What's happening
This bill delays reductions in school district payments from property owners with PILOT agreements after successful assessment challenges until the next taxable year.
Why it matters
Ensures school district budgets have more predictability. by requiring that any reduction in PILOT (Payment In Lieu Of Taxes) payments due to successful property assessment challenges takes effect the next year, not immediately, allowing districts to plan for revenue changes.
Reduces financial shock for schools. that could otherwise face sudden mid-year funding drops if large commercial properties (often with PILOT agreements) win assessment reductions, which might otherwise force unexpected budget cuts or service disruptions.
May influence negotiations between municipalities and businesses. entering PILOT agreements, as the timing of possible payment reductions is clarified and delayed, potentially affecting financial planning for both parties.
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Who cares
Headline styles
Delay Tax Cut for Businesses
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1181
- Referred to local government
- Committed to rules
- Advanced to third reading
- Amended 4156a
- 2nd report cal.
- 1st report cal.1108
- 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.
Delay Tax Cut For Businesses
In Senate Committee · Rules · Sponsor Amy Paulin
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4156--A Cal. No. 1108
2017-2018 Regular Sessions
IN SENATE
February 3, 2017
Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -reported favorably from said committee, ordered to first and second report, amended on second report, ordered to a third reading, and to be reprinted as amended, retaining its place in the order of third reading
AN ACT to amend the real property tax law, in relation to changes in assessment for businesses that make payments in lieu of taxes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property tax law is amended by adding a new section 561 to read as follows:
§ 561. Payments in lieu of taxes; change of assessment; effective date. Notwithstanding any other provision of law, for any payment in lieu of taxes agreement entered into on or after the effective date of this section, when the assessment of a property making payments in lieu of taxes is challenged through the grievance process, any reduction in payments in lieu of taxes made to a school district resulting from such challenge shall not take effect until the following taxable status year.
§ 2. This act shall take effect on the sixtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05987-04-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to changes in assessment for businesses that make payments in lieu of taxes
Purpose
This bill ensures that adjustments to payments in lieu of taxes (PILOTs) based on a change of assessment do not affect school districts in the middle their fiscal year. Instead, the change of assessment will take effect once the school's fiscal year has ended.
Summary of provisions
The real property tax law is amended by adding a new section 561 to require that when PILOT property assessments, made on or after the effective date of this section, are changed through the grievance process, any reduction does not take effect until the following fiscal school year.
Justification
Businesses can be enticed to areas through the development incentive know as payment in lieu of taxes (PILOTs). The program reduces property taxes for certain businesses in exchange for payments to the county, towns and/or school districts where they are located. Some PILOT agreements have provisions that allow the business to challenge property tax assessments and win a credit against future payments if found to be a valid challenge.
Successful assessment challenges potentially create a substantial reduction in revenue to a school district. Given that school budgets are largely fixed at the beginning of the school district's fiscal year, when an assessment-based PILOT is challenged, it should not impact a school district if it occurs in the middle of their fiscal year. Any reduction that is awarded through a grievance process affecting school taxes should not take effect until the following fiscal year.
Legislative history
S.7957 of 2016
Fiscal implications
None.
Effective date
This act shall take effect on the sixtieth day after it shall become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.