Bill S3591-2013

Relates to payments in lieu of taxes

Relates to payments in lieu of taxes; improves how payments in lieu of taxes are collected.

Details

Actions

  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • Jun 11, 2013: referred to local governments
  • Jun 11, 2013: DELIVERED TO ASSEMBLY
  • Jun 11, 2013: PASSED SENATE
  • Jun 10, 2013: ORDERED TO THIRD READING CAL.1184
  • Jun 10, 2013: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Feb 7, 2013: REFERRED TO LOCAL GOVERNMENT

Meetings

Calendars

Votes

Memo

BILL NUMBER:S3591

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 agreement 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 taxation 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 counted 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 proportion to service demand increases These issues can be resolved by amending 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: 2012- S.7761

FISCAL IMPLICATION: None

EFFECTIVE DATE: This act shall take effect on the hundred twentieth day after it shall have become law.


Text

STATE OF NEW YORK ________________________________________________________________________ 3591 2013-2014 Regular Sessions IN SENATE February 7, 2013 ___________
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 ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (i) of paragraph (b) of subdivision 3 of section 3-c of the general municipal law, as added by section 1 of part A of chapter 97 of the laws of 2011, is amended to read as follows: (i) The commissioner of taxation and finance shall calculate a quanti- ty 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 commission- er 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 preced- ing the final assessment roll or rolls upon which taxes are to be levied AND 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. S 2. Paragraph b of subdivision 2-a of section 2023-a of the education law, as added by section 2 of part A of chapter 97 of the laws of 2011, is amended to read as follows: 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 commission- er 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 preced- ing the final assessment roll or rolls upon which taxes are to be levied AND 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. S 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 implementa- tion of this act on its effective date is authorized to be made on or before such effective date.

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