NY Educ L § 2023-A (2021)
2021 New York Laws EDN - Education Title 2 - School District Organization Article 41 - District Meetings Part 1 - General Provisions 2023-A - Limitations Upon School District Tax Levies.

§  2023-a.  Limitations upon school district tax levies. 1. Generally. Unless otherwise provided by law, the amount of taxes that may be levied by or on behalf of  any  school  district,  other  than  a  city  school district  of a city with one hundred twenty-five thousand inhabitants or more, shall not exceed the tax levy limit established pursuant  to  this section,   not   including   any  tax  levy  necessary  to  support  the expenditures pursuant to subparagraphs (i) through (iv) of  paragraph  i of subdivision two of this section.   2. Definitions. As used in this section:   a.  "Allowable levy growth factor" shall be the lesser of: (i) one and two one-hundredths; or (ii) the sum of one plus  the  inflation  factor; provided,  however, that in no case shall the levy growth factor be less than one.   b. "Available carryover" means the amount by which the  tax  levy  for the  prior  school year was below the applicable tax levy limit for such school year, if any, but no more than an  amount  that  equals  one  and one-half percent of the tax levy limit for such school year.   c.  "Capital  local  expenditures"  means  the  taxes  associated with budgeted  expenditures  resulting  from  the   financing,   refinancing, acquisition,   design,   construction,  reconstruction,  rehabilitation, improvement, furnishing and equipping of,  or  otherwise  providing  for school district capital facilities or school district capital equipment, including  debt  service  and  lease  expenditures,  and  transportation capital debt service, subject to the approval of  the  qualified  voters where  required by law.  The commissioner of taxation and finance shall, as appropriate, promulgate rules and regulations which may  provide  for adjustment  of capital local expenditures to reflect a school district's share of additional budgeted capital expenditures made  by  a  board  of cooperative educational services.   d.  "Capital tax levy" means the tax levy necessary to support capital local expenditures, if any.   e. "Coming school year" means the  school  year  for  which  tax  levy limits are being determined pursuant to this section.   f.  "Inflation  factor"  means the quotient of: (i) the average of the national  consumer  price  indexes  determined  by  the  United   States department  of labor for the twelve-month period preceding January first of the current year minus the average of  the  national  consumer  price indexes  determined  by  the  United  States department of labor for the twelve-month period preceding January first of the prior  year,  divided by:  (ii)  the average of the national consumer price indexes determined by the United States department of labor  for  the  twelve-month  period preceding  January first of the prior year, with the result expressed as a decimal to four places.   g. "Prior school year" means the school year immediately preceding the coming school year.   h. "School district" means a common school district, union free school district, central school district, central high  school  district  or  a city  school  district  in a city with less than one hundred twenty-five thousand inhabitants.   i. "Tax levy limit" means the amount of taxes  a  school  district  is authorized to levy pursuant to this section, provided, however, that the tax levy limit shall not include the following:  (i)  a tax levy necessary for expenditures resulting from court orders or judgments against the school district arising out of tort actions for any amount that exceeds five percent of the  total  tax  levied  in  the prior school year;  (ii)  in years in which the system average actuarial contribution rate of the New York state and local employees' retirement system, as defined  by  paragraph  ten  of  subdivision  a  of  section  nineteen-a  of  the retirement   and  social  security  law,  increases  by  more  than  two percentage points from the previous  year,  a  tax  levy  necessary  for expenditures  for  the  coming  fiscal year for school district employer contributions to the New York  state  and  local  employees'  retirement system  caused  by  growth  in the system average actuarial contribution rate minus two percentage points;  (iii) in years in which the normal contribution rate of the  New  York state  teachers'  retirement  system,  as  defined  by  paragraph  a  of subdivision two of section  five  hundred  seventeen  of  this  chapter, increases  by  more than two percentage points from the previous year, a tax levy necessary for expenditures  for  the  coming  fiscal  year  for school  district  employer contributions to the New York state teachers' retirement system caused by growth in the normal contribution rate minus two percentage points; and  (iv) a capital tax levy.   2-a. Tax base growth factor. a. No later than  February  fifteenth  of each year, the commissioner of taxation and finance shall identify those school  districts  for  which tax base growth factors must be determined for the coming school year, and shall notify the commissioner of the tax base growth factors so determined, if any.   b. The commissioner of taxation and finance shall calculate a quantity change factor for the coming school year for each school district  based upon  the  physical  or  quantity  change,  as defined by section twelve hundred  twenty  of  the  real  property  tax  law,  reported   to   the commissioner  of  taxation  and  finance  by  the  assessor or assessors pursuant to section five hundred seventy-five of the real  property  tax law.  The  quantity change factor shall show the percentage by which the full value of the taxable real  property  in  the  school  district  has changed  due  to  physical  or  quantity change between the second final assessment roll or rolls preceding the final assessment  roll  or  rolls upon  which  taxes  are  to  be levied, and the final assessment roll or rolls immediately preceding the final  assessment  roll  or  rolls  upon which  taxes  are to be levied. The commissioner of taxation and finance shall, as appropriate, promulgate rules and  regulations  regarding  the calculation   of  the  quantity  change  factor  which  may  adjust  the calculation based on the development on tax exempt land.   c. After determining the quantity change factor for a school district, the commissioner of taxation and finance shall proceed as follows:  (i) If the quantity change factor is  negative,  the  commissioner  of taxation  and  finance  shall not determine a tax base growth factor for the school district.  (ii) If the quantity change factor is positive,  the  commissioner  of taxation  and  finance  shall determine a tax base growth factor for the school district which is equal to one plus the quantity change factor.   3. Computation of tax levy  limits.  a.  Each  school  district  shall calculate  the  tax  levy  limit  for  each  school  year which shall be determined as follows:  (1) Ascertain the total amount of taxes levied for  the  prior  school year.  (2) Multiply the result by the tax base growth factor, if any.  (3)  Add  any  payments  in  lieu of taxes that were receivable in the prior school year.  (4) Subtract the  tax  levy  necessary  to  support  the  expenditures pursuant to subparagraphs (i) and (iv) of paragraph i of subdivision two of this section for the prior school year, if any.  (5) Multiply the result by the allowable levy growth factor.  (6)  Subtract  any  payments in lieu of taxes receivable in the coming fiscal year.  (7) Add the available carryover, if any.   b.  On or before March first of each year, any school district subject to the provisions of this section shall submit to the state comptroller, the commissioner, and the commissioner of taxation  and  finance,  in  a form  and  manner  prescribed  by the state comptroller, any information necessary for the calculation of the tax  levy  limit;  and  the  school district's  determination of the tax levy limit pursuant to this section shall be subject to review by the commissioner and the  commissioner  of taxation and finance.   4.  Reorganized  school  districts.  When two or more school districts reorganize, the commissioner shall determine the tax levy limit for  the reorganized  school  district  for  the  first school year following the reorganization based on the respective tax levy  limits  of  the  school districts that formed the reorganized district from the last school year in  which  they  were  separate districts, provided that in the event of formation of a new central high school district, the tax levy limits for the new central high school district and its component school  districts shall  be  determined in accordance with a methodology prescribed by the commissioner.   5. Erroneous levies. In the event a school district's actual tax  levy for   a  given  school  year  exceeds  the  maximum  allowable  levy  as established pursuant to  this  section  due  to  clerical  or  technical errors, the school district shall place the excess amount of the levy in reserve  in  accordance  with such requirements as the state comptroller may prescribe, and shall use such funds and any interest earned  thereon to offset the tax levy for the ensuing school year.   6.  (a) Notwithstanding any other provision of law to the contrary, in the event the trustee, trustees  or  board  of  education  of  a  school district  that  is  subject to the provisions of this section proposes a budget that will require a tax levy that exceeds the tax levy limit  for the  corresponding  school  year,  not  including  any levy necessary to support the expenditures pursuant to subparagraphs (i) through  (iv)  of paragraph  i  of subdivision two of this section, then such budget shall be approved if sixty percent of  the  votes  cast  thereon  are  in  the affirmative.  (b)  Where  the  trustee,  trustees  or  board of education proposes a budget subject to the requirements of paragraph (a) of this subdivision, the ballot for such budget shall  include  the  following  statement  in substantially  the  same  form:  "Adoption of this budget requires a tax levy increase of          which exceeds the statutory tax levy  increase limit  of          for this school fiscal year and therefore exceeds the state tax cap and must be approved by sixty  percent  of  the  qualified voters present and voting."   7.  In  the event that the original proposed budget is not approved by the voters, the sole trustee, trustees or board of education may adopt a final budget pursuant to subdivision eight of this section  or  resubmit to  the  voters  the  original or a revised budget at a special district meeting in accordance with subdivision three  of  section  two  thousand seven of this part. Upon one defeat of such resubmitted budget, the sole trustee,  trustees  or  board  of  education  shall adopt a final budget pursuant to subdivision eight of this section.   8. Notwithstanding any other provision of law to the contrary, if  the qualified  voters  fail  to  approve the proposed school district budget upon resubmission or upon a determination not to resubmit for  a  second vote  pursuant  to  subdivision seven of this section, the sole trustee,  trustees or board of education shall levy a tax no greater than the  tax that was levied for the prior school year.   9.  Nothing  in  this section shall preclude the trustee, trustees, or board of education of a  school  district,  in  their  discretion,  from submitting  additional  items of expenditures to the voters for approval as separate propositions or  the  voters  from  submitting  propositions pursuant  to sections two thousand eight and two thousand thirty-five of this part; provided  however,  except  in  the  case  of  a  proposition submitted for any expenditure contained within subparagraphs (i) through (iv)  of  paragraph  i  of  subdivision  two  of  this  section,  if any proposition, or propositions collectively that are subject to a vote  on the  same date, would require an expenditure of money that would require a tax levy and would result in the tax levy limit being exceeded for the corresponding school year then such proposition  shall  be  approved  if sixty percent of the votes cast thereon are in the affirmative.