Relates to providing state aid to public school districts in which tax exempt entities are situated.
TITLE OF BILL: An act to amend the real property tax law, in relation to providing state aid to certain public school districts in which tax exempt entities are situated; and providing for the repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:: To provide compensation for lost property tax revenue for those public school districts in which 25 percent or more of the assessed value of real property is owned by tax exempt entities.
SUMMARY OF SPECIFIC PROVISIONS:: Section 1 adds a new section 546-a to the real property tax law to provide additional state aid to public school districts in which 25 percent or more of the total assessed value of real property therein is owned by tax exempt entities. The State Comptroller is directed to create an application form the district must use, and establish the date by which all applications must be submitted.
The Commissioner of the State Department of Education is directed to make payments, not to exceed $2.5 million each year in aggregate, to such district in compensation for lost revenue. In the event that the aggregate amount exceeds $2.5 million in any given year, such payments will be made on a proportional basis.
To prevent manipulation of assessed values to qualify for compensation, the annual increase in assessed value for any tax exempt property for the purposes of this chapter is limited to 2 percent, beginning with the base year of the 2012-13 assessment. roll. The Commissioner is also authorized to exclude any parcel, the assessed value of which he or she determines is artificially high and disproportionate to taxable similar properties within the district.
Section 2 is the effective date.
JUSTIFICATION:: Public school districts across the state are facing serious budgetary constraints, created by a combination of rising costs and diminishing tax base. Those constraints have forced significant cost-cutting measures, ranging from academic and athletic program eliminations to the lay-off of administrative and teaching staff. These constraints are particularly severe for school districts in which a significant portion of real property is owned by tax exempt entities, including religious institutions, not-for-profit organizations and public land.
Some districts have received specific supplemental aid from the state to compensate them for this subsequent loss of real property tax revenue. This legislation seeks to establish basic criteria for any public school district to qualify for such additional aid,. Under its provisions, any public school district in which 25 percent or more of its assessed real property value is tax exempt qualifies for compensatory aid from the state.
PRIOR LEGISLATIVE HISTORY:: New Bill.
FISCAL IMPLICATIONS:: The fiscal impact to the state will not exceed $2.5 million per year for ten years.
EFFECTIVE DATE:: The January 1 next succeeding the date on which the bill becomes law, and shall be deemed repealed after the 2022-23 assessment roll.
STATE OF NEW YORK ________________________________________________________________________ 4522 2013-2014 Regular Sessions IN SENATE April 8, 2013 ___________Introduced by Sen. TKACZYK -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the real property tax law, in relation to providing state aid to certain public school districts in which tax exempt enti- ties are situated; and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The real property tax law is amended by adding a new section 546-a to read as follows: S 546-A. STATE AID; EXEMPT LANDS OF TAX EXEMPT ENTITIES. 1. IN ANY PUBLIC SCHOOL DISTRICT IN WHICH MORE THAN TWENTY-FIVE PERCENT OF THE TOTAL ASSESSED VALUE OF REAL PROPERTY THEREIN, AS DETERMINED BY THE ASSESSOR OF SUCH DISTRICT, IS OWNED BY TAX EXEMPT ENTITIES, THE STATE SHALL MAKE PAYMENTS TO THOSE PUBLIC SCHOOL DISTRICTS IN ACCORDANCE WITH THIS SECTION. 2. THE COMPTROLLER SHALL CREATE THE FORM OF APPLICATION A PUBLIC SCHOOL DISTRICT MUST USE WHEN MAKING A SUBMISSION PURSUANT TO THIS SECTION. THE COMPTROLLER SHALL ALSO ESTABLISH THE DATE BY WHICH ALL APPLICATIONS MUST BE SUBMITTED. NO APPLICATIONS FOR PAYMENT SHALL BE ACCEPTED AFTER THE DATE ESTABLISHED BY THE COMPTROLLER. 3. THE COMMISSIONER SHALL MAKE PAYMENTS, THE AGGREGATE OF WHICH SHALL NOT EXCEED TWO MILLION FIVE HUNDRED THOUSAND DOLLARS PER YEAR, TO PUBLIC SCHOOL DISTRICTS, ELIGIBLE PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THAT HAVE MADE TIMELY APPLICATION THEREFOR. FOR EACH SUCH PUBLIC SCHOOL DISTRICT, THE PAYMENT SHALL BE COMPUTED AS FOLLOWS: (A) TAKE THE TOTAL VALUE OF REAL PROPERTY OWNED BY TAX EXEMPT ENTITIES IN THE PUBLIC SCHOOL DISTRICT MULTIPLIED BY THE APPLICABLE EQUALIZATION RATE,EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10008-03-3 S. 4522 2
(B) FROM THAT SUBTRACT TWENTY-FIVE PERCENT OF THE TOTAL VALUE OF ALL PROPERTY IN THE PUBLIC SCHOOL DISTRICT MULTIPLIED BY THE APPLICABLE EQUALIZATION RATE, (C) MULTIPLY THE DIFFERENCE BY THE TAX RATE FOR THE APPLICABLE PUBLIC SCHOOL DISTRICT. 4. IF THE TOTAL AGGREGATE AMOUNT OF PAYMENTS REQUESTED BY PUBLIC SCHOOL DISTRICTS EXCEEDS THE TWO MILLION FIVE HUNDRED THOUSAND DOLLAR CAP ALLOWED UNDER SUBDIVISION THREE OF THIS SECTION, THE COMPTROLLER SHALL MAKE THE PAYMENTS TO EACH PUBLIC SCHOOL DISTRICT ON A PROPOR- TIONATE BASIS. 5. THE COMMISSIONER SHALL PROMULGATE ALL RULES AND REGULATIONS NECES- SARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION. 6. WHEN CALCULATING THE ASSESSED VALUE OF ANY PARCEL OF PROPERTY FOR PURPOSES OF THIS SECTION, THE VALUE IN ANY YEAR MAY NOT BE GREATER THAN THE BASE YEAR PLUS TWO PERCENT FOR EACH ADDITIONAL YEAR BEYOND THE BASE YEAR. THE BASE YEAR FOR ALL PROPERTY FOR PURPOSES OF THIS SECTION SHALL BE THE ASSESSED VALUE OF SUCH PROPERTY FOR THE TWO THOUSAND TWELVE--TWO THOUSAND THIRTEEN ASSESSMENT ROLL. 7. THE ASSESSED VALUE OF ANY PROPERTY THAT RECEIVES TAX EXEMPT STATUS AFTER THE EFFECTIVE DATE OF THIS SECTION MUST BE EQUIVALENT TO SIMILARLY SITUATED PARCELS. THE COMMISSIONER MAY REFUSE TO INCLUDE A PARCEL IN THE CALCULATIONS REQUIRED BY THIS SECTION IF THE COMMISSIONER DETERMINES THAT THE ASSESSED VALUE OF SUCH PARCEL IS ARTIFICIALLY HIGH AND DISPROPORTIONATE TO THE TAXABLE PARCELS LOCATED WITHIN THE PUBLIC SCHOOL DISTRICTS. S 2. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such effective date. This act shall expire and be deemed repealed following the 2022-23 assessment role. Effective immediately, any rules and regulations necessary to implement the provisions of this act on its effective date are authorized to be made on or before such date.