The IDA can provide eligible projects Payment in Lieu of Tax Agreements (PILOT) in accordance with its Uniform Tax Exemption Policy. The IDA’s current policy states that it will provide PILOT’s modeled after Section 485-b of NYS’s Real Property Tax Law. Section 485-b states that a company can receive a 50% exemption on its assessed valuation in year 1.
The exemption then decreases 5% a year for 10 years. After ten (10) years, the company would make a PILOT payment equivalent to 100% of the amount it would be paying in real property taxes if it owned the property.
Once the Lease and PILOT Agreement the IDA has with a company expires, the property returns to the tax rolls. At that time, the company starts making “property tax payments” to local taxing jurisdictions.
The IDA can provide eligible projects an exemption from New York State and Fulton County sales taxes on eligible construction materials and equipment for a project. At present, the NYS and Fulton County sales tax totals 8%. The exemption is generally limited to the construction, reconstruction or installation period and cannot cover ongoing operational costs.