Senate bill · S3245 (2025-26)
Relates to payments in lieu of taxes
New York State Senate
Same as A10860, the matching bill in the Assembly.
Summary
Relates to payments in lieu of taxes; provides that the tax base growth factor or quantity change factor includes the change in assessed value for each property on the exempt side of the tax rolls under a payment in lieu of tax agreement; allows a local government or school district to elect to include the equivalent taxable value of property subject to a payment in lieu of taxes agreement in the calculation of its quantity change factor.
Summary from NY Open Legislation. How we handle summaries
Amends the General Municipal Law.
From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Nov 1, 2026. About our data
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Purpose, from the sponsor's memo
This bill amends the general municipal law and education law to provide that the tax base growth factor (or quantity change factor) includes the value of new assessment exempted under a Payment In Lieu of Taxes agree- ment being added to a community. Section 1. amends the calculation of the quantity change factor for local governments to provide that, where a local government has made an election under new paragraph (e), the commissioner of taxation and finance shall include the equivalent taxable value of PILOT property in lieu of the full assessed value of such property. Section 2. permits, but does not require, a local government to include an "equivalent taxable value" for PILOT properties when calculating the quantity change factor under the property tax cap. The equivalent taxa- ble value is calculated by dividing the portion of the PILOT payment attributable to real property taxation by the applicable tax rate or rates for the levy year, as determined by the commissioner. The bill expressly prohibits inclusion of the full assessed value of PILOT prop- erties where this option is elected. This section also provides that the election must be made by local law or resolution following a public hearing, shall remain in effect unless repealed, and shall be imple- mented pursuant to regulations promulgated by the commissioner, includ- ing rules for allocating PILOT payments among affected taxing jurisdic- tions and ensuring uniform application. Section 3. amends the calculation of the quantity change factor for school districts to provide that, where a school district has made an election under new paragraph (d) of subdivision two-a of section 2023-a of the education law, the commissioner shall include the equivalent taxable value of PILOT property in lieu of the full assessed value of such property. Section 4. permits, but does not require, a school district to include an "equivalent taxable value" for PILOT properties when calculating the quantity change factor under the property tax cap, consistent with the local government methodology in General Municipal Law section 3-c. The election must be made by resolution of the board of education following a public meeting and shall remain in effect unless rescinded by subse- quent resolution. The section further provides that in no event shall the full assessed value of property subject to a PILOT agreement be included. It also states that nothing in the act shall be construed to alter, repeal, or modify the allowable levy growth factor, override requirements, or the inclusion and subtraction of payments in lieu of taxes as otherwise required by law. Section 5. Sets forth the effective date.
Filed with the bill. Read it on nysenate.gov (opens in a new tab)
Where it stands
Out of committee and scheduled for a vote by the full chamber.
- Introduced
- In committee
- Up for a vote
- Passed one chamber
- Passed
- Enacted
Committee
Local Government · New York State Senate
Also referred to Local Governments · New York State Assembly.
Cosponsors
Alexis Weik, Charles Lavine and 12 more on Agora
Showing the cosponsors who are on Agora, A to Z. The official record may list more.
Read on NY Senate (opens in a new tab)- Democratic8
- Republican6
This bill has cosponsors from more than one party.
Shown in neutral colors by design; Agora is non-partisan.
- Alexis Weik
- Charles Lavine
- Gabriella Romero
- Jack M. Martins
- Judy Griffin
- Lea Webb
- MaryJane Shimsky
- Pete Harckham
- Philip Palmesano
- Rachel May
- Stephen Hawley
- Steve Rhoads
Show the full list (14 names)Show fewer cosponsors
The sponsor's argument
Why Jeremy Cooney says this is needed
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 considers the payment of PILOTs in a comprehensive 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 residents 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 the community. This measure is not a tax increase, it recognizes growth to be factored into the 2% cap which provides school districts and municipalities more flexibility to stay under the cap.
This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.
Full history
- May 18, 2026
Reported out of committee
REPORTED REFERRED TO WAYS AND MEANS
NY Assembly
- Apr 8, 2026
Referred to committee
REFERRED TO LOCAL GOVERNMENTS
NY Assembly
- Mar 23, 2026
Amend and Recommit to Local Government
AMEND AND RECOMMIT TO LOCAL GOVERNMENT
NY Senate
- Jan 7, 2026
Referred to committee
REFERRED TO LOCAL GOVERNMENT
NY Senate
- Jan 24, 2025
Referred to committee
REFERRED TO LOCAL GOVERNMENT
NY Senate