2019 New York Laws
EDN - Education
Title 5 - Taxation and Financial Administration
Article 73 - Apportionment of Public Moneys
Part 1 - General Provisions
3613 - School District Reorganizations and Real Property Tax Rates.

§  3613.  School district reorganizations and real property tax rates.
1.  When two or more school districts propose to reorganize pursuant  to
sections  fifteen  hundred  eleven  through  fifteen  hundred  thirteen,
fifteen  hundred  twenty-four,  fifteen  hundred  twenty-six,  seventeen
hundred  five, or eighteen hundred one through eighteen hundred three of
this chapter, and under the law that would otherwise be applicable,  the
reorganization would have an impact upon the school tax rates within the
areas  served  by  the  school  districts  that  existed  prior  to  the
reorganization, notwithstanding  any  other  provision  of  law  to  the
contrary,  the  boards  of  education  or  trustees  of  all  the school
districts participating in the proposed reorganization may opt  to  have
that  impact  deferred  for  a  one-year  period and/or phased-in over a
period as may be determined by the boards of education  or  trustees  of
all  participating  school  districts  in  the manner prescribed by this
section but which shall not exceed a ten-year period. To  exercise  such
option,  the boards of education or trustees of all participating school
districts, after conducting a public hearing, may adopt a resolution  at
least forty-five days prior to the special district meeting at which the
reorganization vote will be held, to defer and/or phase-in the impact as
provided   herein.  If  the  board  of  education  or  trustees  of  any
participating school district does not approve such a resolution  opting
for  a  common phase-in period, the provisions of this section shall not
apply.
  2. During the one-year deferral period, the tax rate for each  portion
of the school district shall be calculated in the following manner:
  (a)  Determine the assessed value tax rate that applied for the school
year immediately preceding the school year in which  the  reorganization
took effect.
  (b)  Multiply  that  assessed value tax rate by the state equalization
rate applicable to the portion for the school year immediately preceding
the school year in which the reorganization took effect.
  (c) Divide the product so determined by the  state  equalization  rate
applicable  to  the portion for the first school year of the reorganized
school district. The quotient is the assessed value  tax  rate  for  the
portion  for  that  school  year.  Provided, that if the sum of the real
property tax levies in all of the portions in the school district, using
the assessed value tax rates  computed  pursuant  to  this  subdivision,
would  yield  a  real property tax levy that is above or below the total
real property tax levy specified in the school district budget  for  the
current school year, the assessed value tax rates shall all be decreased
or  increased proportionately so as to yield the specified real property
tax levy amount.
  3. During each year of a phase-in period, whose  duration  up  to  ten
years  shall have been determined by the boards of education or trustees
of the constituent school districts, the tax rate for  each  portion  of
the  reorganized  school  district  shall be calculated in the following
manner:
  (a) Determine the assessed value tax rate that applied for the  school
year  immediately  preceding the school year in which the reorganization
took effect.
  (b) Multiply that assessed value tax rate by  the  state  equalization
rate applicable to the portion for the school year immediately preceding
the  school  year in which the reorganization took effect. The result is
the base full value tax rate of the portion.
  (c) Determine the assessed value tax rate that would have  applied  in
the portion but for the provisions of this section.
  (d)  Multiply  that  assessed value tax rate by the state equalization
rate that would have applied for the current school  year  but  for  the

provisions of this section. The result is the target full value tax rate
for the portion.
  (e)  Determine  the  difference between the target full value tax rate
and the base full value tax rate for the portion.
  (f) Divide the difference so determined by the total number  of  years
in the phase-in period applicable to the school district.
  (g)  Multiply  the  quotient so determined by the number of years from
the beginning of the phase-in period up to and including  the  year  for
which the tax rate is being determined.
  (h) Add the product so determined to the base full value tax rate.
  (i)  Divide the sum so determined by the applicable equalization rate.
The quotient is the assessed value tax rate  for  the  portion  for  the
current  school year. Provided, that if the sum of the real property tax
levies in all of the portions in the school district, using the assessed
value tax rates computed pursuant to this  subdivision,  would  yield  a
real  property  tax  levy that is above or below the total real property
tax levy specified in the school district budget for the current  school
year,  the  assessed value tax rates shall all be decreased or increased
proportionately so as to yield the  specified  real  property  tax  levy
amount.
  4.  As  used herein the term "portion" means that part of an assessing
unit located within a school district.