Act 1629 of 2001 (Act) requires municipalities and counties, when negotiating a lease, under a lease agreement, or a sale, under a contract of sale, to provide that all PILOT proceeds be allocated and distributed to the political subdivisions which would have received ad valorem tax payments on the subject property.
For the period July 1, 2001 through June 30, 2003, any PILOT negotiated in the above circumstances is required to equal at least 35% of the amount of ad valorem taxes which would have been collected in the absence of such an agreement. Additionally, during this time period, the city or county shall provide 10 days notice to each and every school district superintendent in which the property is located, of any and all meetings in which action may be taken approving any PILOT.
If you have any questions, please contact G. Richard McDowell at (501) 682-4258.