Handling Nassau County 2015-2016 School Tax Levies/LIPA PILOTs: Filing Tax Cap Form for 2016-17 School Year

The 2015-2016 tax levies for some school districts in Nassau County were reduced in connection with corrections to the districts' assessments/tax rolls which exempted from taxation certain property owned by LIPA. In these instances, the first line of the 2016-2017 tax cap form (prior year levy: Tax Levy FYE 6/30/2016) should be the amount of tax that was actually levied. PILOTs receivable from LIPA associated with the exempt properties during the 2015-2016 fiscal year (see Public Authorities Law § 1020-q [1]) should be included on the fifth line: PILOTs receivable FYE 6/30/2016.

As we have previously advised local governments, when estimating the PILOTs receivable in the coming year (PILOTs receivable FYE 6/30/2017), the amount entered on the form should be based on a good faith estimate of the amount the district expects to receive. To the extent that the amount receivable from LIPA is the subject of litigation, school district officials should consult with their school district’s attorney regarding the amount receivable during the school year. As with all PILOT payments, any decisions regarding the LIPA PILOTs used in the calculation of the tax levy limit should be documented for potential post-audit review.

Issued: February 18, 2016