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Bill

S 10269

Relates to waiving school taxes by a town, city, or county industrial development agency

2025 Regular Session Introduced by James Skoufis

The bill bans town, city, or county IDAs from granting PILOTs or tax waivers that reduce school district tax revenue.

REFERRED TO LOCAL GOVERNMENT
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Bill Summary · S 10269

Purpose and intent

  • The bill proposes a new provision in the General Municipal Law to restrict industrial development agencies (IDAs) at the town, city, or county level from waiving taxes or entering into payment in lieu of taxes (PILOT) agreements for taxes that would be received by a school district.
  • In short, it prevents local IDAs from granting tax concessions that reduce school district tax receipts.

Key provisions

  • New section added: § 889 (Special provisions applicable to town, city, or county agency).
  • Prohibition: A town, city, or county IDA may not enter into agreements requiring payment in lieu of taxes, nor waive any other tax, if the tax would be received by a school district.
  • Effective date: The act takes effect immediately upon enactment.

Affected entities and implications

  • Affected entities: Town, city, or county IDAs within New York State.
  • Impact on school districts: School districts would retain tax revenues that might otherwise be reduced by PILOT agreements or tax waivers administered by local IDAs.
  • Impact on developers/investors: Potential limitation on the use of PILOTs to attract development projects if those PILOTs would divert tax revenue from school districts.
  • Local governments: IDAs would need to structure incentives in ways that do not deprive school districts of tax revenue, or rely on alternative funding mechanisms not involving school tax streams.

Procedural and timeline aspects

  • Introduction and referral: Introduced in the Senate, May 11, 2026, and referred to the Committee on Local Government.
  • Legislative status: Pending committee review; sponsor listed is Sen. Skoufis (co-sponsor: James Skoufis).
  • Effective date: Immediate upon enactment (no phase-in period).

Summary of impact

  • The bill narrows the ability of local IDAs to use tax abatements or PILOTs that reduce school district tax collections.
  • It reinforces school district tax preservation as a priority in locally administered economic development incentives.
  • It could require IDAs to reassess current or proposed agreements to ensure school tax revenues are not diminished, possibly affecting project economics and incentive structures.

Compiled from official sources — confirm details with the bill’s official record.

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