What's happening
This bill requires changes in assessed values for properties under payment in lieu of tax agreements to be included when calculating quantity change factors for local governments and school districts.
Why it matters
Ensures greater transparency and accuracy in local and school tax calculations. by requiring that changes in the assessed value of properties under PILOT agreements are included in the official tax roll data, potentially impacting how much revenue is anticipated from year to year.
May affect local government and school district budgeting. by providing a more complete picture of the property value base, including properties that make payments in lieu of taxes, not just fully taxable properties—helping prevent under- or over-estimating available funding.
Could change the incentives and negotiations around PILOT agreements. since localities must now account for shifts in value on these properties, potentially influencing decisions about future development projects and their contributions to community finances.
Addresses a previous loophole. where development on tax-exempt land under PILOTs was not always reflected in local property value growth calculations, potentially leading to fairer comparisons and equitable treatment in tax cap calculations and state aid formulas.
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
Track PILOT Property Changes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Referred to local government
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
936
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sen. O'MARA -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law and the education 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. Subparagraph (i) of paragraph (b) of subdivision 3 of section 3-c of the general municipal law, as amended by section 2 of subpart C of part C of chapter 20 of the laws of 2015, is amended to read as follows:
(i) The commissioner of taxation and finance shall calculate a quantity change factor for each local government for the coming fiscal year based upon the physical or quantity change, as defined by section twelve hundred twenty of the real property tax law, reported to the commissioner of taxation and finance by the assessor or assessors pursuant to section five hundred seventy-five of the real property tax law. The quantity change factor shall show the percentage by which the full value of the taxable real property in the local government has changed due to physical or quantity change between the second final assessment roll or rolls preceding the final assessment roll or rolls upon which taxes are to be levied, and the final assessment roll or rolls immediately preceding the final assessment roll or rolls upon which taxes are to be levied[. The commissioner of taxation and finance shall, as appropriate, promulgate rules and regulations regarding the calculation of the quantity change factor which may adjust the calculation based on the development on tax exempt land], and shall include the change in assessed value for each property on the exempt side of the tax rolls under a payment in lieu of tax agreement.
§ 2. Paragraph b of subdivision 2-a of section 2023-a of the education law, as amended by section 3 of subpart C of part C of chapter 20 of the laws of 2015, is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06106-01-9
S. 936 2
b. The commissioner of taxation and finance shall calculate a quantity change factor for the coming school year for each school district based upon the physical or quantity change, as defined by section twelve hundred twenty of the real property tax law, reported to the commissioner of taxation and finance by the assessor or assessors pursuant to section five hundred seventy-five of the real property tax law. The quantity change factor shall show the percentage by which the full value of the taxable real property in the school district has changed due to physical or quantity change between the second final assessment roll or rolls preceding the final assessment roll or rolls upon which taxes are to be levied, and the final assessment roll or rolls immediately preceding the final assessment roll or rolls upon which taxes are to be levied[. The commissioner of taxation and finance shall, as appropriate, promulgate rules and regulations regarding the calculation of the quantity change factor which may adjust the calculation based on the development on tax exempt land], and shall include the change in assessed value for each property on the exempt side of the tax rolls under a payment in lieu of tax agreement.
§ 3. This act shall take effect on the one hundred twentieth day after it shall have become a law, provided, however, that the amendments to section 3-c of the general municipal law and section 2023-a of the education law made by sections one and two of this act, respectively, shall not affect the repeal of such sections and shall be deemed repealed therewith. Effective immediately, the addition, amendment and/or repeal of any rules or regulations necessary for the implementation of this act on its effective date are authorized to be made on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law and the education law, in relation to payments in lieu of taxes
Purpose or general idea of bill
This bill amends the general municipal law and education law to provide that the tax base growth factor (or quantity change factor) include the value of new assessment exempted under a Payment In Lieu of Taxes agree-merit being added to a community.
Summary of provisions
Section 1 amends section 3-c of the general municipal law to include the change in assessed value for each property on the exempt side of the tax rolls under PILOT agreements when the commissioner of taxation and finance calculates the quantity change factor for each local government.
Section 2 amends section 2023-a of the education law to provide that the change in assessed value for each property on the exempt side of the tax rolls under PILOT agreements is included when the commissioner of taxa- tion and finance calculates the quantity change factor for each local government
Section 3 provides an effective date one hundred twenty days after enactment.
Justification
The new tax cap law ignores increases to the tax base of a community if that increase in tax base occurs under a, PILOT agreement The mechanics of the law take into account the payment of PILOTS in a comprehensive manner, whereby each dollar of the "new" PILOT payments made reduces the amount of tax an entity can levy by a dollar In other words the law sets the Property Tax and PILOT payments cap by fixing a maximum levy amount after netting out the effects of any PILOT payments received. The issue is that the real property improvements made under a PILOT are not count- ed under the law in the Tax Base Growth Factor - the intent which is to insure that as a community grows, so too should its revenues because that community is providing services to more residences and businesses. By ignoring PILOT-exempted projects, the law does not properly capture This phenomenon and a community cannot expand its resources in propor- tion to service demand increases These issues can be resolved by amend- ing the law to have the quantity change factor include the value of new assessment exempted under a PILOT agreement being added to a community.
Prior legislative history
2014 - S 3591 2016 - S 11518 2017 - S 2122 2018 - S 8062
Fiscal implication
None
Effective date
This act shall take effect on the hundred twentieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.