--- In AsburyPark@yahoogroups.com, "bluebishop82"
<[EMAIL PROTECTED]> wrote:
> I'm trying to figure this stuff out for myself.
PILOT says it all, which again is an acronym (payment in lieu of
taxes), and I guess some use it too freely to suggest when full
taxes are not being paid. Maybe NJ, but in NY, PILOT is always used
when the property itself is fully exempt from taxation (i.e.
government-owned). For instance, let's say AP kept ownership of the
waterfront property itself but leased it to the developers for 99
years (Times Square, Battery Park City, etc.). 9As an aside, I am
unsure about NJ law but under NY law condominiums cannot be built on
leased land, except under special legislation ala Battery Park
City.) The property would be 100% exempt from taxes because the city
owns it. However, AP wants to get paid for taxes otherwise due so it
works out a PILOT. Whether that PILOT reflects what full taxes would
be or something less, is irrelevant. Simply because the property IS
NOT SUBJECT TO TAXES makes whatever the payments AP receives PILOT
payments. PILOT has nothing to do with exemptions or abatements,
however, more often than not, PILOTs wind up being less than full
taxation (if not exempt). That was exactly Guiliani's problem with
the WTC before 9/11 because its PILOTs were much less than what full
taxes would have been (the property was owned by PANYNJ until a few
months before 9/11.
I guess I am being a purist. Again, officially, an abatement is a
dollar amount that one can directly deduct from their tax bill. An
exemption is a dollar amount which reduces the assessed value, which
in turn effectively reduces the tax bill. To finally answer your
question, it is not clear what LB is using. If I use what AP is
doing it is not an exemption or abatement. They simply use formulas
to calculate something less than full taxes. Taking a percentage
(35% in AP's case) and applying it to the assessment is not a true
abatement in the sense of the word. To me it is more of an
exemption. It is certainly not a PILOT (although I think the
underlying law calls it that), because the property is subject to
taxes.
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