The IDA is Franklin County's primary economic development agency, a public benefit corporation formed under Article 18-A of the New York State General Municipal Law. It was created to promote, encourage, attract and develop job and recreational opportunities, and to facilitate economically sound business and industry in Franklin County.
To accomplish this, the IDA issues bonds and provides financial assistance to private sector entities in the form of tax incentives.
What is a PILOT?
PILOT payments are Payments-In-Lieu of Taxes. They are not taxes. Instead, a company makes payments to affected taxing jurisdictions (e.g. Franklin County, a village or town, and a school system) on an agreed-upon schedule, after which they pay taxes on the full assessed value of their project.
This lowers the expense for a company in their startup or expansion phase, but provides for long term revenue to the taxing jurisdictions in exchange for the investment and job creation.
How does a PILOT work with other tax exemptions?
A PILOT is part of the IDA Uniform Tax Exemption Policy (pdf) which provides exemption from real property taxes, mortgage recording tax and sales tax. These are substantial expense items, and to qualify as exempt from payment may assure the feasibility of the project.
What does a PILOT cost?
There are two primary expense items to obtain a PILOT and other tax exemptions, and these are Legal Fees and Agency Fees. Legal fees are quoted on a case-by-case basis since no two projects are exactly the same. Agency Fees, though, are the same for everyone.
Type of Fee
Applies to all applications
(1.0% on first $25 M for PILOT and tax exemptions)
(1.0% on first $25 M upon sale of bonds)
Project Savings Fee
Exemption Mortgage Recording Tax (which is 1.0%)