What's happening
This bill requires that the two percent cap on payments in lieu of taxes for property acquired by the authority be calculated in aggregate for each municipality or school district, not per parcel.
Why it matters
Prevents municipalities and school districts from being financially disadvantaged by property transfers. By requiring the 2% cap to be applied in aggregate rather than per parcel, this bill ensures that total payments in lieu of taxes (PILOT) more closely match the actual revenue needs and tax losses of the whole jurisdiction, rather than potentially lowering revenue if calculated individually for each property.
Limits the authority’s ability to reduce tax-equivalent payments over time. Calculating the cap in aggregate closes a potential loophole where the authority could minimize PILOT increases by splitting property into multiple parcels, thus protecting municipalities and school districts from gradual revenue erosion.
Promotes greater fiscal predictability and stability for local governments and schools. With the aggregate calculation, budgeting and long-term financial planning become more reliable, since local governments can anticipate consistent PILOT revenue streams that better reflect the totality of acquired property within their boundaries.
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Limit LIPA 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.
Limit LIPA Tax Payment Increases
In Senate Committee · Energy And Telecommunications · Sponsor Monica Martinez
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6457
2019-2020 Regular Sessions
IN ASSEMBLY
March 7, 2019
Introduced by M. of A. THIELE -- read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to certain 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. 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. The payments in lieu of taxes subject to the two percent limit set forth in this subdivision shall be calculated based upon the real property acquired by the authority in the aggregate in each municipality or school district and not on a parcel by parcel basis.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10077-02-9
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.