BILL NUMBER: S4174

SPONSOR: GAUGHRAN
 
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 (PILOTS) to provide
local governments and school districts their intention to change assess-
ment.

 
SUMMARY OF PROVISIONS:

Section 1: 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 their assessment. Such notification must be made in
writing and must be made at least thirty days prior to such filing for
change of assessment.
              

Section 2: Establishes the Effective Date.

 
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:

S1293/A.8859 of 2017/18;
S.425 of 2015/16.

 
FISCAL IMPLICATIONS:

None to the State. This change in the law would help localities and
school districts prepare financial plans.

 
EFFECTIVE DATE:
This act shall take effect immediately.