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A07211 Summary:

BILL NOA07211A
 
SAME ASSAME AS S04156-A
 
SPONSORPaulin
 
COSPNSRGalef, Stirpe
 
MLTSPNSR
 
Add §561, RPT L
 
Relates to changes in assessment for businesses that make payments in lieu of taxes; establishes that any reduction in school taxes shall not take effect until the following taxable status year.
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A07211 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7211A
 
SPONSOR: Paulin
  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 ensures that adjustments to payments in lieu of taxes (PILOTs) based on a change of assessment do not affect school districts in the middle of their fiscal year. Instead, the change of assessment will take effect once the school's fiscal year has ended.   SUMMARY OF PROVISIONS: The real property tax law is amended by adding a new section 561 to require that for any payment in lieu of taxes agreement entered into on or after the effective date of this section, when the assessment of a property making payments in lieu of taxes is challenged through the grievance process, any reduction in payments in lieu of taxes made to a school district resulting from such challenge shall not take effect until the following taxable status year.   JUSTIFICATION: Businesses can be enticed to areas through the development incentive know as payment in lieu of taxes (PILOTs). The program reduces property taxes for certain businesses in exchange for payments to the county, towns and/or school districts where they are located. Some PILOT agree- ments 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. Successful assessment challenges potentially create a substantial reduction in revenue to a school district. Given that school budgets are largely fixed at the beginning of the school district's fiscal year, when an assessment-based PILOT is challenged, it should not impact a school district if it occurs in the middle of their fiscal year. Any reduction that is awarded through a grievance process affecting school taxes should not take effect until the following fiscal year.   LEGISLATIVE HISTORY: New bill   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect on the sixtieth day after it shall have become a law.
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