Property Ownership
In New York, the 'PILOT' (Payment in Lieu of Taxes) arrangement is commonly used in connection with:
ATax-exempt nonprofit organizations that own real property subject to standard property taxes
BDevelopments that receive tax incentives and where the developer pays negotiated payments to the municipality instead of full property taxes, often used in affordable housing and economic development projects✓ Correct
CPrivate schools that want to avoid all property taxes
DResidential homeowners who cannot afford their full property tax bill
Explanation
A PILOT agreement in New York is a negotiated arrangement (often through an Industrial Development Agency or housing authority) in which a property owner makes payments in lieu of standard property taxes, typically on a reduced schedule that increases over time toward full taxation. PILOTs are common in affordable housing projects (financed with tax-exempt bonds) and economic development projects seeking to attract businesses.
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