What's happening
This bill requires the New York Power Authority to enter written agreements for annual, fixed payments in lieu of taxes to municipalities and school districts, with specific scheduling and notification rules.
Why it matters
Requires formal written agreements for payments in lieu of taxes (PILOTs). By mandating that the New York Power Authority (NYPA) must enter into written agreements with municipalities and school districts, the bill creates enforceable contracts—reducing uncertainty for local governments about future revenue streams.
Establishes predictable, fixed payment schedules. The bill demands an annual schedule of fixed PILOT amounts, determined in advance and based on prior tax rolls, which helps local governments and school districts budget and plan more reliably.
Limits last-minute changes and improves transparency. Any modifications to annual PILOT payments must be finalized by February 1st for the upcoming fiscal year, with written notice required—preventing unexpected revenue shortfalls and enhancing transparency for affected municipalities and schools.
Clarifies third-party beneficiary status and distribution. By specifying that municipalities and school districts are intended third-party beneficiaries of these agreements, and detailing the payment distribution process, the bill strengthens their legal standing to enforce agreements and ensures funds are properly allocated.
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Who cares
Headline styles
Guarantee School Tax Payments
Plain English, a few words. Used as the page title.
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History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Cap School Tax Payments
In Senate Committee · Finance · Sponsor Carl L. Marcellino
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6696
2017-2018 Regular Sessions
IN ASSEMBLY
March 15, 2017
Introduced by M. of A. LAVINE -- read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to payments in lieu of taxes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 1020-q of the public authorities law, as amended by section 8 of part A of chapter 173 of the laws of 2013, is amended to read as follows:
1. (a) Each year after property theretofore owned by LILCO is acquired by the authority by any means authorized by this title and, as a consequence, is removed from the tax rolls, the authority shall make payments in lieu of taxes to municipalities and school districts equal to the taxes and assessments which would have been received from year to year by each such jurisdiction if such acquisition had not occurred, provided, however, that for the calendar year starting on January first, two thousand fifteen, and for each calendar year thereafter, such payments in lieu of taxes shall not exceed the in lieu of tax payments made to such municipalities and school districts in the immediately preceding year by more than two percent.
(b) The authority shall enter into written agreements to make payments in lieu of taxes pursuant to section one thousand twenty-p of this title for all parcels of property subject to this section. Such agreements shall, without limitation, include an annual schedule of fixed payments in lieu of taxes on or before February first to be paid to municipalities and school districts for the following fiscal year of such municipalities and school districts based upon the two prior year's tax rolls consistent with the two percent calendar year limitation in paragraph (a) of this subdivision, which shall be paid by the authority to the assessing jurisdiction for the benefit of the municipalities and school districts and distributed to the municipalities and school
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05835-01-7
A. 6696 2
districts as intended third party beneficiaries in accordance with the schedule for payment of taxes for each municipality and school district. If any annual payment in lieu of taxes is modified during the course of the written agreement, such modification must be made on or before February first of each year with written notice to the municipalities and school districts. Any modification made after February first shall not be deemed effective until the year subsequent to the ensuing fiscal year.
§ 2. Subdivision 2 of section 1020-p of the public authorities law, as added by chapter 517 of the laws of 1986, is amended to read as follows:
2. The authority shall be required to pay no taxes nor assessments upon any of the property acquired or controlled by it or upon its activities in the operation and maintenance thereof or upon income derived therefrom, provided that [nothing herein shall prevent] the authority [from entering] shall enter into agreements to make payments in lieu of taxes with the governing bodies of municipalities, as provided for in section one thousand twenty-q of this title.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.