Requires businesses that make PILOTs to provide prior notice of challenge to assessment
Senator Carl L. Marcellino (R-Syosset), announced today that the Senate unanimously passed his legislation, Senate Bill 950, which would require businesses that make payments in lieu of taxes (PILOTs) to provide local governments and school districts with notice of their intention to change their assessment.
“Many businesses have been enticed to areas through PILOT agreements. A successful challenge could create a substantial reduction in revenue to a locality and school district that relies on PILOT payments. The potential local impact could be devastating. Municipalities and school districts should be given the courtesy of previous notice that the business is filing an assessment challenge,” said Senator Marcellino.
A PILOT program exempts certain businesses from property taxes in exchange for payments to the county, towns and school districts where they are located. The legislation would require that the business provide the affected entity at least 30 days notice prior to filing for any change of assessment.
In 2005, in Nassau County Goya Foods filed and won a reduction in its property tax assessment. The reduction dropped the company’s payment to the Bethpage school system from $505,154 to $49,526. At the time Bethpage was notified of the change of assessment, the school system had already adopted a school budget and set a tax rate. Currently LIPA is pursuing a reassessment on the Northport Power Plant at Glenwood Landing that would decimate local taxpayers.
“The notification provided in this bill is a critical first step as more and more of these PILOT challenges arise. We must also pass my legislation, S.5872 that would spread the impact of any PILOT reduction over a ten year. A phase out would allow for planning and budgeting decisions to be made that would reflect the reduction and lessen the impact on the taxpayer,” concluded Senator Marcellino.
The bill has been sent to the Assembly where it is sponsored by Assemblywoman Michelle Schimmel.