S 3245 New York Senate · 2025 Regular Session

Relates to payments in lieu of taxes

This bill (S 3245) updates how New York local governments and school districts calculate payments in lieu of taxes (PILT) for tax-exempt properties. It requires the Commissioner of Taxation to compute an annual "quantity change factor" showing percentage shifts in taxable property values between specific assessment rolls. This factor must include changes in value for properties under PILT agreements, ensuring these adjustments directly impact local tax revenue calculations. The bill affects municipalities and school districts receiving PILT payments by standardizing how property value changes are factored into their funding.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 24, 2025 Last action Mar 23, 2026

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What changed between versions

S3245 → S3245A · 5 edits

MODERATE

This bill amends New York State laws to clarify how 'payments in lieu of taxes' (PILOTs) are calculated for school districts. It allows local governments and school districts to elect an option where the tax value of PILOTs is included in growth calculations, rather than just the actual payment amount, ensuring tax revenue growth is accurately reflected. The bill also establishes specific procedures for making this election and confirms that the full assessed value of the property is never included in these calculations.

Scope change

The bill expands the scope by adding new elective options for both local governments and school districts to adjust how PILOTs are treated in tax growth formulas, whereas the previous version only addressed the inclusion of PILOT changes.

ELIGIBILITY

Added a new option for local governments to elect including the equivalent taxable value of PILOTs in quantity change factor calculations.

Added a new option for school districts to elect including the equivalent taxable value of PILOTs in their quantity change factor calculations.

REQUIREMENT

Established that these new options must be adopted through a local law or resolution following a public hearing or meeting.

DEFINITION

Clarified that the 'equivalent taxable value' is calculated by dividing the PILOT amount by the applicable tax rate, and explicitly stated that the full assessed value of the property is never included.

TIMELINE

Changed the effective date from one hundred twentieth days after enactment to immediately, with rules to be implemented by the effective date.

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Full legislative history

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Key actions

Committee

Amendments

Mar 23, 2026

Upper · Passed

PRINT NUMBER 3245A

upper

Mar 23, 2026

Upper · Passed

AMEND AND RECOMMIT TO LOCAL GOVERNMENT

upper

Jan 7, 2026

Committee

REFERRED TO LOCAL GOVERNMENT

upper

Jan 24, 2025

Committee

REFERRED TO LOCAL GOVERNMENT

upper

1 primary · 7 co-sponsors