Relates to imposing a school impact tax on developers of non-senior housing developments to be used for the construction of new public kindergarten through twelfth grade schools.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3974
SPONSOR: Glick TITLE OF BILL:
An act to amend the administrative code of the city of New York, in
relation to imposing a school impact tax on developers of non-senior
housing developments
PURPOSE:
This Bill would allow for a school impact tax to be placed on developers
of non-senior housing developments in New York. Tax collected will be
put towards the construction of new K-12 schools.
SUMMARY OF PROVISIONS:
Section 1. Amends section 28-118.6 of the administrative code of the
city.
Section 2. Amends the administrative code of the city of New York by
adding section 11.238.1. The new section reads as follows:
a) A school impact tax is to be imposed on any developer or developers
of new or converted non-senior housing on a per-unit basis. The amount
is to be determined by the commissioner.
b) Developers or developers of new or converted non-senior housing will
be notified of such a tax when they receive their certificate of occu-
pancy.
c) The department of finance shall have the power to make and promulgate
the rules to carry out what is stated in this section including those
relating to the timing, form, manner and distribution of funds that are
collected.
d) Funds collected shall be for the use of construction of new public
kindergartens through twelfth grade schools.
e) Developers or developers are responsible for taxes that are owed and
face penalties that are in accordance with general, special or local
law.
Section 3. Establishes the effective date.
JUSTIFICATION:
Throughout New York City there has been a rapid increase in the number
of new residential units, either by the construction of new buildings or
through the conversion. As a result of the emphasis put on residential
unit construction, the construction of new public K-12 schools has not
been able to keep pace.
Currently New York City public schools are funded in part by local tax
revenues, including property tax and non-property tax revenue and the
introduction of school impact tax on developers of new or converted
non-senior housing would help provide needed funding for the
construction of new K-12 schools.
LEGISLATIVE HISTORY:.
2021-22: A.5777 Referred to cities
2019-20: Referred to cities
2017-18: Referred to cities
2016: Referred to cities
FISCAL IMPLICATIONS:
To be determined
EFFECTIVE DATE:
This act will take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
3974
2023-2024 Regular Sessions
IN ASSEMBLY
February 8, 2023
___________
Introduced by M. of A. GLICK, COOK, WALKER, SIMON -- read once and
referred to the Committee on Cities
AN ACT to amend the administrative code of the city of New York, in
relation to imposing a school impact tax on developers of non-senior
housing developments
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 28-118.6 of the administrative code of the city of
2 New York is amended by adding a new subdivision 15 to read as follows:
3 15. The amount to be taxed to the developer or developers of new or
4 converted non-senior housing under the school impact tax pursuant to
5 section 11-238.1 of this code.
6 § 2. The administrative code of the city of New York is amended by
7 adding a new section 11-238.1 to read as follows:
8 § 11-238.1 School impact tax on non-senior housing developments. a.
9 Imposition of tax. A school impact tax is hereby imposed on any devel-
10 oper or developers of new or converted non-senior housing on a per-unit
11 basis, in an amount determined by the commissioner.
12 b. Notice of tax. Any developer or developers of new or converted
13 non-senior housing shall be notified of such school impact tax when they
14 receive their certificate of occupancy pursuant to section 28-118.6 of
15 this code.
16 c. Rules. The department of finance shall have, in addition to any
17 other functions, powers and duties which have been or may be conferred
18 on it by law, the power to make and promulgate rules to carry out the
19 purposes of this section, including, but not limited to, rules related
20 to the timing, form, manner and distribution of funds collected pursuant
21 to this section.
22 d. Purpose of tax. All funds collected pursuant to this section shall
23 be specifically designated for the construction of new public kindergar-
24 ten through twelfth grade schools.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02990-01-3
A. 3974 2
1 e. Penalties. Notwithstanding any provision of any general, special or
2 local law to the contrary, a developer or developers shall be personally
3 responsible for any taxes owed pursuant to this section whenever such
4 developer or developers fail to comply with this section or the rules
5 promulgated hereunder, or make a false or misleading statement or omis-
6 sion and the commissioner determines that such act was due to the devel-
7 oper or developers' willful neglect, or that under such circumstances
8 such act constituted a fraud on the department. The remedy provided
9 herein for an action in personam shall be in addition to any other reme-
10 dy or procedure for the enforcement of collection of delinquent taxes
11 provided by general, special or local law.
12 § 3. This act shall take effect immediately.
