Provides that prior to the approval of any application for a payment in lieu of taxes by an industrial development agency, the agreement shall obtain approval of all affected tax jurisdictions

BILL NUMBER:S7557

Title of bill

An act to amend the general municipal law, in relation to agreements requiring payments in lieu of taxes entered into by industrial development agencies

Purpose

To ensure that IDA payment in lieu of taxes (PILOT) agreement are approved by all affected tax jurisdictions before going into effect.

Summary of provisions

Section one amends subdivision 15 of section 858 of the general municipal law to require that an IDA payment in lieu of taxes (PILOT) agreement must be approved by all affected tax jurisdictions before going into effect.

Section two sets the enacting date.

Justification

Industrial Development Agencies have statutory authority to grant tax exemptions to businesses in order to foster economic development. However, many IDAs cover large geographic areas, such as entire counties. These IDAs encompass numerous levels of government, and their actions to grant tax exemptions effect all other governments in which the project will be located in. This legislation will allow all affected tax jurisdictions to have a voice when an IDA is granting a PILOT that can adversely affect that localities tax base. This proposal will create more accountability for PILOTs and foster an environment of collaborative economic development.

Legislative history

This is a new bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately.