Requires businesses that make payments in lieu of taxes to provide local governments and school districts with notice of their intention to file for a change in assessment.
Ayes (62): Adams, Addabbo, Avella, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Excused (1): Ball
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 requires businesses that make payments in lieu of taxes (PILOTs) to provide local governments and school districts with notice of their intention to change assessment.
SUMMARY OF PROVISIONS: The real property tax law is amended by adding a new section 561 to require businesses that make payments in lieu of taxes (PILOTS) to provide local governments and school districts with notice of their intention to change assessment.
Such notification must be made in writing and must be made at least thirty days prior to such filing for change of assessment.
JUSTIFICATION: Many businesses have been enticed to areas through a development program known as PILOT, payment in lieu of taxes. The program exempts certain businesses from property taxes in exchange for payments to the county, towns and school districts where they are located. Some PILOT agreements 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.
A successful challenge would create a substantial reduction in revenue to a locality and school district that relies on PILOT payments. The potential impact to a school district or locality could be devastating. Localities and school districts should be given the courtesy of previous notice that the business is filing an assessment challenge. Notification would allow for planning and budgeting decisions to be made that would reflect a possible reduction in PILOT payments.
LEGISLATIVE HISTORY: Passed Senate 2007-2008. S.602 of 2009/10. Passed Senate 2011-12 (S.950).
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 1526 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government 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: Section 1. The real property tax law is amended by adding a new section 561 to read as follows: S 561. PAYMENTS IN LIEU OF TAXES; CHANGE OF ASSESSMENT; NOTICE. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY PERSON, FIRM, PARTNER- SHIP, CORPORATION, LIMITED LIABILITY COMPANY OR ANY OTHER BUSINESS ENTI- TY WHICH MAKES PAYMENTS IN LIEU OF TAXES TO ANY COUNTY, TOWN, VILLAGE, CITY OR SCHOOL DISTRICT, SHALL, PRIOR TO FILING WITH SUCH COUNTY, TOWN, VILLAGE, CITY OR SCHOOL DISTRICT FOR A CHANGE OF ASSESSMENT, NOTIFY SUCH COUNTY, TOWN, VILLAGE, CITY OR SCHOOL DISTRICT OF SUCH BUSINESS ENTITY'S INTENTION TO FILE FOR SUCH CHANGE. SUCH NOTIFICATION OF INTENTION SHALL BE MADE IN WRITING AND SHALL BE MADE AT LEAST THIRTY DAYS PRIOR TO SUCH FILING FOR CHANGE OF ASSESSMENT. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04508-01-3