NEW YORK is considering awarding local taxing districts broader authority to waive property taxes on power plants and to enter instead into so-called PILOT agreements.
“PILOT” stands for “payment in lieu of taxes.”The power plant owner would negotiate how much to pay in place of normal property taxes. Bills granting this authority are awaiting committee action in both houses of the New York legislature. Property taxes would be waived not only on the power plant, but also on the site and intertie with the grid. However, the waiver would not extend to transmission lines. Under a PILOT agreement, the taxing district collects annually the amount specified in the agreement rather than the amount annually determined based on the market value of the facility. Advocates of the bills say this will reduce the volatility in property taxes collected from power plants whose values may fluctuate greatly from year to year