The VCSD BOE passed a resolution in 2014 voicing strong opposition to PILOTs and urging the seven towns that comprise the district, and Orange County to exercise restraint when granting them in consideration of their adverse effect on the tax levy limit of the school district.
A PILOT is an entity or business that has asked for a “Payment in lieu of taxes” instead of paying their full assessed property taxes in exchange for a promise to develop that property to the advantage of either the Town or County granting it. Under such an agreement, a company makes some fixed yearly contribution to a municipality or school system rather than pay property taxes. The amount paid is typically lower than what the company would have paid if it was taxed normally. School officials have no say in the negotiation of a PILOT; the school district is at the mercy of the decision of the IDA and must abide by the agreement that they make.
Valley Central is currently affected by twenty-one PILOTs with the greatest number being in the Town of Montgomery. While a PILOT shifts the tax burden in a community, it has another effect on the community as well. It affects the tax levy limit calculation of municipalities which can create financial stress of those municipalities.