESSMENTS AT ONE HUNDRED PERCENT VALUE DURING THE SAME
YEAR.
S. 9188 8
(B) NO PROVISION OF THIS SUBDIVISION SHALL BE DEEMED TO LIMIT THE
ELIGIBILITY OF ANY ASSESSING UNIT TO RECEIVE STATE ASSISTANCE PURSUANT
TO SUBDIVISIONS ONE AND TWO OF THIS SECTION IN ADDITION TO THE STATE
ASSISTANCE GRANTED PURSUANT TO THIS SUBDIVISION.
(C) IF AN ASSESSING UNIT, AFTER HAVING RECEIVED STATE ASSISTANCE
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, REVERTS TO ASSESSMENT AT
LESS THAN ONE HUNDRED PERCENT OF THE VALUE WITHIN FOUR YEARS AFTER THE
RECEIPT OF SUCH AID, SUCH ASSESSING UNIT SHALL REMIT TO THE STATE A
PRORATED PORTION OF THE AID RECEIVED, EXCEPT THAT IN THE CASE OF A COUN-
TY ASSESSING UNIT, IF A CITY OR TOWN THEREIN REVERTS TO ASSESSMENT AT
LESS THAN ONE HUNDRED PERCENT OF VALUE WITHIN FIVE YEARS AFTER THE COUN-
TY'S RECEIPT OF SUCH AID, THE COUNTY SHALL REMIT TO THE STATE A PRORATED
PORTION OF THE AID RECEIVED.
§ 8. The general municipal law is amended by adding a new section 26
to read as follows:
§ 26. FUNDING OF MANDATES. 1. DEFINITIONS. AS USED IN THIS SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT
SHALL OTHERWISE REQUIRE:
(A) "MANDATE" MEANS:
(I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING PROGRAM WHICH A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE; OR
(II) ANY GENERAL LAW WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
RATION IS REQUIRED TO PROVIDE.
(B) "UNFUNDED MANDATE" SHALL MEAN:
(I) ANY STATE LAW, RULE, OR REGULATION WHICH CREATES A NEW PROGRAM OR
REQUIRES A HIGHER LEVEL OF SERVICE FOR AN EXISTING PROGRAM WHICH A
MUNICIPAL CORPORATION IS REQUIRED TO PROVIDE AND WHICH RESULTS IN A NET
ADDITIONAL COST TO THE MUNICIPAL CORPORATION;
(II) ANY ALTERATION IN FUNDING PROVIDED TO A MUNICIPAL CORPORATION FOR
THE PURPOSE OF DEFRAYING THE COSTS OF A PROGRAM WHICH IT IS REQUIRED TO
PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL COST TO THE MUNICIPAL
CORPORATION; OR
(III) ANY GENERAL LAW WHICH GRANTS A NEW PROPERTY TAX EXEMPTION OR
INCREASES AN EXISTING PROPERTY TAX EXEMPTION WHICH THE MUNICIPAL CORPO-
RATION IS REQUIRED TO PROVIDE, THEREBY RESULTING IN A NET ADDITIONAL
COST TO THE MUNICIPAL CORPORATION.
(C) "NET ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A LOCAL GOVERNMENT IN
PERFORMING OR ADMINISTERING A MANDATE AFTER SUBTRACTING THEREFROM ANY
REVENUES RECEIVED OR RECEIVABLE BY THE LOCAL GOVERNMENT ON ACCOUNT OF
THE MANDATED PROGRAM OR SERVICE, INCLUDING BUT NOT LIMITED TO:
(I) FEES CHARGED TO THE RECIPIENTS OF THE MANDATED PROGRAM OR SERVICE;
(II) STATE OR FEDERAL AID PAID SPECIFICALLY OR CATEGORICALLY IN
CONNECTION WITH THE PROGRAM OR SERVICE; AND
(III) AN OFFSETTING SAVINGS RESULTING FROM THE DIMINUTION OR ELIMI-
NATION OF ANY OTHER PROGRAM OR SERVICE DIRECTLY ATTRIBUTABLE TO THE
PERFORMANCE OR ADMINISTRATION OF THE MANDATED PROGRAM.
2. FUNDING OF MUNICIPAL CORPORATION MANDATES. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW, NO UNFUNDED MANDATE SHALL BE ENACTED WHICH
CREATES AN ANNUAL NET ADDITIONAL COST TO ANY MUNICIPAL CORPORATION IN
EXCESS OF TEN THOUSAND DOLLARS OR AN AGGREGATE ANNUAL NET ADDITIONAL
COST TO ALL MUNICIPAL CORPORATIONS IN EXCESS OF ONE MILLION DOLLARS.
S. 9188 9
3. EXCEPTIONS TO THE FUNDING OF THE MUNICIPAL CORPORATION MANDATES
REQUIREMENT. (A) THE STATE SHALL NOT BE REQUIRED TO FUND ANY NEW OR
EXPANDED PROGRAMS IF:
(I) THE MANDATE IS REQUIRED BY A COURT ORDER OR JUDGMENT;
(II) THE MANDATE IS PROVIDED AT THE OPTION OF THE LOCAL GOVERNMENT
UNDER A LAW, REGULATION, RULE, OR ORDER THAT IS PERMISSIVE RATHER THAN
MANDATORY;
(III) THE MANDATE RESULTS FROM THE PASSAGE OF A HOME RULE MESSAGE
WHEREBY A LOCAL GOVERNMENT REQUESTS AUTHORITY TO IMPLEMENT THE PROGRAM
OR SERVICE SPECIFIED IN THE STATUTE, AND THE STATUTE IMPOSES COSTS ONLY
UPON THAT LOCAL GOVERNMENT WHICH REQUESTS THE AUTHORITY TO IMPOSE THE
PROGRAM OR SERVICE;
(IV) THE MANDATE IS REQUIRED BY, OR ARISES FROM, AN EXECUTIVE ORDER OF
THE GOVERNOR EXERCISING THEIR EMERGENCY POWERS; OR
(V) THE MANDATE IS REQUIRED BY STATUTE OR EXECUTIVE ORDER THAT IMPLE-
MENTS A FEDERAL LAW OR REGULATION AND RESULTS FROM COSTS MANDATED BY THE
FEDERAL GOVERNMENT TO BE BORNE AT THE LOCAL LEVEL, UNLESS THE STATUTE OR
EXECUTIVE ORDER RESULTS IN COSTS WITH EXCEED THE COSTS MANDATED BY THE
FEDERAL GOVERNMENT.
(B) EACH ACT ESTABLISHING A MANDATE SHALL PROVIDE THAT THE EFFECTIVE
DATE OF ANY SUCH MANDATE IMPOSED ON MUNICIPAL CORPORATIONS SHALL BE
CONSISTENT WITH THE NEEDS OF THE STATE AND MUNICIPAL CORPORATIONS TO
PLAN IMPLEMENTATION THEREOF AND CONSISTENT WITH THE AVAILABILITY OF
REQUIRED FUNDS.
§ 9. The state finance law is amended by adding a new section 99-uu to
read as follows:
§ 99-UU. THE STATE EDUCATION FUND. 1. THERE IS HEREBY ESTABLISHED IN
THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF EDUCATION,
A SPECIAL FUND TO BE KNOWN AS THE "STATE EDUCATION FUND".
2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED FROM THE SALE OF
ANY LOTTERY TICKET WITHIN THE STATE LESS ANY EXPENDITURES REQUIRED FOR
THE OPERATION OF THE LOTTERY.
3. THE MONEYS IN SUCH FUND SHALL BE APPROPRIATED OR TRANSFERRED ONLY
FOR (I) ELEMENTARY AND SECONDARY EDUCATION FOR SCHOOLS WHICH CHOSE TO
USE THE OPTIONAL SYSTEM FOR STATE FUNDING OF SCHOOL DISTRICT EXPENSES
UNDER SUBDIVISION FORTY OF SECTION THIRTY-SIX HUNDRED TWO OF THE EDUCA-
TION LAW AND (II) MUNICIPALITIES AND SCHOOL DISTRICTS WHICH HAVE IMPOSED
ON THEM UNFUNDED MANDATES, AS SUCH TERM IS DEFINED IN SECTION TWENTY-SIX
OF THE GENERAL MUNICIPAL LAW.
4. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF EDUCATION.
§ 10. 1. The New York state comptroller in coordination with the
commissioners of state departments shall see that an extensive and inde-
pendent audit is conducted on all state departments and agencies to
identify potential cost saving measures and wasteful spending.
2. After the conclusion of the audit, the comptroller in coordination
with the commissioners of state departments shall ensure all identified
cost saving measures are implemented and wasteful spending is ended. All
monies saved from the implementation of such cost saving measures and
monies retained from the reduction of wasteful spending shall be depos-
ited into the state education fund established by section 99-uu of the
state finance law.
§ 11. 1. The legislature hereby declares that the real property tax
system in the state of New York needs to be examined and restructured in
order to provide significant property tax relief for the citizens of the
S. 9188 10
state. As such, it is determined that a blue ribbon commission on prop-
erty tax reform shall be established to examine the current ad valorem
property tax system and local education financing system of the state.
Such commission shall submit a report and recommendations to the gover-
nor and the legislature upon completion of such examination.
2. A blue ribbon commission on property tax reform is hereby created
to examine, evaluate and make recommendations on alternatives or modifi-
cations to the existing ad valorem real property tax system in this
state and alternative sources of funding for local education. The
commission shall be charged with examining and making recommendations on
specific areas of reform for local governments and school districts with
the goal of mitigating and reducing the property tax burden in the state
of New York. The subject areas to be examined shall include, but not be
limited to, the following:
(a) Accountability:
(i) inspector general for schools and local governments;
(ii) enhanced public disclosure of budget data; and
(iii) program to eliminate waste and fraud.
(b) Governance and structure of local governments and school
districts:
(i) shared services and/or consolidation of personnel and services;
(ii) shared services and/or consolidation of governmental units
including special districts;
(iii) size of municipal and school district governing boards; and
(iv) the school district election process and oversight.
(c) Property assessments:
(i) property valuation process by local assessors;
(ii) equalization rate process used by the office of real property
services;
(iii) countywide versus local assessment system;
(iv) review of state payments to local governments for state owned
land; and
(v) the definition, limits, qualifications of tax exempt properties.
(d) Spending and tax controls:
(i) limits on local levy growth;
(ii) limits on local tax rate growth;
(iii) limits on local spending growth;
(iv) prohibition on unfunded state mandates on local governments and
school districts;
(v) other state's limits on local spending and/or taxing authority;
and
(vi) a circuit breaker to limit percentage of income spent on property
taxes.
(e) Potential alternative sources of funding to property taxes:
(i) local/regional/state income tax;
(ii) sales tax;
(iii) blended revenue system; and
(iv) other potential revenue sources.
3. The blue ribbon commission on property tax reform shall be composed
of eleven members. The members, each to serve a term of one year shall
be appointed as follows: three members shall be appointed by the gover-
nor; three members shall be appointed by the temporary president of the
senate; three members shall be appointed by the speaker of the assembly;
one member shall be appointed by the minority leader of the assembly;
and one member shall be appointed by the minority leader of the senate.
Of the members appointed by the governor, one shall be an expert in the
S. 9188 11
field of municipal finance, one shall be an expert in the field of
education finance, and one shall be an expert on assessment adminis-
tration. The commission shall elect a chair, a vice-chair and a secre-
tary from amongst its members. Notwithstanding the provisions of section
74 of the public officers law, section 806 of the general municipal law
or any other provision of law, membership on the commission of any state
or municipal officer or employee shall not constitute the violation of
any code of ethics or a conflict of interest. The commission shall meet
at least monthly. Commissioner members shall chair subcommittees to
fully examine the five areas of reform. These subcommittees may be
appointed by the commission members. The subcommittees shall meet regu-
larly and report back to the full commission. Vacancies in the member-
ship of the commission and among its officers shall be filled in the
manner provided for original appointments.
4. The commission may employ and at pleasure remove such personnel as
it may deem necessary for the performance of its functions and fix their
compensation within the amount made available therefor.
5. The commission may meet within and without the state, shall hold
public hearings, and shall have all the powers of a legislative commit-
tee pursuant to the legislative law.
6. The members of the commission shall receive no compensation for
their services, but shall be allowed their actual and necessary expenses
incurred in the performance of their duties pursuant to this act.
7. To the maximum extent feasible, the commission shall be entitled to
request and receive, and shall utilize and be provided with such facili-
ties, resources and data of any department, division, board, bureau,
commission of agency of the state or any political subdivision thereof
as it may reasonably request to properly carry out its powers and duties
pursuant to this act.
8. The blue ribbon commission on property tax reform shall make a
final report to the governor and the legislature of its findings,
conclusions and recommendations on or before December 1, 2029, and shall
submit with such report such legislative proposals as it deems necessary
to implement its recommendations.
§ 12. This act shall take effect April 1, 2027 and shall apply to any
general or special law imposing mandates on municipal corporations or
school districts enacted on or after such effective date.
