NY State Senate Bill 2025-S3245A

Current Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 23, 2026	print number 3245a
Mar 23, 2026	amend and recommit to local government
Jan 07, 2026	referred to local government
Jan 24, 2025	referred to local government

Bill Amendments

Original

A (Active)

co-Sponsors

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2025-S3245 - Details

See Assembly Version of this Bill:: A10860
Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §3-c, Gen Muni L; amd §2023-a, Ed L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8480, A7091
2023-2024: S1045, S8204, A1567

2025-S3245 - Summary

Relates to payments in lieu of taxes; provides that the tax base growth factor or quantity change factor includes the change in assessed value for each property on the exempt side of the tax rolls under a payment in lieu of tax agreement; allows a local government or school district to elect to include the equivalent taxable value of property subject to a payment in lieu of taxes agreement in the calculation of its quantity change factor.

2025-S3245 - Sponsor Memo

                                 
BILL NUMBER: S3245

SPONSOR: COONEY
 
TITLE OF BILL:

An act to amend the general municipal law and the education law, in
relation to payments in lieu of taxes

 
PURPOSE:

This bill amends the general municipal law and education law to provide
that the tax base growth factor (or quantity change factor) include the
value of new assessment exempted under a Payment In Lieu of Taxes agree-
ment being added to a community.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends section 3-c of the general municipal law to include the
change in assessed value for each property on the exempt side of the tax
rolls under PILOT agreements when the commissioner of taxation and
finance calculates the quantity change factor for each local government.

Section 2 amends section 2023-a of the education law to provide that the
change in assessed value for each property on the exempt side of the tax
rolls under PILOT agreements is included when the commissioner of taxa-
tion and finance calculates the quantity change factor for each local
government.

Section 3 provides an effective date one hundred twenty days after
enactment.

 
JUSTIFICATION:

The current tax cap law ignores increases to the tax base of a community
if that increase in tax base occurs under a PILOT agreement. The mechan-
ics of the law takes into account the payment of PILOTs in a comprehen-
sive manner, whereby each dollar of the "new" PILOT payments made
reduces the amount of tax an entity can levy by a dollar. In other
words, the law sets the Property Tax and PILOT payments cap by fixing a
maximum levy amount after netting out the effects of any PILOT payments
received.

The issue is that the real property improvements made under a PILOT are
not counted under the law. The intent of Tax Base Growth Factor is to
ensure that as a community grows, so too should its revenues to recog-
nize that the community is providing services to more residences and
businesses. By not recognizing PILOT-exempted projects, the law does not
properly capture this contradiction and a community is restricted in
providing resources in proportion to service demand increases. This
issue can be resolved by amending the law to have the quantity change
factor include the value of new assessment exempted under a PILOT agree-
ment being added to a community. This measure is not a tax increase,
instead it recognizes growth to be factored into the 2% cap which
provides school districts and municipalities more flexibility to stay
under the cap.

 
LEGISLATIVE HISTORY:

A.8038 2013- Referred to local governments
A3611 2015/16 - Referred to local governments

A.1481A 2017 - Veto message 208

S.8480 2022 - Referred to local governments

S.1045 2023- vetoed memo 110

S. 8204 2023/24

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect on the hundred twentieth day after it shall
have become law.

2025-S3245 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3245
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2025
                                ___________
 
 Introduced  by  Sens. COONEY, MARTINS, MAY, O'MARA, RHOADS, WEBB -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Local Government
 
 AN  ACT  to  amend  the  general municipal law and the education law, in
   relation to payments in lieu of taxes

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraph  (i)  of  paragraph  (b) of subdivision 3 of
 section 3-c of the general municipal law, as amended  by  section  2  of
 subpart  C  of  part  C of chapter 20 of the laws of 2015, is amended to
 read as follows:
   (i) The commissioner of taxation and finance shall calculate a quanti-
 ty change factor for each local government for the  coming  fiscal  year
 based upon the physical or quantity change, as defined by section twelve
 hundred twenty of the real property tax law, reported to the commission-
 er  of  taxation  and  finance  by the assessor or assessors pursuant to
 section five hundred seventy-five of the  real  property  tax  law.  The
 quantity change factor shall show the percentage by which the full value
 of  the taxable real property in the local government has changed due to
 physical or quantity change between the second final assessment roll  or
 rolls  preceding the final assessment roll or rolls upon which taxes are
 to be levied, and the final assessment roll or rolls immediately preced-
 ing the final assessment roll or  rolls  upon  which  taxes  are  to  be
 levied[. The commissioner of taxation and finance shall, as appropriate,
 promulgate  rules and regulations regarding the calculation of the quan-
 tity change factor which may adjust the calculation based on the  devel-
 opment  on  tax  exempt  land], AND SHALL INCLUDE THE CHANGE IN ASSESSED
 VALUE FOR EACH PROPERTY ON THE EXEMPT SIDE OF  THE  TAX  ROLLS  UNDER  A
 PAYMENT IN LIEU OF TAX AGREEMENT.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03251-01-5
 S. 3245                             2

   § 2. Paragraph b of subdivision 2-a of section 2023-a of the education
 law, as amended by section 3 of subpart C of part C of chapter 20 of the
 laws of 2015, is amended to read as follows:
   b. The commissioner of taxation and finance shall calculate a quantity
 change  factor for the coming school year for each school district based
 upon the physical or quantity  change,  as  defined  by  section  twelve
 hundred twenty of the real property tax law, reported to the commission-
 er  of  taxation  and  finance  by the assessor or assessors pursuant to
 section five hundred seventy-five of the  real  property  tax  law.  The
 quantity change factor shall show the percentage by which the full value
 of  the  taxable real property in the school district has changed due to
 physical or quantity change between the second final assessment roll  or
 rolls  preceding the final assessment roll or rolls upon which taxes are
 to be levied, and the final assessment roll or rolls immediately preced-
 ing the final assessment roll or  rolls  upon  which  taxes  are  to  be
 levied[. The commissioner of taxation and finance shall, as appropriate,
 promulgate  rules and regulations regarding the calculation of the quan-
 tity change factor which may adjust the calculation based on the  devel-
 opment  on  tax  exempt  land], AND SHALL INCLUDE THE CHANGE IN ASSESSED
 VALUE FOR EACH PROPERTY ON THE EXEMPT SIDE OF  THE  TAX  ROLLS  UNDER  A
 PAYMENT IN LIEU OF TAX AGREEMENT.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

co-Sponsors

View additional co-sponsors

2025-S3245A (ACTIVE) - Details

See Assembly Version of this Bill:: A10860
Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §3-c, Gen Muni L; amd §2023-a, Ed L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8480, A7091
2023-2024: S1045, S8204, A1567

2025-S3245A (ACTIVE) - Summary

2025-S3245A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3245A

SPONSOR: COONEY
 
TITLE OF BILL:

An act to amend the general municipal law and the education law, in
relation to payments in lieu of taxes

 
PURPOSE:

This bill amends the general municipal law and education law to provide
that the tax base growth factor (or quantity change factor) includes the
value of new assessment exempted under a Payment In Lieu of Taxes agree-
ment being added to a community.

Section 1. amends the calculation of the quantity change factor for
local governments to provide that, where a local government has made an
election under new paragraph (e), the commissioner of taxation and
finance shall include the equivalent taxable value of PILOT property in
lieu of the full assessed value of such property.

Section 2. permits, but does not require, a local government to include
an "equivalent taxable value" for PILOT properties when calculating the

quantity change factor under the property tax cap.  The equivalent taxa-
ble value is calculated by dividing the portion of the PILOT payment
attributable to real property taxation by the applicable tax rate or
rates for the levy year, as determined by the commissioner. The bill
expressly prohibits inclusion of the full assessed value of PILOT prop-
erties where this option is elected. This section also provides that the
election must be made by local law or resolution following a public
hearing, shall remain in effect unless repealed, and shall be imple-
mented pursuant to regulations promulgated by the commissioner, includ-
ing rules for allocating PILOT payments among affected taxing jurisdic-
tions and ensuring uniform application.

Section 3. amends the calculation of the quantity change factor for
school districts to provide that, where a school district has made an
election under new paragraph (d) of subdivision two-a of section 2023-a
of the education law, the commissioner shall include the equivalent
taxable value of PILOT property in lieu of the full assessed value of
such property.

Section 4. permits, but does not require, a school district to include
an "equivalent taxable value" for PILOT properties when calculating the
quantity change factor under the property tax cap, consistent with the
local government methodology in General Municipal Law section 3-c. The
election must be made by resolution of the board of education following
a public meeting and shall remain in effect unless rescinded by subse-
quent resolution.  The section further provides that in no event shall
the full assessed value of property subject to a PILOT agreement be
included. It also states that nothing in the act shall be construed to
alter, repeal, or modify the allowable levy growth factor, override
requirements, or the inclusion and subtraction of payments in lieu of
taxes as otherwise required by law.

Section 5. Sets forth the effective date.

 
JUSTIFICATION:

The current tax cap law ignores increases to the tax base of a community
if that increase in tax base occurs under a PILOT agreement. The mechan-
ics of the law considers the payment of PILOTs in a comprehensive
manner, whereby each dollar of the "new" PILOT payments made reduces the
amount of tax an entity can levy by a dollar. In other words, the law
sets the Property Tax and PILOT payments cap by fixing a maximum levy
amount after netting out the effects of any PILOT payments received.

The issue is that the real property improvements made under a PILOT are
not counted under the law. The intent of Tax Base Growth Factor is to
ensure that as a community grows, so too should its revenues to recog-
nize that the community is providing services to more residents and
businesses. By not recognizing PILOT-exempted projects, the law does not
properly capture this contradiction, and a community is restricted in
providing resources in proportion to service demand increases. This
issue can be resolved by amending the law to have the quantity change
factor include the value of new assessment exempted under a PILOT agree-
ment being added to the community. This measure is not a tax increase,
it recognizes growth to be factored into the 2% cap which provides
school districts and municipalities more flexibility to stay under the
cap.

 
LEGISLATIVE HISTORY:

S.8480 FY21-22: Referred to Local Government

S.1045 FY22-23: Passed both houses, vetoed memo 110

S.8204 FY23-24: Referred to Local Government

 
FISCAL IMPLICATIONS:

This bill will have no fiscal impact on the State or Local Government.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
commencing on or after the first of January next succeeding the date
upon which it shall have become a law.

2025-S3245A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3245--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2025
                                ___________
 
 Introduced  by Sens. COONEY, MARTINS, MAY, O'MARA, RHOADS, WEBB, WEIK --
   read twice and ordered printed, and when printed to  be  committed  to
   the  Committee  on Local Government -- recommitted to the Committee on
   Local Government in accordance with Senate Rule 6, sec. 8 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the general municipal law  and  the  education  law,  in
   relation to payments in lieu of taxes
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (i) of  paragraph  (b)  of  subdivision  3  of
 section  3-c  of  the  general municipal law, as amended by section 2 of
 subpart C of part C of chapter 20 of the laws of  2015,  is  amended  to
 read as follows:
   (i) The commissioner of taxation and finance shall calculate a quanti-
 ty  change  factor  for each local government for the coming fiscal year
 based upon the physical or quantity change, as defined by section twelve
 hundred twenty of the real property tax law, reported to the commission-
 er of taxation and finance by the  assessor  or  assessors  pursuant  to
 section  five  hundred  seventy-five  of  the real property tax law. The
 quantity change factor shall show the percentage by which the full value
 of the taxable real property in the local government has changed due  to
 physical  or quantity change between the second final assessment roll or
 rolls preceding the final assessment roll or rolls upon which taxes  are
 to be levied, and the final assessment roll or rolls immediately preced-
 ing  the  final  assessment  roll  or  rolls  upon which taxes are to be
 levied. The commissioner of taxation and finance shall, as  appropriate,
 promulgate  rules and regulations regarding the calculation of the quan-
 tity change factor which may adjust the calculation based on the  devel-
 opment  on  tax  exempt land, INCLUDING THE CHANGE IN ASSESSED VALUE FOR
 EACH PROPERTY ON THE EXEMPT SIDE OF THE TAX ROLLS  UNDER  A  PAYMENT  IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03251-03-6

 S. 3245--A                          2
 
 LIEU  OF TAX AGREEMENT; PROVIDED, HOWEVER, THAT WHERE A LOCAL GOVERNMENT
 HAS ELECTED PURSUANT TO PARAGRAPH (E) OF THIS SUBDIVISION,  THE  COMMIS-
 SIONER SHALL INCLUDE THE EQUIVALENT TAXABLE VALUE DETERMINED PURSUANT TO
 SUCH  PARAGRAPH  IN  LIEU  OF  INCLUDING THE FULL ASSESSED VALUE OF SUCH
 PROPERTY.
   § 2. Subdivision 3 of section 3-c of  the  general  municipal  law  is
 amended by adding a new paragraph (e) to read as follows:
   (E)(I)  NOTWITHSTANDING  ANY  OTHER PROVISION OF THIS SECTION, A LOCAL
 GOVERNMENT MAY ELECT TO INCLUDE, FOR PURPOSES OF CALCULATING THE QUANTI-
 TY CHANGE FACTOR, THE EQUIVALENT TAXABLE VALUE OF REAL PROPERTY  SUBJECT
 TO A PAYMENT IN LIEU OF TAXES AGREEMENT.
   (II)  THE EQUIVALENT TAXABLE VALUE SHALL BE DETERMINED BY DIVIDING THE
 PORTION OF THE PAYMENT IN LIEU OF TAXES ATTRIBUTABLE  TO  REAL  PROPERTY
 TAXATION  BY  THE  APPLICABLE  TAX  RATE  OR RATES FOR THE LEVY YEAR, AS
 DETERMINED BY THE COMMISSIONER OF TAXATION AND FINANCE.
   (III) IN NO EVENT SHALL THE FULL ASSESSED VALUE OF PROPERTY SUBJECT TO
 A PAYMENT IN LIEU OF TAXES AGREEMENT BE INCLUDED IN THE QUANTITY  CHANGE
 FACTOR.
   (IV) A LOCAL GOVERNMENT MAY EXERCISE THE OPTION PROVIDED IN THIS PARA-
 GRAPH  ONLY  UPON  ADOPTION  OF  A  LOCAL LAW OR RESOLUTION, FOLLOWING A
 PUBLIC HEARING, EXPRESSLY ELECTING SUCH TREATMENT. SUCH  ELECTION  SHALL
 REMAIN  IN  EFFECT  UNLESS  SUBSEQUENTLY REPEALED BY LOCAL LAW OR RESOL-
 UTION.
   (V) THE COMMISSIONER OF TAXATION AND FINANCE  SHALL  PROMULGATE  REGU-
 LATIONS  NECESSARY  TO IMPLEMENT THIS PARAGRAPH, INCLUDING METHODOLOGIES
 FOR ALLOCATING PAYMENTS IN LIEU OF TAXES AMONG AFFECTED TAXING JURISDIC-
 TIONS AND ENSURING UNIFORM APPLICATION.
   § 3. Paragraph b of subdivision 2-a of section 2023-a of the education
 law, as amended by section 3 of subpart C of part C of chapter 20 of the
 laws of 2015, is amended to read as follows:
   b. The commissioner of taxation and finance shall calculate a quantity
 change factor for the coming school year for each school district  based
 upon  the  physical  or  quantity  change,  as defined by section twelve
 hundred twenty of the real property tax law, reported to the commission-
 er of taxation and finance by the  assessor  or  assessors  pursuant  to
 section  five  hundred  seventy-five  of  the real property tax law. The
 quantity change factor shall show the percentage by which the full value
 of the taxable real property in the school district has changed  due  to
 physical  or quantity change between the second final assessment roll or
 rolls preceding the final assessment roll or rolls upon which taxes  are
 to be levied, and the final assessment roll or rolls immediately preced-
 ing  the  final  assessment  roll  or  rolls  upon which taxes are to be
 levied. The commissioner of taxation and finance shall, as  appropriate,
 promulgate  rules and regulations regarding the calculation of the quan-
 tity change factor which may adjust the calculation based on the  devel-
 opment  on  tax  exempt land, INCLUDING THE CHANGE IN ASSESSED VALUE FOR
 EACH PROPERTY ON THE EXEMPT SIDE OF THE TAX ROLLS  UNDER  A  PAYMENT  IN
 LIEU  OF  TAX AGREEMENT; PROVIDED, HOWEVER, THAT WHERE A SCHOOL DISTRICT
 HAS MADE AN ELECTION PURSUANT TO PARAGRAPH D OF  THIS  SUBDIVISION,  THE
 COMMISSIONER  SHALL  INCLUDE  THE  EQUIVALENT  TAXABLE  VALUE DETERMINED
 PURSUANT TO SUCH ELECTION IN LIEU OF INCLUDING THE FULL  ASSESSED  VALUE
 OF SUCH PROPERTY.
   § 4. Subdivision 2-a of section 2023-a of the education law is amended
 by adding a new paragraph d to read as follows:
   D.  (I)  A SCHOOL DISTRICT MAY ELECT TO INCLUDE THE EQUIVALENT TAXABLE
 VALUE OF PROPERTY SUBJECT TO A PAYMENT IN LIEU OF TAXES AGREEMENT IN THE
 S. 3245--A                          3
 
 CALCULATION OF ITS QUANTITY CHANGE FACTOR, CONSISTENT WITH PARAGRAPH (E)
 OF SUBDIVISION THREE OF SECTION THREE-C OF THE GENERAL MUNICIPAL LAW.
   (II)  SUCH ELECTION SHALL BE MADE BY RESOLUTION OF THE BOARD OF EDUCA-
 TION FOLLOWING A PUBLIC  MEETING  AND  SHALL  REMAIN  IN  EFFECT  UNLESS
 RESCINDED BY SUBSEQUENT RESOLUTION.
   (III) IN NO EVENT SHALL THE FULL ASSESSED VALUE OF PROPERTY SUBJECT TO
 A PAYMENT IN LIEU OF TAXES AGREEMENT BE INCLUDED.
   (IV) NOTHING IN THIS ACT SHALL BE CONSTRUED TO ALTER, REPEAL, OR MODI-
 FY  THE  ALLOWABLE  LEVY  GROWTH  FACTOR,  OVERRIDE REQUIREMENTS, OR THE
 INCLUSION AND SUBTRACTION OF PAYMENTS IN  LIEU  OF  TAXES  AS  OTHERWISE
 REQUIRED BY LAW.
   § 5. This act shall take effect immediately and shall apply to taxable
 years  commencing  on  or after the first of January next succeeding the
 date upon which it shall have become a law.  Effective immediately,  the
 addition,  amendment  and/or  repeal of any rule or regulation necessary
 for the implementation of this act on its effective date are  authorized
 to be made and completed on or before such effective date.

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Senate Bill S3245A

Sponsored By

Current Bill Status - In Senate Committee Local Government Committee

Actions

Bill Amendments

co-Sponsors

2025-S3245 - Details

2025-S3245 - Summary

2025-S3245 - Sponsor Memo

2025-S3245 - Bill Text download pdf

co-Sponsors

2025-S3245A (ACTIVE) - Details

2025-S3245A (ACTIVE) - Summary

2025-S3245A (ACTIVE) - Sponsor Memo

2025-S3245A (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S3245A

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Sponsored By

Current Bill Status - In Senate Committee Local Government Committee

Actions

Bill Amendments

co-Sponsors

2025-S3245 - Details

2025-S3245 - Summary

2025-S3245 - Sponsor Memo

2025-S3245 - Bill Text download pdf

co-Sponsors

2025-S3245A (ACTIVE) - Details

2025-S3245A (ACTIVE) - Summary

2025-S3245A (ACTIVE) - Sponsor Memo

2025-S3245A (ACTIVE) - Bill Text download pdf

Comments