ALBANY - Assemblyman Daniel Burling (R,C,I-Warsaw) Tuesday called on Governor David Paterson to fully restore state payments to local governments for state land within municipalities. Paterson’s plan would limit payments, known as “payments in lieu of taxes” or PILOT, that communities collect on state-owned land within their boundaries. Burling pointed out the significant impact this would have on local communities, particularly within Allegany, Livingston, and Wyoming counties.

“It’s a step in the right direction that the state has recognized the fact that property taxes are skyrocketing throughout the state,” said Burling. “Unfortunately, their solution is to establish a state property tax rate separate from that paid by taxpayers. It’s completely unfair for the state to cap its own taxes, while not doing the same for working-class and middle-class property owners.”

Municipalities are not able to collect property taxes on state land.

However, New York has traditionally compensated municipalities for a portion of revenues in foregone tax collections. This includes state-owned land such as parks or forests, as well as infrastructure like roads and railroads.

The governor’s proposal would cap payments to localities at the level paid during the State Fiscal Year 2008-09. Future property tax hikes would then disproportionately affect municipalities that would be forced to make up the difference. Burling is concerned with the significant local impact this policy would have. He noted the approximate 50,000 acres of state-owned land located within Allegany, Livingston, and Wyoming counties.