Stagecoach Pipeline & Storage Company LLC (previously CNYOG) Pilot explained:

The expiration of the Stagecoach Pipeline & Storage Company LLC (previously CNYOG) PILOT will result in a significant property valuation being added to the district's tax base, which, statistically, will cause the overall tax levy to appear to increase substantially.

While the initial tax levy calculation may appear to be a significant increase due to the Stagecoach Pipeline & Storage Company LLC (previously CNYOG) property transitioning to the tax rolls, the change is in the reporting, not in the actual tax impact.

The District is committed to fiscal responsibility and providing excellent education within our means.

KEY POINTS:

• The increase to the levy does not equate to an increase in each property owner's taxes.

• NYS, along with the Tax Assessors' office, determines the equalization rates that ultimately determine the increase/decrease in property taxes for each town.

• The district has no control over this occurrence and is required to follow the law and the operative structure of PILOTs and property taxes. It is the result of PILOT programs and their relationship to the property taxes once the property comes off the PILOT and onto the regular tax rolls.

Property taxes are one of the primary ways local governments and school districts fund essential services such as education, public safety, infrastructure, and community programs. While the system can appear complex, it follows a consistent and logical process each year.

Step 1: Assessing Property Value

Every property in a town is assigned an assessed value by the Town Assessor. This value represents the property’s worth in relation to other properties—not the taxes owed. Assessors do not set tax rates or determine tax bills. Their role is to ensure properties are assessed fairly and equitably based on market value and state standards.

Step 2: Creating Local Budgets

School districts, counties, towns, and villages each adopt their own budgets based on the cost of providing services for the coming year. Before determining how much must be raised through property taxes, other revenue sources—such as state aid, sales tax, and PILOT payments—are subtracted. The remaining amount is known as the tax levy.

Step 3: Apportioning the Levy Fairly

Because towns assess property at different percentages of market value, equalization rates are used to convert assessed values to full market value. This ensures that each municipality contributes its fair share of the tax levy based on true property value.

Step 4: Calculating the Tax Rate

The tax rate is calculated by dividing the tax levy by the total taxable assessed value. As a result, tax rates can change not only when budgets change, but also when the total taxable value changes.

Why Tax Bills Can Change Without New Spending

Tax bills may change due to shifts in assessed value, new construction, properties returning to the tax roll, expiring exemptions or PILOT agreements, or changes in equalization rates. An increase in the tax levy does not automatically mean higher taxes for individual property owners.

The Big Picture

Property taxes are the result of fair assessments, responsible budgeting, and equitable distribution across the tax base. Understanding how these components work together helps explain why changes on paper do not always translate into increased taxes for taxpayers.

Understanding PILOTs and School District Tax Levies

This overview is intended to help school boards, administrators, and community members understand how Payments in Lieu of Taxes (PILOTs) affect school district budgets, tax levies, and the tax cap.

What is a PILOT?

A Payment in Lieu of Taxes (PILOT) is an economic development agreement between a property owner and local taxing jurisdictions, including school districts. Instead of paying full property taxes immediately, the property owner makes scheduled PILOT payments that typically start lower and increase over time.

How PILOTs Are Reflected in School Budgets

For school districts, PILOT payments are treated as a separate revenue source and are deducted from the budget before calculating the tax levy. While a PILOT is active, the associated property is removed from the taxable portion of the assessment roll and classified as exempt.

What Happens When a PILOT Ends?

When a PILOT expires, two changes occur simultaneously:

1. The final PILOT payment is no longer available as budget revenue, which causes the tax levy to increase by that same amount.

2. The property returns to the taxable portion of the assessment roll, increasing the district’s total taxable assessed value.

 Because these changes happen at the same time, the increase in levy is offset by an increase in taxable value.

Why the Tax Rate Changes Very Little

Although the levy may increase when a PILOT ends, the tax rate is calculated by dividing the levy by the total taxable assessed value. When both increase proportionally, the resulting tax rate typically changes very little.

Key Points for School Districts to Communicate

- The expiration of a PILOT does not represent a new spending decision by the school district.
- The apparent increase in the tax levy is an accounting shift, not a structural tax increase.
- The school district receives the same value in revenue, just through standard taxation instead of a PILOT.
- Returning properties strengthen the long-term tax base for the district.

Bottom Line

When a PILOT ends, the school district’s financial position remains stable. The transition reflects a shift from PILOT revenue to traditional property tax revenue, with minimal impact on individual taxpayers and full compliance with the New York State tax cap.

Steven Palinosky, CCD

Tioga County Director of Real Property Tax Services

3/9/26 - Budget Workshop: Initial Review of the Budget

3/30/26 - BOE Meeting Second Review of the Budget

3/31/26 - Prospective Board Member Session at BOCES: Click Here For More Information

4/20/26 - BOE Meeting Final Review of the Budget

April 20, 2026- Board of Education Candidate Petitions Due - No Later Than 4 pm

School Budget Information Session: April 30, 2026, at Apalachin Elementary School

School Budget Public Hearing: May 11, 2026, in the Board of Education Room, OA District Office

School Budget Vote and Board of Education Election: May 19, 2026, from Noon to 8:00 PM (Apalachin Elementary School and the OACSD District Office - Board of Education Room)

Contact the district clerk directly to request an absentee ballot (607) 687-6215 or email vote@oacsd.org. Absentee ballots must be received by the district clerk by 5 pm on May 19th. They can be dropped off at the district office, 5 Sheldon Guile Boulevard, Owego. You may place them in the blue drop box or bring them to the district clerk inside the building.

You are eligible to vote if you are 18 years of age as of May 19th, a citizen of the United States, and have been a resident of the school district for 30 days before today. You do not need to be registered with the Board of Elections, but you must show a valid photo identification.

Vote in person at the OACSD District Office - Board of Education Room or Apalachin Elementary School from Noon to 8:00 pm on May 19, 2026. (Location is based on residency.)

If you have questions about your voting location, please contact the district clerk directly at (607) 687-6215 or email Vote@oacsd.org.

Or by using Let’s Talk! - https://www.oacsd.org/page/lets-talk.