At the end of 2022, legislation was passed in New York requiring a 45-day notice prior to filing a tax assessment challenge for any properties which are subject to an agreement to make Payments in Lieu of Taxes (PILOTs). Industrial Development Agencies often provide incentives in the form of exemptions from real property taxes in exchange for an agreement to pay PILOTs, which are then distributed proportionally among the affected taxing jurisdictions.  PILOT payments are generally less than what the taxes would have been.

For owners of properties with set PILOT payments, there is generally no reason to challenge the assessment. However, some PILOT payment amounts are based on the property’s assessment (“assessed value”), which can change each year.  In those instances, it is often worthwhile to challenge such an assessment.

We are advising all property owners with IDA PILOTs, who are considering challenging their assessments, to consult with a Tax Certiorari attorney well in advance of the filing deadline to ensure compliance with these requirements.

This article was a joint effort by our Industrial Development Agency (IDA) Benefits & Government Incentives and Tax Certiorari practice group Partners John P. Gordon and Nicole S. Forchelli. These practice groups work together to reduce our clients’ real property tax burden.