What's happening
This bill requires businesses making payments in lieu of taxes to notify local governments in writing 30 days before seeking a property assessment change.
Why it matters
Improves transparency for local governments. By requiring written notice 30 days in advance, local governments can better anticipate and prepare for potential changes in revenue from businesses that pay payments in lieu of taxes (PILOTs).
Gives localities time to respond. Advance notice allows counties, towns, cities, villages, and school districts to assess the impact of a possible property assessment change, potentially enabling them to participate in hearings or negotiations.
Could affect local budgets and services. Since PILOT payments are often significant revenue sources (especially for school districts), any changes to assessment can alter fiscal planning and may influence decisions on public services, staffing, or tax rates.
May deter abrupt or strategic assessment challenges. The notice requirement makes it harder for businesses to seek sudden changes without governmental awareness, helping ensure communities aren't caught off guard by revenue shifts.
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Who cares
Headline styles
Notify Tax Changes Early
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- 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.
Businesses Must Notify Tax Changes
In Assembly Committee · Codes · Sponsor William Magnarelli
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4174
2019-2020 Regular Sessions
IN SENATE
March 4, 2019
Introduced by Sen. GAUGHRAN -- 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; notice. Notwithstanding any other provision of law, any person, firm, partnership, corporation, limited liability company or any other business entity which makes payments in lieu of taxes to any county, town, village, city or school district, shall, prior to filing with such county, town, village, city or school district for a change of assessment, notify such county, town, village, city or school district of such business entity's intention to file for such change. Such notification of intention shall be made in writing and shall be made at least thirty days prior to such filing for change of assessment.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00202-01-9
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 requires businesses that make payments (PILOTS) to provide local governments and school districts their intention to change assess- ment.
Summary of provisions
Section 1: The Real Property Tax Law is amended by adding a new section 561 to require businesses that make payments in lieu of taxes (PILOTs) to provide local governments and school districts with notice of their intention to change their assessment. Such notification must be made in writing and must be made at least thirty days prior to such filing for change of assessment.
Section 2: Establishes the Effective Date.
Justification
Many businesses have been enticed to areas through a development program known as PILOT, payment in lieu of taxes. The program exempts certain businesses from property taxes in exchange for payments to the county, towns and 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.
A successful challenge would create a substantial reduction in revenue to a locality and school district that relies on PILOT payments. The potential impact to a school district or locality could be devastating. Localities and school districts should be given the courtesy of previous notice that the business is filing an assessment challenge. Notification would allow for planning and budgeting decisions to be made that would reflect a possible reduction in PILOT payments.
Legislative history
S1293/A.8859 of 2017/18; S.425 of 2015/16.
Fiscal implications
None to the State. This change in the law would help localities and school districts prepare financial plans.
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.