What's happening
This bill delays the effect of reduced PILOT payments to school districts after a property assessment challenge until the next tax year.
Why it matters
Gives school districts more time to adjust their budgets. by ensuring that any reduction in PILOT (Payment In Lieu Of Taxes) payments due to a property assessment challenge will not immediately impact school funding within the same fiscal year, helping districts avoid sudden shortfalls.
Creates predictability for local governments and schools. by delaying the impact of assessment changes, which can make annual financial planning and staffing decisions more stable and less reactive to legal disputes over property valuations.
Potentially discourages abrupt or strategic assessment challenges. by businesses seeking immediate tax relief, as the financial benefits of a successful challenge would be delayed until the next tax year, thus promoting a more orderly process for both taxpayers and municipalities.
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Who cares
Headline styles
Delay Business Tax Reductions
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.421
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.466
- Substituted for A218
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 48–14
- Ordered to third reading cal.1495
- Committee discharged and committed to rules
- 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.
Change Tax Assessment Rules
Assembly Floor Calendar · Sponsor Amy Paulin
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3972
2019-2020 Regular Sessions
IN SENATE
February 22, 2019
Introduced by Sen. HARCKHAM -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
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.
LBD01789-01-9
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 of 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 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.
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 agree- ments 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
A.7211-A of 2017, referred to ways and means, passed assembly in 2018. Same as S.4156-A of 2017 and 2018, committed to rules.
Fiscal implications
None.
Effective date
This act shall take effect on the sixtieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.