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Fm: Robert Biggerstaff, Esq. Question: Does imposition of a utility tax in a small
city school district require voter approval? Discussion: A utility tax of ½, 1, 1 ½, 2, 2 ½, or 3% may be imposed by small city school districts pursuant to Tax Law§1212 upon “the majority vote of the whole number of its school authorities.” There is also a requirement under §1212(c) that a public hearing be scheduled and that the hearing notice conform to the provisions for the budget hearing. There does not appear, however, that any vote of approval be held at the hearing and there is no definition of the phrase ‘school authorities.’ Presumably school authorities means the school board, here. The utility tax is a tax on services defined under Tax Law§1105(b) except for prepaid telephone services, and under §1110(a)(E+H) and the transitional provisions of §1106(b). Regulations of the Commissioner of Taxation and Finance are provided at 20NYCRR§530.3 and further research resources can be found at 101 NYJur2d Tax and Assessments §§ 1846, 1854, 1861, 1863-1867 and 1869. Tax Law§1212 was enacted prior to 1996 when voter approval of budgets for small city school districts was first required. It appears that no changes to §1212 were enacted in 1996 when small city districts changed from board approved budgets to voter approved budgets. It therefore can be concluded that no change was intended under the provisions of §1212(c) with respect to the utility tax hearing and that voter approval is not required. Further, no case law, regulations, Comptroller’s Opinions or Commissioner of Education Opinions hold to the contrary. |
•Albany
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