What's happening
This bill changes how payments in lieu of taxes are calculated for properties acquired by the authority, tying increases to tax rate growth rather than prior payments.
Why it matters
Shifts focus from payment history to local tax rate changes. Instead of basing payments in lieu of taxes (PILOT) on the amount paid the previous year (with a capped annual increase), the bill ties future increases to changes in the total tax rate for the area, potentially making PILOTs more responsive to local fiscal conditions.
Limits PILOT growth to reflect actual tax rate increases. The authority’s payments can only rise by up to 2% of the increase in the total tax rate, which could result in smaller payment increases when tax rates are flat or declining, potentially reducing revenue predictability for municipalities and school districts.
Aligns PILOT calculations with assessed property values. By explicitly tying increases to changes in assessed value as reflected in the current year’s tax roll, the formula may better mirror the economic realities of property taxation, impacting how local governments plan their budgets.
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
Long Island Power Authority
The bill would replace the existing cap on annual payment increases with a formula limiting payments to no more than two percent of any increase in the total tax rate, based on the current year's final assessed value.
Municipalities receiving LIPA payments
The bill would change how their payments in lieu of taxes are calculated beginning with the tax year starting December 1, 2020.
School districts receiving LIPA payments
Their payments for former LILCO property removed from the tax rolls would be subject to the new tax-rate-based formula rather than the existing cap tied to the prior year's payment.
Headline styles
Limit LIPA Tax Payments
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
- 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.
Cap 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
6003
2019-2020 Regular Sessions
IN SENATE
May 16, 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 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] tax year starting on [January] December first, two thousand [fifteen] twenty, and for each [calendar] tax 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] equal no more than two percent of the increase in total tax rate for the current tax year over the total tax rate of the prior tax year, if any, based upon the assessed value as reflected on the final assessment roll of the current tax year.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11579-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to payments in lieu of taxes
Purpose
This legislation will include special franchise values in the calcu- lation. of LIPA's PILOT payments beginning December 1, 2020.
Summary of provisions
Section 1. Amend the public authorities law to allow payments in lieu of taxes after December 1, 2020 to include assessments of special franchise values.
Section 2. Effective Date.
Justification
The 2013 LIPA Reform Act caps LIPA's PILOT payments at 2% without any ability to capture the growth of LIPA's special franchise values. LIPA's special franchise values are determined by the State on an annual basis, not by the local assessment jurisdictions. Even though there has been significant growth in LIPA's special franchise figures, the taxing jurisdictions and ratepayers do not benefit from this growth as a result of the 2% cap on PILOT payments.If the State determines the value of LIPA's special franchise increased from one year to the next by 20%, LIPA's payments are still capped at a 2% increase from the prior year.
The exclusion of special franchise values is counterintuitive of a fair and equitable assessment. This legislation minimizes the unfair shift of LIPA's payment obligations, by allowing the payments made by LIPA to reflect the growth of LIPA's special franchise values. The legislation will also maintain stability of LIPA's payments from one year to the next, as the tax rate will be capped at 2%, even when the increase for other taxpayers exceeds 2%.
Prior legislative history
None
Fiscal implications
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.