“This legislation will allow the school district to determine what method of tax collection is most effective and efficient for the parties involved, most especially our property taxpayers,” Jaffee said.
The bill was carried by State Sen. David Carlucci in the Senate and states that it will 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 February first of each year that the district collects its own taxes.”
There are multiple methods for collecting school property taxes under the current law. However, two of the methods most commonly used are either the town collecting taxes on behalf of the school district or the school district collecting taxes on its own.
Section 37 of the current Town Law states that it will 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.” In other words, a school district may not collect its own taxes unless the town has formally agreed that the school district may do so.
Additionally, Section 37 of the Town Law also states that if a town is collecting taxes for the school district, 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 thirty dates from the date on the school tax bill.
The bill, which received the support of the New York State School Boards Association, awaits the Governor’s signature and would be effective immediately.
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