Provides that prior to the approval of any application for a payment in lieu of taxes by an industrial development agency, the agreement shall obtain approval, by three-fifths majority, of all affected tax jurisdictions.
TITLE OF BILL: An act to amend the general municipal law, in relation to agreements requiring payments in lieu of taxes entered into by industrial development agencies
PURPOSE: To ensure that IDA payment in lieu of taxes (PILOT) agreement are approved by all affected tax jurisdictions before going into effect.
SUMMARY OF PROVISIONS:
Section one amends subdivision 15 of section 858 of the general municipal law to require that an IDA payment in lieu of taxes (PILOT) agreement must be approved by all affected tax jurisdictions before going into effect.
Section two sets the enacting date.
JUSTIFICATION: Industrial Development Agencies have statutory authority to grant tax exemptions to businesses in order to foster economic development. However, many IDAs cover large geographic areas, such as entire counties. These IDAs encompass numerous levels of government, and their actions to grant tax exemptions effect all other governments in which the project will be located in. This legislation will allow all affected tax jurisdictions to have a voice when an IDA is granting a PILOT that can adversely affect that localities tax base. This proposal will create more accountability for PILOTs and foster an environment of collaborative economic development.
LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 7557 IN SENATE May 15, 2014 ___________Introduced by Sen. MARTINS -- 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 agreements requiring payments in lieu of taxes entered into by industrial devel- opment agencies THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 15 of section 858 of the general municipal law, as added by chapter 356 of the laws of 1993, is amended to read as follows: (15) To enter into agreements requiring payments in lieu of taxes. Such agreements shall be in writing and in addition to other terms shall contain: the amount due annually to each affected tax jurisdiction (or a formula by which the amount due can be calculated), the name and address of the person, office or agency to which payment shall be delivered, the date on which payment shall be made, and the date on which payment shall be considered delinquent if not paid. Unless otherwise agreed by the affected tax jurisdictions, any such agreement shall provide that payments in lieu of taxes shall be allocated among affected tax juris- dictions in proportion to the amount of real property tax and other taxes which would have been received by each affected tax jurisdiction had the project not been tax exempt due to the status of the agency involved in the project. A copy of any such agreement shall be delivered to each affected tax jurisdiction within fifteen days of signing the agreement. In the absence of any such written agreement, payments in lieu of taxes made by an agency shall be allocated in the same proportions as they had been prior to January first, nineteen hundred ninety-three for so long as the agency's activities render a project non-taxable by affected tax jurisdictions. PRIOR TO THE APPROVAL OF ANY APPLICATION FOR AN AGREEMENT FOR PAYMENTS IN LIEU OF TAXES, THE AGREE- MENT SHALL OBTAIN THE APPROVAL OF ALL AFFECTED TAX JURISDICTIONS; S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15080-02-4