STATE OF NEW YORK ________________________________________________________________________ 2910 2023-2024 Regular Sessions IN ASSEMBLY February 1, 2023 ___________ 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: 1 Section 1. Section 3613 of the education law, as added by section 6 of 2 part A of chapter 56 of the laws of 2014, is amended to read as follows: 3 § 3613. School district reorganizations and real property tax rates. 4 1. When two or more school districts propose to reorganize pursuant to 5 sections fifteen hundred eleven through fifteen hundred thirteen, 6 fifteen hundred twenty-four, fifteen hundred twenty-six, seventeen 7 hundred five, or eighteen hundred one through eighteen hundred three of 8 this chapter, and under the law that would otherwise be applicable, the 9 reorganization would have an impact upon the school tax rates within the 10 areas served by the school districts that existed prior to the reorgan- 11 ization, notwithstanding any other provision of law to the contrary, the 12 boards of education or trustees of all the school districts participat- 13 ing in the proposed reorganization may opt to have that impact deferred 14 for a one-year period and/or phased-in over a period as may be deter- 15 mined by the boards of education or trustees of all participating school 16 districts in the manner prescribed by this section but which shall not 17 exceed a [ten-year] twenty-year period. To exercise such option, the 18 boards of education or trustees of all participating school districts, 19 after conducting a public hearing, may adopt a resolution at least 20 forty-five days prior to the special district meeting at which the reor- 21 ganization vote will be held, to defer and/or phase-in the impact as 22 provided herein. If the board of education or trustees of any partic- 23 ipating school district does not approve such a resolution opting for a 24 common phase-in period, the provisions of this section shall not apply. 25 2. During the one-year deferral period, the tax rate for each portion 26 of the school district shall be calculated in the following manner: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03788-01-3
A. 2910 2 1 (a) Determine the assessed value tax rate that applied for the school 2 year immediately preceding the school year in which the reorganization 3 took effect. 4 (b) Multiply that assessed value tax rate by the state equalization 5 rate applicable to the portion for the school year immediately preceding 6 the school year in which the reorganization took effect. 7 (c) Divide the product so determined by the state equalization rate 8 applicable to the portion for the first school year of the reorganized 9 school district. The quotient is the assessed value tax rate for the 10 portion for that school year. Provided, that if the sum of the real 11 property tax levies in all of the portions in the school district, using 12 the assessed value tax rates computed pursuant to this subdivision, 13 would yield a real property tax levy that is above or below the total 14 real property tax levy specified in the school district budget for the 15 current school year, the assessed value tax rates shall all be decreased 16 or increased proportionately so as to yield the specified real property 17 tax levy amount. 18 3. During each year of a phase-in period, whose duration up to [ten] 19 twenty years shall have been determined by the boards of education or 20 trustees of the constituent school districts, the tax rate for each 21 portion of the reorganized school district shall be calculated in the 22 following manner: 23 (a) Determine the assessed value tax rate that applied for the school 24 year immediately preceding the school year in which the reorganization 25 took effect. 26 (b) Multiply that assessed value tax rate by the state equalization 27 rate applicable to the portion for the school year immediately preceding 28 the school year in which the reorganization took effect. The result is 29 the base full value tax rate of the portion. 30 (c) Determine the assessed value tax rate that would have applied in 31 the portion but for the provisions of this section. 32 (d) Multiply that assessed value tax rate by the state equalization 33 rate that would have applied for the current school year but for the 34 provisions of this section. The result is the target full value tax rate 35 for the portion. 36 (e) Determine the difference between the target full value tax rate 37 and the base full value tax rate for the portion. 38 (f) Divide the difference so determined by the total number of years 39 in the phase-in period applicable to the school district. 40 (g) Multiply the quotient so determined by the number of years from 41 the beginning of the phase-in period up to and including the year for 42 which the tax rate is being determined. 43 (h) Add the product so determined to the base full value tax rate. 44 (i) Divide the sum so determined by the applicable equalization rate. 45 The quotient is the assessed value tax rate for the portion for the 46 current school year. Provided, that if the sum of the real property tax 47 levies in all of the portions in the school district, using the assessed 48 value tax rates computed pursuant to this subdivision, would yield a 49 real property tax levy that is above or below the total real property 50 tax levy specified in the school district budget for the current school 51 year, the assessed value tax rates shall all be decreased or increased 52 proportionately so as to yield the specified real property tax levy 53 amount. 54 4. As used herein the term "portion" means that part of an assessing 55 unit located within a school district. 56 § 2. This act shall take effect immediately.