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Concord NY IDA - Proposed Tax Abatement Policy
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The Town of Concord Industrial Development Agency and the other IDA’s in Erie County are in the process of adopting a tiered real property tax abatement policy which provides greater real property tax abatement to entities that meet certain criteria. It is anticipated that this policy will be adopted shortly and will replace the current real property tax abatement policy.
I. Exemption from Real Property Taxes: Payment in Lieu of Taxes
The IDAs maintain a policy for the provision of real property tax exemptions with a corresponding Payment In Lieu Of Tax Agreement (“PILOT Agreement”) to provide abatements for qualified projects. Each project receiving an abatement from real property tax will be subject to a PILOT Agreement in a for acceptable to the IDA.
Typically, a PILOT Agreement will require the developer (and its successors) to make payments to a municipality and/or school district in accordance with a graduated scale over a certain period of time based upon a percentage of the taxes that would otherwise be due on the value-added portion of the tax assessment. The real property tax abatement for each project classification applies only to the assessed value added by construction or renovation of the project. Typically there is no real property tax abatement on the pre-improved assessed value of the real property. Such PILOT Agreement will also require payment of any and all special district assessments.
The schedule used to calculate PILOT payments, and the amount of such payments, is not set forth in stature. PILOT payments must be made in accordance with PILOT payment schedules included with this Policy. Any deviation by an IDA from such established PILOT
Payment policy will be made only with the specific approval of the IDA’s members after giving consideration to the Policy and those factors described in the New York State General Municipal Law Section 874(4)(a). The IDA shall notify the affected local taxing jurisdictions of the proposed deviation from such policy and the reasons therefore. In addition to notifying the affected tax jurisdictions, the IDA shall provide written notice to all other IDAs of Erie County of the proposed deviation and the reason for the proposed deviation. Each other IDA shall be invited to submit written comments to the IDA proposing to deviate which comments shall be considered by the IDA proposing to deviate.
Based upon the comments received from the affected tax jurisdictions and other IDAs, the IDA shall make its decision and provide a written explanation as to its decision.
The Countywide IDA PILOT Policy provides tiered real property tax abatement schedules or categories of real property tax abatement schedules to incentivize certain investments over others. In this manner, projects that meet all or some of the region’s planning and economic development goal criteria will be rewarded with a more beneficial real property tax abatement schedule in comparison to those projects that meet less of the region’s planning and economic goal criteria. To meet this goal, a three tiered PILOT incentives schedule will be utilized.
Consideration of the following “PILOT Tier Criteria” will be utilized in analyzing and selecting the appropriate tiered PILOT schedule to be utilized for each particular project. Note this list is not exhaustive and may be amended from time to time.
1. Employment - project/companies will be rated based upon total payroll, of existing jobs and jobs to be created/retained.
2. Out of Region Sales - projects/companies will be rated based upon the percentage of
sales that are outside of the region.
3. In Region Purchases - projects/companies will be compared with the industry
averages.
4. Capital Investment - projects/companies will be rated using a cost benefit analysis
model such as IMPLAN.
5. Cluster/Regionally Strategic Industry- projects/companies within the identified
cluster or regionally strategic industry.
6. Framework For Regional Growth Compliance - project/companies will be evaluated
for compliance with regional planning objectives.
7. Brownfield site- whether the project is located within a brownfield site.
8. Other – projects/companies that:
· Are locally owned
· Utilize green technologies
· Have substantial professional development/lifetime learning programs
Unless otherwise agreed be the affected taxing jurisdictions, such PILOT Agreement payments shall be allocated among the affected taxing jurisdictions in proportion to the amount of real property tax and other taxes which would have been received by each affected taxing jurisdiction had the project not been tax exempt due to the status of the IDA involved in the project.
Pursuant to Section 874 of the New York General Municipal Law and Section 412-a of the Real Property Tax Law, no real estate tax exemption with respect to a particular project shall be effective until and Exemption From is filed with the assessor of each county, city, town, village and school district in which such project is located (each, a “Taxing Jurisdiction”). Once an exemption form with respect to a particular project is filed with a particular Taxing Jurisdiction, the real property tax exemption for such project does not take effect until (1) a tax status date for such Taxing Jurisdiction occurs subsequent to such filing. (2) an assessment roll for such Taxing Jurisdiction is finalized subsequent to such tax date, (3) such assessment roll becomes the basis for the preparation of a tax roll for such Taxing Jurisdiction, and (4) the tax year to which such tax roll relates commences.
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