Establishes the power plant tax assessment challenge reserve fund to prevent increases in the Northport-East Northport union free school district's real property tax levy and/or tax rate resulting from decreases in revenue or taxes or a significant shift in tax liability due to a tax certiorari settlement or judgment; defines terms; makes related provisions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6310A
SPONSOR: Brown K TITLE OF BILL:
An act relating to establishing the power plant tax assessment challenge
reserve fund
PURPOSE:
Establishes the Northport-East Northport LIPA power plant tax assessment
challenge reserve fund.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: The education law is amended by adding a new section 36.
Section 2: Identifies effective date.
JUSTIFICATION:
Tax certiorari challenges present a significant obstacle for our local
governments and school districts in their ability to remain fiscally
stable. When faced with a tax certiorari challenge, these entities must
decide whether to negotiate a settlement and suffer potentially large
losses in revenue, or to progress with costly legal proceedings. Adverse
judgments of this magnitude could have a crippling effect on taxpayers.
Towns and districts could be forced to cut services and programs that
are desperately needed by residents and our children. Allowing school
districts, the ability to plan for such challenges will protect taxpay-
ers. This bill will help decrease the impact of such settlements or
adverse judgments if, and when, they arise.
LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6310--A
2023-2024 Regular Sessions
IN ASSEMBLY
April 3, 2023
___________
Introduced by M. of A. K. BROWN -- read once and referred to the Commit-
tee on Education -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT relating to establishing the power plant tax assessment challenge
reserve fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings. The legislature hereby finds that the
2 tax certiorari settlement between Suffolk County and the Long Island
3 Power Authority regarding the Northport Power Plant may result in insta-
4 bility in the real property tax base and the budget of the Northport-
5 East Northport union free school district due to a decrease in revenue
6 or taxes and/or significant shift in tax liability to the taxpayers.
7 § 2. Definitions. As used in this act the following terms shall have
8 the following meanings:
9 (a) "Board of education" or "board" shall mean the board of education
10 of the Northport-East Northport union free school district.
11 (b) "Power plant tax assessment reserve fund" or "fund" shall mean the
12 power plant tax assessment reserve fund established pursuant to this
13 act.
14 (c) "School district" or "district" shall mean the Northport-East
15 Northport union free school district.
16 § 3. Power plant tax assessment reserve fund. The board of education
17 is hereby authorized to establish a power plant tax assessment reserve
18 fund to lessen or prevent increases in the school district's real prop-
19 erty tax levy and/or tax rate resulting from decreases in revenue or
20 taxes or a significant shift in tax liability due to a tax certiorari
21 settlement or judgment provided, however, that no such fund shall be
22 established unless approved by a majority vote of the voters present and
23 voting on a separate ballot proposition therefor at either a special
24 district meeting which the board of education may call for such purpose
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06715-02-3
A. 6310--A 2
1 or at the annual district meeting and election, to be noticed and
2 conducted in either case in accordance with article 41 of the education
3 law. Such separate proposition shall set forth the maximum allowable
4 balance to be deposited and held in the power plant tax assessment
5 reserve fund. Moneys shall be paid into and withdrawn from the fund and
6 the fund shall be administered as follows:
7 (a) For any school district fiscal year commencing after the effective
8 date of this act and after the establishment of the power plant tax
9 assessment reserve fund, the board of education may receive payments
10 into its power plant tax assessment reserve fund from any sources of
11 revenue resulting from a settlement with the Long Island Power Authori-
12 ty; provided that no payment into the fund shall cause the balance of
13 the fund to exceed the amount approved in the ballot proposition pursu-
14 ant to this subdivision.
15 (b) Moneys may be withdrawn from the power plant tax assessment
16 reserve fund by resolution of the board for any fiscal year, to be
17 expended for any lawful purpose, to lessen or prevent increases in the
18 district's tax levy and/or tax rate. Withdrawals from the fund shall be
19 disclosed in a manner consistent with the required disclosures of simi-
20 lar reserve funds held by the district, including disclosures required
21 by the property tax report card prepared by the district pursuant to the
22 provisions of subdivision 7 of section 1716 of the education law; and
23 deposits and withdrawals made in each fiscal year shall be subject to
24 the district's annual budget approval process.
25 (c) The moneys in the power plant tax assessment reserve fund shall be
26 deposited, invested and accounted for in the manner provided for in
27 subdivisions 2 and 6 of section 3651 and section 3652 of the education
28 law.
29 § 4. This act shall take effect immediately.
