06/08/2016 WED 14i39 PAX Ransnhoft

LEGISLATIVE MEMORANDUM
m

SUPPORT
Now York Slnln AssociaUou oi"School l5!isiiios.s OITunuis

S.4737 Cariucci/A.6823 Jaffee

The New York State Association of School Business Officials supports this legislation and strongly
urges the Legislature to pass this bill.

Summary of Provisions

This bill would amend the town law to allow school districts to collect their own taxes without having
to seek permission from another local government.

Support Justification

Currently,school districts that want to collect their own taxes must seek permission from their local
municipality. Some municipalities charge a fee for collecting their taxes and may be reluctant to give up
on this revenue stream.

The fee (up to 1%)Is added to the property tax bill and can sow confusion among district taxpayers
when the tax bill comes in higher than what was estimated when the budget was presented to the
voters.

No other taxing Jurisdiction is required to seek permission from their municrpality to collect their own
taxes and the singling out of school districts for this requirement seems unfair and unreasonable.

453 New Kaxner Road, Albany, NY 122051 www.nyaasbo.org|518-434-22S1

 3 New York State School Boards Association

Memorandum of SUPPORT

S.4737 (Cariucci)/ A.6823 (Jaffee)

An act to amend the town law, in relation to the powers and duties the
receiver of taxes and assessments

The New York State School Boards Association supports the above referenced legisladon and urges
its immediate enactment.

Under current law, there are multiple ways school property taxes can be collected. The two most
common methods are a town collecting on behalf of the school district and a school district
collecting on its own. Section 37 of the Town Law states that it shall be the duty of the town
receiver of taxes to collect school taxes unless "there has been an agreement between the town
board and the school board to the contrary." Meaning, a school district cannot collect its own taxes
unless the town has formally agreed to them doing so.

In addition, if a town is collecting taxes for the school district. Section 37 of the Town Law also
states that the town, by resolution, may authorize the receiver of taxes to charge the taxpayer a
collection fee of up to one percent of the taxes to be collected during the first thirt}- dates from the
date on the school tax bill. The town, again by resolution, may also authorize the receiver of taxes to
charge the taxpayer a fee of up to five percent of the taxes to be collected after the first thirty days
have elapsed. This means property* taxpayers may be, and often are, charged an additional fee on top
of their school tax bill if the town decides to collect property taxes for the school district.

The bill proposes that it shall be the duty of the town receiver of taxes to collect school taxes on
behalf of the school district unless "the school board advises the town's receiver of taxes in writing
by certified mail, return receipt requested, by no later than Februar)' first of each year that it collects
its own taxes." This would effectively allow a school district to unilaterally decide to collect its own
taxes. The school district would no longer need the town to agree to such decision. This would
allow a school district and town to work together to determine what the most efficient and effective
tax collection method may be for all parties, especially the taxpayers.

Therefore, NYSSBA supports the above referenced legislation and urges your approval. For
additional information, please contact NYSSBA governmental relations at 518-783-0200.

24 Century Hill Drive, Suite 200 Latham, NY 12110|518,783.0200 800.342.3360|www.nyssba.org