What's happening
This bill clarifies that the two percent cap on payments in lieu of taxes by the authority applies to total property in each municipality or school district, not individual parcels.
Why it matters
Prevents manipulation of the tax cap by clarifying that the 2% limit on payment increases applies to the total property acquired by the authority in each municipality or school district, rather than being calculated for each individual property parcel. This closes a potential loophole that could have allowed the overall payments to grow faster than intended through parcel-by-parcel calculations.
Provides greater predictability and stability for local government and school district budgets,. since municipalities and school districts will know that payments in lieu of taxes (PILOTs) from the authority cannot collectively increase by more than 2% per year, making fiscal planning more reliable.
May impact municipalities or school districts with significant property holdings acquired by the authority. by potentially limiting the growth of PILOT revenues, especially if new parcels are acquired or property values change, since the cap applies to the aggregate, not just new or individual parcels.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Limit LIPA Tax Payment Increases
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
- Recommitted to rules
- Ordered to third reading cal.1007
- Committee discharged and committed to rules
- Reported and committed to finance
- Referred to energy and telecommunications
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 Payments
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Fred Thiele
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4172
2019-2020 Regular Sessions
IN SENATE
March 4, 2019
Introduced by Sen. MARTINEZ -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
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.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to certain payments in lieu of taxes
Purpose
To clarify provisions relating to the calculation of certain payments in lieu of taxes (PILOT) made by the Long Island Power Authority (LIPA).
Summary of provisions
Section 1. Amends Subdivision 1 of Section 1020-q of the Public Authori- ties Law relating to PILOTs made by LIPA to municipalities and school districts.
Section 2 provides for the effective date.
Justification
Pursuant to the provisions of Chapter 173 of the Laws of 2013 and begin- ning on January 1, 2015, LIPA has been making PILOT payments on property that was owned by the Long Island Lighting Company (LILCO) and was taken off the tax rolls after being acquired by LIPA 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 acqui- sition had not occurred. The amount that taxing authorities can assess and charge to LIPA is capped at two percent above the amount assessed to LIPA the previous year. LIPA has taken the position that this two percent cap is based on each separate parcel rather than the aggregate of LIPA owned parcels in the taxing jurisdiction. This difference in calculation has led to shortfalls in some taxing jurisdictions by over a million dollars every year.
This legislation amends Section 1020-q of the Public Authorities Law to clarify that the PILOT payments subject to the two percent limit shall be calculated based upon the real property acquired by LIPA in the aggregate in each municipality or school district and not on a parcel by parcel basis.
Legislative history
2019: New Legislation
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.