NY State Senate Bill 2019-S7963

Senate Bill S7963

2019-2020 Legislative Session

Relates to requiring certain notifications regarding PILOT agreements with industrial development agencies

download bill text pdf

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 04, 2020	referred to local government

2019-S7963 (ACTIVE) - Details

See Assembly Version of this Bill:: A10930
Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §858, Gen Muni L; amd §§1953 & 2306, Pub Auth L
Versions Introduced in 2021-2022 Legislative Session:: S4471, A7295

2019-S7963 (ACTIVE) - Summary

Requires notification of the expiration of a PILOT agreement to be delivered to the affected tax jurisdiction within two years of the expiration of such agreement or immediately upon early termination.

2019-S7963 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7963

SPONSOR: MARTINEZ
 
TITLE OF BILL:

An act to amend the general municipal law and the public authorities
law, in relation to certain notifications regarding agreements requiring
payments in lieu of taxes

 
PURPOSE:

This legislation will require industrial development agencies to notify
a taxing jurisdiction within two years of the expiration of a payment in
lieu of taxes agreement, or immediately upon the early termination of an
agreement

 
SUMMARY OF PROVISIONS:

Section 1. Amends Section 858 of the general municipal law requiring
IDAs to notify a taxing jurisdiction before the end of a PILOT agree-
ment.

Section 2. Amends Section 1953 of the public authorities law requiring
IDAs to notify a taxing jurisdiction before the end of a PILOT agree-
ment.

Section 3. Amends Section 2306 of the public authorities law requiring
IDAs to notify a taxing jurisdiction before the end of a PILOT agree-
ment.

Section 4. Effective Date

 
JUSTIFICATION:

Payments in Lieu of Taxes (PILOT) are often provided to taxing jurisdic-
tions to make up for the incentives provided to local businesses to grow
and expand in New York. These agreements are beneficial to the community
in order to support economic development while ensuring taxing jurisdic-
tions like school districts, are not without needed funding.

Often times, taxing jurisdictions rely upon PILOT agreements while
calculating their budget. The sudden termination or cessation of a PILOT
agreement, without the knowledge of the affected jurisdictions, can have
inadvertent negative effects on a taxing jurisdictions budget. This
advanced notification will clear up any confusion between the businesses
and taxing jurisdiction, and give taxing jurisdictions ample opportunity
to adequately budget for the nature and amount of funds to be received.

As industrial development agencies have the authority to enter into
these PILOT agreements, it is common sense to have the agency give
notification to the taxing jurisdiction upon the impending expiration of
such agreement when feasible. This legislation in no way prohibits or
limits the ability of IDAs to enter into PILOT agreements.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:
Minimal

 
EFFECTIVE DATE:
60 days after it shall have become law

2019-S7963 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7963
 
                             I N  S E N A T E
 
                               March 4, 2020
                                ___________
 
 Introduced  by Sen. MARTINEZ -- 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  public  authorities
   law, in relation to certain notifications regarding agreements requir-
   ing 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. 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. A NOTIFICATION OF THE EXPIRA-
 TION  OF SUCH AGREEMENT SHALL BE DELIVERED TO THE AFFECTED TAX JURISDIC-
 TION WITHIN TWO YEARS OF THE EXPIRATION OF SUCH AGREEMENT AND IMMEDIATE-
 LY UPON EARLY TERMINATION OF AN AGREEMENT;
   § 2. Subdivision 14 of section 1953 of the public authorities law,  as
 added by chapter 356 of the laws of 1993, is amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15524-03-0

 S. 7963                             2
 
   14. 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  authority
 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 authority's activities render a project
 non-taxable by affected tax jurisdictions.  A NOTIFICATION OF THE  EXPI-
 RATION  OF  SUCH AGREEMENT SHALL BE DELIVERED TO THE AFFECTED TAX JURIS-
 DICTION WITHIN TWO YEARS OF THE EXPIRATION OF SUCH AGREEMENT  AND  IMME-
 DIATELY UPON EARLY TERMINATION OF AN AGREEMENT;
   §  3. Subdivision 14 of section 2306 of the public authorities law, as
 added by chapter 356 of the laws of 1993, is amended to read as follows:
   14. 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 the 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 tax affected jurisdiction within fifteen  days  of  signing  the
 agreement.  In  the  absence  of any such written agreement, payments in
 lieu of taxes shall be allocated in the same  proportions  as  they  had
 been  prior  to January first, nineteen hundred ninety-three for so long
 as the authority's activities render a project non-taxable  by  affected
 tax  jurisdictions.  A  NOTIFICATION OF THE EXPIRATION OF SUCH AGREEMENT
 SHALL BE DELIVERED TO THE AFFECTED TAX JURISDICTION WITHIN TWO YEARS  OF
 THE  EXPIRATION OF SUCH AGREEMENT AND IMMEDIATELY UPON EARLY TERMINATION
 OF AN AGREEMENT;
   § 4. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.

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