N.Y. Education Law § 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.