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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A218
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:
A.7211-A of 2017, referred to ways and means, passed assembly in 2018.
Same as S.4156-A of 2017 and 2018, committed to rules.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
218
2019-2020 Regular Sessions
IN ASSEMBLY(Prefiled)
January 9, 2019
___________
Introduced by M. of A. PAULIN, GALEF, STIRPE -- read once and referred
to the Committee on Real Property Taxation
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 Assem-bly, do enact as follows:
1 Section 1. The real property tax law is amended by adding a new
2 section 561 to read as follows:
3 § 561. Payments in lieu of taxes; change of assessment; effective
4 date. Notwithstanding any other provision of law, for any payment in
5 lieu of taxes agreement entered into on or after the effective date of
6 this section, when the assessment of a property making payments in lieu
7 of taxes is challenged through the grievance process, any reduction in
8 payments in lieu of taxes made to a school district resulting from such
9 challenge shall not take effect until the following taxable status year.
10 § 2. This act shall take effect on the sixtieth day after it shall
11 have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01789-01-9
