What's happening
This bill prohibits town, city, or county agencies from waiving or reducing school district taxes through payment-in-lieu-of-taxes agreements.
Why it matters
Ensures school districts receive full tax revenue. By prohibiting towns, cities, and counties from waiving or reducing school district taxes through payment-in-lieu-of-taxes (PILOT) agreements, the bill directly protects funding streams critical to local public schools.
Limits local economic incentives. The bill restricts a common tool (PILOT agreements) used by local governments to attract or retain businesses, which could change how economic development deals are structured and potentially make some projects less appealing to investors or companies.
Shifts negotiation power to school districts. School districts would no longer be sidelined in tax negotiations, ensuring they have more stable funding and a greater say over any potential tax relief offered to businesses operating in their jurisdictions.
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Who cares
Town, city and county industrial development agencies
The bill would prohibit them from entering into payment-in-lieu-of-taxes agreements or waiving other taxes where the tax would go to a school district.
School districts
The bill would prevent local industrial development agencies from waiving taxes that school districts would otherwise receive.
Businesses seeking industrial development agency tax incentives
The bill would limit available incentives by barring agreements or waivers covering taxes payable to school districts.
Headline styles
Protect School Tax Revenue
Plain English, a few words. Used as the page title.
Sponsors
History
- 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.
Stop School Tax Waivers
In Assembly Committee · Education · Sponsor Harry B. Bronson
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
132
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sens. S. RYAN, HINCHEY, JACKSON, KRUEGER, SALAZAR, SKOUFIS -- 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, in relation to waiving school taxes by a town, city, or county industrial development agency
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general municipal law is amended by adding a new section 889 to read as follows:
§ 889. Special provisions applicable to town, city, or county agency. A town, city, or county agency shall not enter into agreements requiring payment in lieu of taxes or waive any other tax where such tax would be received by a school district.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S LBD00416-01-5
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, in relation to waiving school taxes by a town, city, or county industrial development agency
Purpose
This purpose of this bill is to prevent town, city, or county IDAs from waiving taxes that would otherwise go to a school district.
Summary of provisions
Section 1 creates a new section 889 of the General Municipal Law that dictates that town, city, or county industrial development agencies may not waive any taxes or enter into an agreement for payment in lieu of taxes if such taxes would otherwise be received by the school district.
Section 2 is the effective date.
Justification
The stated purpose of industrial development agencies, or IDAs, is to incentivize economic development by attracting businesses and creating new jobs. The incentives offered by IDAs often include the waiving of all or some state or local taxes, including those taxes that would have otherwise been received by the local school district or districts. IDAs have been around since 1969, and since that time, they have offered billions of dollars of incentives to large multi-national corporations. The only data the state receives regarding job creation and economic benefits as a result of IDA activity is self-reported by the corpo- rations, and IDAs' exact effectiveness in this area is unknown.
The past few years have been very challenging for students and educators alike. New York State is experiencing a teacher shortage, and many schools lack the resources to attract and retain educators. State offi- cials have estimated that NYS will need 180,000 new teachers in the next decade.
This bill proposes a simple means of increasing funding to school districts. While the impact of IDAs remains largely unknown, we cannot overstate the importance of education and the impact of good teachers and a strong school district. Preventing IDAs from waiving school taxes will have a massive impact on our state's children, and the amount of money is negligible to the large, multi-national corporations that bene- fit from agreements with IDAs.
Legislative history
2022: S8395/A10069
2023-2024: S89/A351
Fiscal implications
None to the State.
Local fiscal implications
Generates additional funding for school districts.
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.