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Senate committee advances bill to clarify local notice on PILOT agreements
Summary
The City, County & Local Affairs Committee advanced House Bill 1386 to require that assessors, collectors and treasurers be notified and involved when counties or cities consider payment-in-lieu-of-tax agreements, clarifying local participation in determining covered property and tax collection under such bond programs.
The Senate City, County & Local Affairs Committee advanced House Bill 1386 after a brief presentation from Lindsay Bailey of the Association of Arkansas Counties.
Bailey told the committee the bill is intended to clarify local procedures for payment-in-lieu-of-tax (PILOT) agreements, which some businesses enter with counties or cities when they meet eligibility requirements established by state development authorities. "There are payment in lieu of tax agreements that businesses can go into with counties or cities, whenever they meet certain requirements set forward by AEDC and ADFA," Bailey said, adding that PILOTs are executed through a bond program and can provide tax abatements.
Under the bill, local officials handling property tax administration — specifically the assessor, the collector and the treasurer — would be notified when a local official meeting to consider a PILOT takes place so those offices can participate in determining which property is covered by the agreement and how taxes that remain due will be collected.
Senators recorded no questions or public testimony on the measure. After Senator Flippo closed the presentation, a committee member moved to pass the bill and the committee approved it by voice vote. The transcript records the committee saying "Aye" and does not include a roll-call tally or individual votes.
The bill will proceed to the next steps in the legislative process as determined by Senate rules.
