I'm trying to figure this stuff out for myself. Take a look at this
quote from the article:
"In the first full tax year after completion of the Project, no pay
ment in lieu of taxes shall be required; in the second tax year, 20
percent of taxes otherwise due shall be paid by the Redeveloper; in
the third tax year, 40 percent of taxes otherwise due shall be paid
by the Redeveloper; in the fourth tax year, 60 percent of taxes
otherwise due shall be paid by the Redeveloper; in the fifth tax
year, 80 percent of taxes otherwise due shall be paid by the
redeveloper."
Since they are talking about "percentage of taxes otherwise due"
that tips us off that isn't a PILOT because PILOTS are not connected
to the actual taxes owed (so the percentatge is the tip off that it
isn't a PILOT). Am I right on that?
If the tax payments are a "percentage of taxes otherwise due"
doesn't that suggest an abatement (the amount "otherwise due" being
the normal tax rate and assessment, therefore excluding exemption
because they aren't declaring part of the property exempt from
taxation). Am I right there?
Hope I score well! Isn't really my area.
--- In AsburyPark@yahoogroups.com, "dfsavgny" <[EMAIL PROTECTED]> wrote:
> --- In AsburyPark@yahoogroups.com, "bluebishop82"
> <[EMAIL PROTECTED]> wrote:
> > Dan,
> >
> > Good point. That article I posted seemed to use all three
> > interchangeably. Can you tell by the article which one Long
> Branch
> > is? Could it be a combination of all 3?
> >
> I suspect that it is an EXEMPTION and the misnomer of PILOT is
used
> erroneously. I think the article uses ABATEMENT incorrectly
because
> the taxes are effectively being abated, or lessened. What LB is
> using sounds like the NYC programs, for instance, ICIP (Industrial
> and Commercial Incentive Program). There are different terms, but
> generally, the assessed value of the new improvements are 100%
> Exempt for a period and then the EXEMPTION declines by 20% per
year.
>
> While PILOT is thrown around to mean than someone is paying less
> than conventional taxes, that is not its true meaning and in fact,
> someone can pay PILOT that can be equal or greater than
conventional
> taxes (in theory but not practice). Again, PILOT is more often
used
> to denote the payments made in lieu of taxes for a property that
is
> not subject (100% exempt) from taxes, typically owned by the
taxing
> authority or other governmental entity.
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