What's happening
This bill requires that changes in assessed value for properties with payment in lieu of tax agreements be included in tax calculations for municipalities and school districts.
Why it matters
Ensures municipalities and school districts account for changes in the assessed value of properties under Payment In Lieu Of Tax (PILOT) agreements. potentially increasing revenues or adjusting tax caps to reflect economic development that previously might not have been included.
Creates greater transparency and accuracy in calculating tax levy limits. , so that local governments and school boards cannot bypass tax cap calculations by shifting value into PILOT agreements.
May impact the distribution of tax burdens and local budgeting. , especially in areas with significant economic development projects or properties that frequently use PILOTs, such as commercial developments or renewable energy projects.
Could influence negotiations between local governments and developers over PILOT terms. , since changes in assessed value will now have a direct effect on municipal and school district finances.
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Who cares
Headline styles
Track PILOT Property Values
Plain English, a few words. Used as the page title.
Sponsors
History
- Substituted by A1841A
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1105
- Print number 2122a
- Amend and recommit to local government
- Referred to local government
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.
Track PILOT Property Values
Vetoed · Sponsor Joseph Morelle
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2122--A
2017-2018 Regular Sessions
IN SENATE
January 12, 2017
Introduced by Sens. O'MARA, CARLUCCI, FUNKE, GALLIVAN, LATIMER, MARCHIONE, ORTT, RANZENHOFER, RITCHIE, VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- 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 Assembly, 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 quantity 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 commissioner 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 preceding 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 quantity change factor which may adjust the calculation based on the development 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.
LBD00937-03-7
S. 2122--A 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 commissioner 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 preceding 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 quantity change factor which may adjust the calculation based on the development 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, provided, however, that the amendments to section 3-c of the general municipal law and section 2023-a of the education law made by sections one and two of this act, respectively, shall not affect the repeal of such sections and shall be deemed repealed therewith. Effective immediately, the addition, amendment and/or repeal of any rules or regulations necessary for the implementation of this act on its effective date are authorized to be made on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law and the education law, in relation to payments in lieu of taxes
Purpose or general idea of bill
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-merit being added to a community.
Summary of 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 taxation 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 new tax cap law ignores increases to the tax base of a community if that increase in tax base occurs under a PILOT agreement The mechanics of the law take into account 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 in the Tax Base Growth Factor - the intent which is to insure that as a community grows, so too should its revenues because that community is providing services to more residences and businesses. By ignoring PILOT-exempted projects, the law does not properly capture this phenomenon and a community cannot expand its resources in proportion to service demand increases These issues can be resolved by amending the law to have the quantity change factor include the value of new assessment exempted under a PILOT agreement being added to a community
Prior legislative history
2014 - S 3591 2016 - S 1151B
Fiscal implication
None
Effective date
This act shall take effect on the hundred twentieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.