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September 8, 2008
Payments in Lieu of Taxes: An Animated Explanation
This animated explanation of PILOTs and TIFs, both creative ways that tax revenue is diverted towards paying for government-sponsored projects, was brought to our attention by the folks at Develop Don't Destroy Brooklyn, who posed the question, "Wouldn't it be nice if you too could use your taxes to pay your mortgage or rent?!"
NoLandGrab: Bruce Ratner is hoping to use PILOTs to finance a new Frank Gehry-designed arena for his NJ Nets basketball team.
That means that, if he gets the go-ahead on PILOTs, the money that would normally be collected as property tax and flow to the State coffers, would instead be used to pay off the loan that financed the construction of the arena.
PILOTs and TIFs are a convoluted response to the taxpayer backlash against direct funding of controversial projects or simple hand-outs of subsidies.
Posted by lumi at September 8, 2008 5:26 AM