NY State Senate Bill 2025-S3245

Current 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 24, 2025	referred to local government

co-Sponsors

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2025-S3245 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §3-c, Gen Muni L; amd §2023-a, Ed L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8480
2023-2024: S1045, S8204

2025-S3245 (ACTIVE) - Summary

Relates to payments in lieu of taxes.

2025-S3245 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3245

SPONSOR: COONEY
 
TITLE OF BILL:

An act to amend the general municipal law and the education law, in
relation to payments in lieu of taxes

 
PURPOSE:

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 agree-
ment being added to a community.

 
SUMMARY OF SPECIFIC 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 taxa-
tion 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 current tax cap law ignores increases to the tax base of a community
if that increase in tax base occurs under a PILOT agreement. The mechan-
ics of the law takes into account the payment of PILOTs in a comprehen-
sive 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. The intent of Tax Base Growth Factor is to
ensure that as a community grows, so too should its revenues to recog-
nize that the community is providing services to more residences and
businesses. By not recognizing PILOT-exempted projects, the law does not
properly capture this contradiction and a community is restricted in
providing resources in proportion to service demand increases. This
issue can be resolved by amending the law to have the quantity change
factor include the value of new assessment exempted under a PILOT agree-
ment being added to a community. This measure is not a tax increase,
instead it recognizes growth to be factored into the 2% cap which
provides school districts and municipalities more flexibility to stay
under the cap.

 
LEGISLATIVE HISTORY:

A.8038 2013- Referred to local governments
A3611 2015/16 - Referred to local governments

A.1481A 2017 - Veto message 208

S.8480 2022 - Referred to local governments

S.1045 2023- vetoed memo 110

S. 8204 2023/24

 
FISCAL IMPLICATIONS:

None

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

2025-S3245 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3245
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2025
                                ___________
 
 Introduced  by  Sens. COONEY, MARTINS, MAY, O'MARA, RHOADS, WEBB -- 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 amended  by  section  2  of
 subpart  C  of  part  C of chapter 20 of the laws of 2015, 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[. The commissioner of taxation and finance shall, as appropriate,
 promulgate  rules and regulations regarding the calculation of the quan-
 tity change factor which may adjust the calculation based on the  devel-
 opment  on  tax  exempt  land], AND SHALL 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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03251-01-5
 S. 3245                             2

   § 2. Paragraph b of subdivision 2-a of section 2023-a of the education
 law, as amended by section 3 of subpart C of part C of chapter 20 of the
 laws of 2015, 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[. The commissioner of taxation and finance shall, as appropriate,
 promulgate  rules and regulations regarding the calculation of the quan-
 tity change factor which may adjust the calculation based on the  devel-
 opment  on  tax  exempt  land], AND SHALL 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.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

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Senate Bill S3245

Sponsored By

Current Bill Status - In Senate Committee Local Government Committee

co-Sponsors

2025-S3245 (ACTIVE) - Details

2025-S3245 (ACTIVE) - Summary

2025-S3245 (ACTIVE) - Sponsor Memo

2025-S3245 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3245

Share this bill

Sponsored By

Jeremy Cooney

Current Bill Status - In Senate Committee Local Government Committee

co-Sponsors

Jack M. Martins

Rachel May

Thomas F. O'Mara

Steven D. Rhoads

2025-S3245 (ACTIVE) - Details

2025-S3245 (ACTIVE) - Summary

2025-S3245 (ACTIVE) - Sponsor Memo

2025-S3245 (ACTIVE) - Bill Text download pdf

Comments