§ 3613 — School district reorganizations and real property tax rates

§ 3613. School district reorganizations and real property tax rates.\n1. When two or more school districts propose to reorganize pursuant to\nsections fifteen hundred eleven through fifteen hundred thirteen,\nfifteen hundred twenty-four, fifteen hundred twenty-six, seventeen\nhundred five, or eighteen hundred one through eighteen hundred three of\nthis chapter, and under the law that would otherwise be applicable, the\nreorganization would have an impact upon the school tax rates within the\nareas served by the school districts that existed prior to the\nreorganization, notwithstanding any other provision of law to the\ncontrary, the boards of education or trustees of all the school\ndistricts participating in the proposed reorganization may opt to have\nthat impact deferred for a one-year period and/or phased-in over a\nperiod as may be determined by the boards of education or trustees of\nall participating school districts in the manner prescribed by this\nsection but which shall not exceed a ten-year period. To exercise such\noption, the boards of education or trustees of all participating school\ndistricts, after conducting a public hearing, may adopt a resolution at\nleast forty-five days prior to the special district meeting at which the\nreorganization vote will be held, to defer and/or phase-in the impact as\nprovided herein. If the board of education or trustees of any\nparticipating school district does not approve such a resolution opting\nfor a common phase-in period, the provisions of this section shall not\napply.\n 2. During the one-year deferral period, the tax rate for each portion\nof the school district shall be calculated in the following manner:\n (a) Determine the assessed value tax rate that applied for the school\nyear immediately preceding the school year in which the reorganization\ntook effect.\n (b) Multiply that assessed value tax rate by the state equalization\nrate applicable to the portion for the school year immediately preceding\nthe school year in which the reorganization took effect.\n (c) Divide the product so determined by the state equalization rate\napplicable to the portion for the first school year of the reorganized\nschool district. The quotient is the assessed value tax rate for the\nportion for that school year. Provided, that if the sum of the real\nproperty tax levies in all of the portions in the school district, using\nthe assessed value tax rates computed pursuant to this subdivision,\nwould yield a real property tax levy that is above or below the total\nreal property tax levy specified in the school district budget for the\ncurrent school year, the assessed value tax rates shall all be decreased\nor increased proportionately so as to yield the specified real property\ntax levy amount.\n 3. During each year of a phase-in period, whose duration up to ten\nyears shall have been determined by the boards of education or trustees\nof the constituent school districts, the tax rate for each portion of\nthe reorganized school district shall be calculated in the following\nmanner:\n (a) Determine the assessed value tax rate that applied for the school\nyear immediately preceding the school year in which the reorganization\ntook effect.\n (b) Multiply that assessed value tax rate by the state equalization\nrate applicable to the portion for the school year immediately preceding\nthe school year in which the reorganization took effect. The result is\nthe base full value tax rate of the portion.\n (c) Determine the assessed value tax rate that would have applied in\nthe portion but for the provisions of this section.\n (d) Multiply that assessed value tax rate by the state equalization\nrate that would have applied for the current school year but for the\nprovisions of this section. The result is the target full value tax rate\nfor the portion.\n (e) Determine the difference between the target full value tax rate\nand the base full value tax rate for the portion.\n (f) Divide the difference so determined by the total number of years\nin the phase-in period applicable to the school district.\n (g) Multiply the quotient so determined by the number of years from\nthe beginning of the phase-in period up to and including the year for\nwhich the tax rate is being determined.\n (h) Add the product so determined to the base full value tax rate.\n (i) Divide the sum so determined by the applicable equalization rate.\nThe quotient is the assessed value tax rate for the portion for the\ncurrent school year. Provided, that if the sum of the real property tax\nlevies in all of the portions in the school district, using the assessed\nvalue tax rates computed pursuant to this subdivision, would yield a\nreal property tax levy that is above or below the total real property\ntax levy specified in the school district budget for the current school\nyear, the assessed value tax rates shall all be decreased or increased\nproportionately so as to yield the specified real property tax levy\namount.\n 4. As used herein the term "portion" means that part of an assessing\nunit located within a school district.\n