BILL NUMBER:  S425

 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 :

S.1526 of 2013/14.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.