N.Y. Real Property Tax Law § 1903-a: Optional homestead and non-homestead tax rates in eligible split tax districts

§ 1903-a. Optional homestead and non-homestead tax rates in eligible

split tax districts. 1. Notice of intent. (a) The governing body of an

eligible split tax district which intends to establish homestead and

non-homestead tax rates shall file a notice of intent to establish

homestead and non-homestead tax rates with each assessor who prepares an

assessment roll used in whole or in part for the levy of taxes by such

tax district. The notice shall be filed with each assessor on or before

the taxable status date of the first assessment roll to which homestead

and non-homestead tax rates may apply. A copy of the notice of intent

shall also be filed with the county director of real property tax

services.

(b) The governing body of a school district or village which expects

one or more cities or towns within the school district or village to

adopt local laws pursuant to section nineteen hundred three of this

article and thereby render the school district or village an eligible

split tax district and which intends to establish homestead and

non-homestead tax rates is authorized to and shall file the notice of

intent required by paragraph (a) of this subdivision.

(c) The governing body of an eligible split tax district which has

filed a notice of intent pursuant to this subdivision and which does not

intend to establish homestead and non-homestead tax rates may cancel

such notice of intent, provided that such cancellation shall not

prohibit a subsequent filing of the notice of intent. A copy of such

cancellation shall be filed with the appropriate assessors and county

director of real property tax services.

2. Classification of assessment rolls; assessor certification. Upon

receiving notice pursuant to subdivision one of this section, each

assessor who prepares an assessment roll used in whole or in part for

the levy of the taxes by such eligible split tax district shall classify

in either the homestead or non-homestead class each property listed on

such roll or on the part thereof applicable to such tax district. Such

classification of individual properties shall be subject to

administrative and judicial review pursuant to title one-A of article

five and title one of article seven of this chapter. Upon completion and

filing of a final assessment roll classified pursuant to this

subdivision, the assessor shall certify to the authorities of the tax

district the total assessed value and total taxable assessed value of

the real property subject to taxation for purposes of the tax district

in the homestead and non-homestead class, respectively, as determined

from such assessment roll or part thereof applicable to the tax

district. The classification and certification requirements of this

subdivision shall apply until the governing body of an eligible split

tax district either cancels the notice of intent to establish homestead

and non-homestead tax rates pursuant to subdivision one of this section

or rescinds a resolution adopting the provisions of this section

pursuant to subdivision five of this section.

3. Adoption. The governing body of an eligible split tax district

which has filed a notice of intent pursuant to subdivision one of this

section may adopt the provisions of this section by resolution,

following a public hearing, at any time prior to the levy of the

district's taxes. Prior notice of such hearing shall be published at

least once in a newspaper having general circulation in the tax district

and shall be provided to the governing body of each city and town

located wholly or partially within the tax district. Adoption of such

resolution shall require use of homestead and non-homestead tax rates

calculated pursuant to subdivision four of this section for all

subsequent tax levies until such resolution is rescinded as provided in

subdivision five of this section. A copy of such resolution shall be

filed with the body, officer or employee that computes the tax rates and

the county director of real property tax services.

4. Calculation of tax rates. (a) Equalization by class. The tax

authorities shall determine for the homestead and non-homestead classes,

respectively, the total full valuation and total taxable full valuation

of the real property subject to taxation for district purposes in each

city or town or part thereof included within the tax district. The total

full valuation of a class in a city or town or part thereof shall be

computed by dividing the total assessed value of the property in the

class by the state equalization rate or special equalization rate

prescribed in section thirteen hundred fourteen of this chapter. The

total taxable full valuation of a class in a city or town or part

thereof shall be computed by dividing the total taxable assessed value

of the property in the class by the state equalization rate or special

equalization rate prescribed in section thirteen hundred fourteen of

this chapter.

(b) Aggregate tax district homestead and non-homestead proportions.

The governing body of the tax district shall establish by annual

resolution an aggregate tax district homestead proportion and an

aggregate tax district non-homestead proportion. The aggregate tax

district homestead proportion shall be computed by dividing the

aggregate taxable full valuation of the real property in the homestead

class in the tax district as a whole by the aggregate taxable full

valuation of the real property in both the homestead and non-homestead

classes in the tax district as a whole. The aggregate tax district

non-homestead proportion shall be computed by subtracting the aggregate

tax district homestead proportion from the whole number one.

(c) Aggregate homestead and non-homestead tax shares. The governing

body of the tax district shall determine by annual resolution the

percentage of the tax levy to be allocated to each class in the tax

district as a whole by establishing an aggregate homestead tax share and

an aggregate non-homestead tax share. The aggregate homestead tax share

shall be no less than seventy-five percent and no more than one hundred

percent of the aggregate tax district homestead proportion, subject to

the following constraints:

(i) the aggregate non-homestead tax share shall not exceed one hundred

twenty-five percent of the aggregate tax district non-homestead

proportion;

(ii) where more than fifty-seven and one-half percent of the aggregate

taxable full valuation of the real property in the non-homestead class

in the eligible split tax district which is a school district as a whole

is attributable to non-homestead real property located in one or more

city or town approved assessing units which have in effect a local law

adopted pursuant to section nineteen hundred three of this article, the

aggregate non-homestead tax share shall not exceed the non-homestead

base proportion, adjusted non-homestead base proportion or locally

adjusted non-homestead proportion certified pursuant to subdivision

seven of such section nineteen hundred three or where the eligible split

tax district which is a school district is located in more than one such

city or town, an average of such proportions weighted by the total

taxable full valuation of the non-homestead class in each such city or

town or part thereof within the eligible split tax district which is a

school district; and

(iii) the sum of the aggregate homestead and non-homestead tax shares

shall equal one hundred percent.

The governing body of the tax district shall certify the aggregate

homestead and non-homestead tax shares to the body, officer or employee

that computes the tax district's tax rates.

(d) Apportionment by class. The body, officer or employee that

computes the tax district's tax rates shall allocate to the homestead

and non-homestead classes in the tax district as a whole, respectively,

a share of the amount to be raised equal to the applicable aggregate

homestead or non-homestead tax share. The amount to be raised from each

such class in the tax district as a whole shall then be apportioned

separately among the cities or towns or parts thereof in which the tax

district is located in proportion to the percentage that the total full

valuation of the class in each such city or town or part thereof bears

to the aggregate total full valuation of the class in the tax district

as a whole. The amount so apportioned to each class in each city or town

shall be the amount to be raised from that class in that city or town.

(e) Class tax rates. The body, officer or employee that computes the

tax district's tax rates shall compute a tax rate for the homestead

class and a separate tax rate for the non-homestead class for each city

or town or part thereof in which the tax district is located. The tax

rate for a class in a city or town or part thereof shall be computed by

dividing the amount to be raised from the class in that city or town by

the total taxable assessed value of the real property in the class in

that city or town or part thereof as entered on the final assessment

roll used for the levy of the tax district's taxes.

(f) Correction and review. The equalization and apportionment required

by this subdivision shall be subject to correction and review to the

extent practicable as provided in section thirteen hundred fourteen of

this chapter.

5. Rescission. The governing body of the tax district may rescind a

resolution adopting the provisions of this section, without a public

hearing, at any time prior to the levy of taxes for the fiscal year to

which such resolution is applicable. A copy of such resolution shall be

filed with the body, officer or employee that computes the tax

district's tax rates, each assessor who prepares an assessment roll used

in whole or in part for the levy of the tax district's taxes and the

county director of real property tax services.

6. Expiration. A notice of intent shall expire if the governing body

fails to adopt the provisions of this section within one year after

filing the notice of intent. Upon the expiration of a notice of intent,

the classification requirements of this section shall cease to be

applicable, but may be reinstated by the filing of a new notice of

intent.