Town of Somerset Publishes Estimate of Financial Impact of the Niagara County Industrial Development Agency - AES Somerset PILOT Tax Reduction for its Existing Coal Fired Power Plant
The total cost to taxpayers of the AES Somerset, LLC, PILOT will be at least $27.02 million over the 12 years of the PILOT. Other taxpayers in Niagara County, the Barker Central School District and the Town of Somerset will have to make the difference up through increased taxes, reduced services or a combination of the two.
(PRWEB) November 8, 2006 -- The Town of Somerset published an initial analysis of the financial impact of the tax reduction granted to AES Somerset, LLC. On October 27, 2006, the Niagara County Industrial Development Agency (IDA) passed a resolution to replace property taxes for the existing AES Somerset, LLC, power plant with a Payment in Lieu of Taxes (PILOT). The cost of this PILOT reduction in taxes for AES will fall on the shoulders of Niagara County, Barker Central School District and Town of Somerset property tax payers.
The PILOT payment agreement that the Niagara County IDA approved does not include Special District Taxes and other payments that AES Somerset currently makes. These payments total $822,844. They include Niagara County Refuse, Somerset Sewer, Somerset Water, Niagara County Water, as well as the Barker Fire Department. The total cost to taxpayers over the life of the PILOT, including Special District and other taxes, will be $27.02 million. The real cost will be greater as inflation reduces the amount services that these lowered funds can purchase.
Each of the three taxing jurisdictions will need to increase taxes, reduce services or both. Taxpayers will feel the greatest pain starting in 2010, when the annual tax revenue loss will be $2.5 million.
Henry Sloma, Chairman of the Niagara County Industrial Development Board, will determine how much taxpayers in Niagara County, the Barker Central School District and the Town of Somerset will have to make up through increased taxes and reduced services. If Mr. Sloma distributes the PILOT payments as required by New York State law, the PILOT payment distribution will be 35 percent to Niagara County, 56.3 percent to the Barker Central School District and 8.7 percent to the Town of Somerset.
The Town of Somerset will continue to seek involvement in discussions to determine the distribution of the PILOT payments, which previously have been held behind cold doors, excluding both the Town of Somerset and the Barker Central School District.
For more information, visit www.somersetny.org/PILOT.
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