Relates to payments in lieu of taxes

2025 Regular Session Introduced by Jeremy Cooney and 7 co-sponsors

Governs payments in lieu of taxes (PILOT), requiring certain tax-exempt entities to pay municipalities to offset revenue lost from exemptions, stabilizing local budgets.

PRINT NUMBER 3245A

Overview

Bill Number: S 3245

Title: Relates to payments in lieu of taxes (PILOT)

Status: Referred to Local Government (and later actions listed under Veterans’ Affairs)

Introduced: November 20, 2025

Classification: bill

Note: The provided materials do not include the actual bill text. The summary below reflects the bill’s stated title, the available legislative actions, sponsors, and related bills. Specific operative provisions, definitions, and fiscal impacts are not enumerated in the supplied information.

Legislative Actions (highlights)

2025-11-20: Read twice and referred to the Committee on Veterans' Affairs.

2025-11-20: Introduced in Senate.

2025-01-24: Referred to Local Government (listed twice in the record).

Sponsors listed for S 3245:

Primary: Jeremy Cooney
Cosponsors: Jack M. Martins, Rachel May, Steve Rhoads, Lea Webb, Thomas F. O'Mara

Related/previous-session bills: S 8480, A 7091, S 8204, S 1045

Purpose and Context (as inferred from the title)

The bill relates to “payments in lieu of taxes” (PILOT), which typically involve agreements under which entities (often entities with tax-exempt status or special classifications) make payments to local governments in lieu of unpaid property taxes.

PILOT arrangements commonly address revenue replacement for municipalities and local services funded by properties that receive tax exemptions or special status.

Key Provisions (note on the available information)

The exact substantive provisions, calculation methods, eligibility, payment schedules, enforcement mechanisms, reporting requirements, and fiscal implications are not provided in the materials you shared.

Based on standard PILOT law practice, such bills may address:

Definitions of eligible properties or entities
How PILOT payments are calculated (flat rate, percent of value, or formula)
Schedules for payment timing and duration
Allocation or use of PILOT revenues by local governments
Procedures for entering, modifying, or terminating PILOT agreements
Compliance, oversight, and reporting requirements

Readers should consult the full text of S 3245 for precise language and obligations.

Potential Impact (without the full text)

Local Governments: Could receive structured PILOT payments to offset revenue losses from tax exemptions and support local services.

Property Owners/Applicants: Entities subject to PILOT agreements may see defined payment obligations and terms.

Budgeting and Finance: Municipal and county budgets may be affected by new revenue streams or obligations depending on the bill’s specifics.

Administrative Impact: May introduce new processes for calculating, collecting, and auditing PILOT payments.

Next Steps for Interested Readers

Obtain the full bill text and any fiscal notes from the official legislative portal.

Review committee reports from Local Government and any subsequent committees (e.g., Veterans’ Affairs) for amendments and clarifications.

Monitor for companion bills (S 8480, A 7091, S 8204, S 1045) for cross-bill comparisons and potential compromises.

If you’d like, I can refine this summary once the actual bill text is available and provide a detailed section-by-section breakdown.

Bill