On Monday, the Senate Budget Committee amended and released S-1701, which is opposed by the League. This bill would require an application for a long term property tax exemption (PILOT) to include a cost-benefit analysis and for the municipality to produce an independent cost-benefit analysis to be submitted along with the application to the municipal governing body before it can decide on the exemption. Further, the bill also requires a municipal governing body to include specific findings in its resolution approving or disapproving of a project for which a long term tax exemption is sought. Those specific findings have to address the net impact of the project on the finances of the affected local governments, including the municipality, county, and school district.
In addition, a highly problematic amendment would require the annual service charge to be distributed in proportion to the amount of revenue received by the county, municipality, and school district from the property tax.
The Senate bill now stands at 2nd reading in the Senate. The Assembly companion is referenced to the Assembly State Government Committee.
Michael F. Cerra, Assistant Executive Director, firstname.lastname@example.org, 609-695-3481, Ext. 120.
Lori Buckelew, Senior Legislative Analyst, email@example.com, 609-695-3481, Ext. 112.