senate Bill S1488

Relates to reductions of payments in lieu of taxes

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 22 / May / 2013
    • 1ST REPORT CAL.752
  • 23 / May / 2013
    • 2ND REPORT CAL.
  • 29 / May / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • COMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT

Summary

Relates to reductions of payments in lieu of taxes; provides that where such payment agreement is to be reduced due to a reassessment of the parcel of real property such agreement is related to, such reduction shall be phased in over 10 years if the reduction would negatively affect the revenues of a local government by more than 5%.

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Bill Details

See Assembly Version of this Bill:
A1866
Versions:
S1488
Legislative Cycle:
2013-2014
Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Add Art 3-A ยง370, RPT L
Versions Introduced in 2011-2012 Legislative Cycle:
S5872, A9577

Votes

8
0
8
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Local Government committee vote details

Sponsor Memo

BILL NUMBER:S1488

TITLE OF BILL:
An act
to amend the real property tax law, in relation to payment in lieu of
taxes agreements

PURPOSE: This bill requires businesses that make
payments in lieu of
taxes (PILOTs) to local governments and school districts to spread
the negative impact of a reassessment over a ten year period.

SUMMARY OF PROVISIONS: The real property tax law is
amended by adding
a new article 3-A to require businesses that make payments in lieu of
taxes (PILOTs) to provide local governments and school districts to
spread the negative impact of a reassessment over a ten year period.
Ten year phase out period would only come into affect if the negative
financial impact

JUSTIFICATION: Many businesses have been enticed to
areas through a
development program known as a PILOT, payment in lieu of taxes. The
program exempts certain businesses from property taxes in exchange
for payments to the county, towns and school districts where they are
located. Some PILOT agreements have provisions that allow the
business to challenge property tax assessments and win a credit
against future payments if found to be a valid challenge.

A successful challenge would create a substantial and potentially
crushing reduction in revenue to a locality and school district that
relies on PILOT payments. The potential impact to a school district
or locality could be devastating. Localities and school districts, in
these most difficult financial times, should be allowed to spread the
impact over a ten year period if the reduction would constitute 5% or
more of total revenue. Such a phase out would allow for planning and
budgeting decisions to be made that would reflect the reduction in
PILOT payments and lessen the impact on the taxpayer.

LEGISLATIVE HISTORY: S.5872 of 2011/12.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  1488

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Local Government

AN ACT to amend the real property tax law, in  relation  to  payment  in
  lieu of taxes agreements

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

  Section 1. The real property tax law is amended by adding a new  arti-
cle 3-A to read as follows:
                               ARTICLE 3-A
                   PAYMENT IN LIEU OF TAXES AGREEMENTS
SECTION 370. PAYMENT IN LIEU OF TAXES AGREEMENTS.
  S  370.  PAYMENT  IN  LIEU OF TAXES AGREEMENTS. 1. FOR THE PURPOSES OF
THIS SECTION:
  (A) "LOCAL GOVERNMENT" SHALL MEAN ANY MUNICIPAL CORPORATION AS DEFINED
PURSUANT TO SECTION TWO OF THE  GENERAL  MUNICIPAL  LAW  OR  ANY  SCHOOL
DISTRICT OR BOARD OF COOPERATIVE EDUCATIONAL SERVICES.
  (B)  "PAYMENT  IN  LIEU OF TAXES AGREEMENT" OR "PILOT AGREEMENT" SHALL
MEAN AN AGREEMENT ENTERED INTO BETWEEN A LOCAL  GOVERNMENT  AND  ANOTHER
PARTY  WHEREBY  SUCH  OTHER  PARTY COMPENSATES SUCH LOCAL GOVERNMENT FOR
SOME OR ALL OF THE TAX REVENUE LOST DUE TO THE  NATURE  OF  THE  USE  OR
OWNERSHIP  OF  A PARCEL OF REAL PROPERTY BY SUCH OTHER PARTY. THE AMOUNT
OF SUCH PAYMENT IN LIEU OF TAXES IS  BASED  ON  AN  ASSESSMENT  OF  SUCH
PARCEL OF REAL PROPERTY.
  2.  IF THE AMOUNT OF ANY PAYMENT IN LIEU OF TAXES IS REDUCED, DUE TO A
REASSESSMENT OF THE PARCEL OF REAL PROPERTY SUCH  AGREEMENT  IS  RELATED
TO,  AND SUCH REDUCTION WOULD NEGATIVELY IMPACT THE TOTAL REVENUE OF ANY
LOCAL GOVERNMENT BY MORE THAN FIVE PERCENT, SUCH REDUCTION  IN  PAYMENTS
IN LIEU OF TAXES SHALL BE PHASED IN OVER A TEN YEAR PERIOD.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03300-01-3

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