A05429 Summary:

BILL NO    A05429 

SAME AS    SAME AS S02772

SPONSOR    Giglio

COSPNSR    

MLTSPNSR   

Amd S3641, Ed L

Provides a $500,000 supplemental valuation impact grant to the West Valley
central school district for the 2015 - 2016 school year.
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A05429 Actions:

BILL NO    A05429 

02/23/2015 referred to real property taxation
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A05429 Votes:

There are no votes for this bill in this legislative session.
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A05429 Memo:

BILL NUMBER:A5429

TITLE OF BILL:  An act to amend the education law, in relation to
providing a supplemental valuation impact grant to the West Valley
central school district

PURPOSE:

To provide a $500,000 supplemental valuation impact grant to the West
Valley central school district.

SUMMARY OF PROVISIONS:

Section 3641, subdivision 3 of the Education Law is amended.

JUSTIFICATION:

Within the boundaries of the West Valley Central School District is
the West Valley Nuclear Demonstration project site. This site is
located on approximately 3,300 acres in the Town of Ashford where West
Valley is situated. Initially, in 1961, the site was created to
commercially reprocess spent nuclear fuel. The operator of the site
was Nuclear Fuel Services, Inc. (NFS). In the late 1970's, NFS
determined that it was no longer feasible to pursue reprocessing.
Since then the site has been in the process of being decommissioned.
The New York State Energy Research and Development Authority (NYSERDA)
is the owner of the facility.

The real property tax school funding system that New York State uses
to fund its public schools system disproportionately hurts West
Valley, since they have little real property to tax, given that most
of their land is state-owned, and as such is tax exempt, primarily as
a result of the West Valley nuclear reprocessing project that folded.
In addition, the School District is a small, rural, relatively poor
area with little tax base to begin with. This situation is further
magnified by an unwillingness of families to locate in the District
due to fears associated with living close to a nuclear facility couple
with one of the highest tax rates in Cattaraugus County.

West Valley School District assessment date for 2012 shows that
$531,901,574 out of the district's estimated $628,380,834 assessed
value is tax exempt. This equates to approximately 85% tax exempt
lands. New York State-owned lands account for 94% of this exemption.
If taxable, this nuclear site would provide over $2.7 million dollars
of tax revenue each school year to the district. In addition, the
school tax rate in the Town of Ashford would decrease from $37.62 per
thousand to $5.45 per thousand.

As a result of the high tax rate, which is 21 percent to 65 percent
higher than contiguous districts, the District's current property
owners pay a disproportionate share of school tax as compared to
property owners in other districts. This makes purchasing a home cost
prohibitive for young families, and is also a factor contributing to
the District's 30.7 percent rate of decline in student enrollment
between the 2005/06 and 2013/14 school years.


Because of West Valley's unique situation, this bill was requested by
the school district to help offset the loss of revenues that they
incur due to their tax exempt lands.

LEGISLATIVE HISTORY:

2013/2014: A6018a (Giglio);
2011,2012: S.859A./A.1955A Referred to Education
2010: S.8189 Referred to Rules

FISCAL IMPLICATIONS:

$500,000, subject to appropriation in the state budget.

EFFECTIVE DATE:

Immediately.
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A05429 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         5429

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                   February 23, 2015
                                      ___________

       Introduced by M. of A. GIGLIO -- read once and referred to the Committee
         on Real Property Taxation

       AN  ACT  to  amend the education law, in relation to providing a supple-
         mental valuation impact  grant  to  the  West  Valley  central  school
         district

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1.  Subdivision 3 of section 3641 of  the  education  law,  as
    2  added by section 29-a of part B of chapter 57 of the laws of 2008, para-
    3  graph  a as amended by section 31 of part A of chapter 57 of the laws of
    4  2009, is amended to read as follows:
    5    3. Supplemental valuation impact grants.  a. In addition to apportion-
    6  ments otherwise provided by section thirty-six hundred two of this arti-
    7  cle, for aid payable in the two thousand [eight]  FIFTEEN--two  thousand
    8  [nine  and  two  thousand nine--two thousand ten] SIXTEEN school [years]
    9  YEAR, the [amounts] AMOUNT specified in [paragraphs] PARAGRAPH c [and d]
   10  of this subdivision shall be paid for the  purpose  of  providing  addi-
   11  tional funding for A school [districts] DISTRICT which [have experienced
   12  a  significant  financial  hardship caused by an extraordinary change in
   13  the taxable property valuation or extraordinary judgments resulting from
   14  tax certiorari proceedings] HAS MORE THAN EIGHTY-THREE  PERCENT  OF  ITS
   15  REAL PROPERTY CLASSIFIED AS TAX EXEMPT.
   16    b.  The purpose of this subdivision is to provide financial assistance
   17  to A school [districts] DISTRICT which [have experienced  a  significant
   18  reduction  in  the taxable full value of the school district or extraor-
   19  dinary tax certiorari judgments] HAS MORE THAN EIGHTY-THREE  PERCENT  OF
   20  ITS  REAL PROPERTY CLASSIFIED AS TAX EXEMPT.  The legislature finds that
   21  A school [districts for which a judgment was made resulting from  a  tax
   22  certiorari  proceeding  which  is  larger  than  the total budget of the
   23  school district for school year two thousand seven--two  thousand  eight
   24  or  for  school  districts] DISTRICT which [have observed a reduction of

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06044-01-5
       A. 5429                             2

    1  taxable real property of more than seventy-five percent  between  school
    2  year  two  thousand  five--two thousand six and school year two thousand
    3  eight--two thousand nine] HAS MORE THAN EIGHTY-THREE PERCENT OF ITS REAL
    4  PROPERTY  CLASSIFIED  AS  TAX  EXEMPT  DURING  SCHOOL  YEAR TWO THOUSAND
    5  FIFTEEN--TWO THOUSAND SIXTEEN  may  benefit  from  temporary  additional
    6  assistance.
    7    c.  To  the  [Barker  central school district, there shall be paid one
    8  million three hundred thousand dollars ($1,300,000). Such grant shall be
    9  payable to the Barker central school district  in  accordance  with  the
   10  payment schedules contained in section thirty-six hundred nine-a of this
   11  article, notwithstanding any provision of law to the contrary.
   12    d.  To the Haverstraw-Stony Point central school district, there shall
   13  be paid two million five hundred  thousand  dollars  ($2,500,000).  Such
   14  grant  shall  be  payable  to  the Haverstraw-Stony Point central school
   15  district in accordance with the payment schedules contained  in  section
   16  thirty-six hundred nine-a of this article, notwithstanding any provision
   17  of law to the contrary] WEST VALLEY CENTRAL SCHOOL DISTRICT, THERE SHALL
   18  BE  PAID  FIVE  HUNDRED THOUSAND DOLLARS ($500,000). SUCH GRANT SHALL BE
   19  PAYABLE TO THE WEST VALLEY CENTRAL SCHOOL DISTRICT  IN  ACCORDANCE  WITH
   20  THE  PAYMENT SCHEDULES CONTAINED IN SECTION THIRTY-SIX HUNDRED NINE-A OF
   21  THIS ARTICLE, NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY.
   22    S 2. This act shall take effect immediately.
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