What's happening
This bill allows payments in lieu of taxes (PILOTs) to be designated as tax liens with priority status on property in New York.
Why it matters
Strengthens enforcement of PILOT agreements. By allowing PILOT payments to become tax liens with priority status, local governments and agencies gain a powerful tool to ensure timely payment from property owners, reducing the risk of missed or delayed PILOT revenues.
Improves financial security for municipalities. The new priority lien status means PILOT obligations are collectable ahead of most other debts or claims on a property, making it less likely that municipalities will lose out on these critical revenues in the event of foreclosure or bankruptcy.
Aligns PILOTs with traditional property taxes. Treating PILOTs as equivalent to "taxes or other lawful charges" and subjecting them to the same enforcement mechanisms (like tax foreclosure) puts them on par with regular property taxes, potentially streamlining administration and collection processes.
Potential impact on property owners and development. Developers or property owners who enter into PILOT agreements will face a higher level of risk if they default, as their property could be subject to tax foreclosure more quickly, possibly affecting negotiations and willingness to participate in PILOT programs.
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Who cares
Headline styles
Treat PILOTs as Taxes
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to local government
- Referred to local government
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2285
2017-2018 Regular Sessions
IN SENATE
January 12, 2017
Introduced by Sens. O'MARA, MARCHIONE -- 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, in relation to designating payments made pursuant to payment in lieu of taxes agreements as "taxes or other lawful charges"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 15 of section 858 of the general municipal law, as added by chapter 356 of the laws of 1993, is amended to read as follows:
(15) To enter into agreements requiring payments in lieu of taxes. Such agreements shall be in writing and in addition to other terms shall contain: the amount due annually to each affected tax jurisdiction (or a formula by which the amount due can be calculated), the name and address of the person, office or agency to which payment shall be delivered, the date on which payment shall be made, and the date on which payment shall be considered delinquent if not paid. Unless otherwise agreed by the affected tax jurisdictions, any such agreement shall provide that payments in lieu of taxes shall be allocated among affected tax jurisdictions in proportion to the amount of real property tax and other taxes which would have been received by each affected tax jurisdiction had the project not been tax exempt due to the status of the agency involved in the project. A copy of any such agreement shall be delivered to each affected tax jurisdiction within fifteen days of signing the agreement. In the absence of any such written agreement, payments in lieu of taxes made by an agency shall be allocated in the same proportions as they had been prior to January first, nineteen hundred ninety-three for so long as the agency's activities render a project non-taxable by affected tax jurisdictions. Notwithstanding any other general, special or local law, payments under such agreements may be designated as "taxes or other lawful charges" by the agency entering
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07058-01-7
S. 2285 2
into such agreements. Upon such designation, and for the period that payments are made under the respective agreements, the amounts due shall become liens on the subject property, with priority superior to all existing and future claims or encumbrances on the subject property. The lien shall attach on a calendar year basis on February first of each calendar year in an amount equal to all payments due under the respective agreements in said calendar year and said lien shall have priority and parity as if a tax lien under section nine hundred twelve of the real property tax law. The agency may bring an action to collect amounts due after said lien date under section eleven hundred twenty-three of the real property tax law as the enforcing officer, subject to complying with title three of article eleven of the real property tax law, excepting, however, section eleven hundred twenty-two of the real property tax law where in lieu thereof, the agency shall file the subject agreement in the county clerk's office with a designation of payments which are delinquent;
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.
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, in relation to designating payments made pursuant to payment in lieu of taxes agreements as "taxes or other lawful charges"
Purpose of bill
The bill provides that Payments In Lieu of Taxes may be designated as "taxes or other lawful charges"
Summary of specific provisions
Section 1 of the bill amends Subdivision 15 of section 858 of the general municipal law by adding a new paragraph that provides that payments in lieu of taxes may be designated as "taxes or other lawful charges" by the agency entering into such agreements and the amounts due will become liens on the subject property with priority superior to all existing and future claims or encumbrances on the subject property. The agency may bring an action to collect amounts due after said lien date.
Section 2 Provides that this act shall take effect 120 days after enactment.
Justification
The bill provides Industrial Development Agency's entering into Payment in Lieu of Taxes agreement with the needed resources in dealing with delinquent payments under respective agreements the agency has entered into with another party.
Prior legislative history
2014 - S. 3592 2016 - S. 1152
Fiscal implications
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.