Straight Lease Back Tax Savings

The Straight Lease Back (SLB) agreement is a vehicle to provide real property tax abatements and tax exemptions related to capital investment projects that include construction or purchase of land, buildings, machinery and equipment, and related technology infrastructure in order to catalyze business investment and the retention and creation of jobs.

Click here for the SLB Application Form

Property Tax

A PILOT (Payment-In-Lieu-Of-Tax) agreement, which is part of the SLB, represents significant reductions in real property taxes paid by the company over a 10 to 14 year period. The tax abatement is inclusive of all real property taxes (School, County, Town) but does not abate minimal locally levied municipal “fees.” 

  • 68 percent average property tax abatement over 14 years of business capital investments and job enabling projects

  • Eligible enterprises include firms oriented toward commerce, industry, manufacturing or service

  • 60 percent average property tax abatement over 10 years for retail and destination tourism firms

Sales Tax

The sales tax exemption portion of the Sale Lease Back (SLB) can eliminate both the Local and State sales tax on all sales taxable items related to a capital investment project. Exemption is generally limited to the construction or installation period of a project.

  • Elimination of Local sales tax (4 percent)

  • Elimination of State sales tax (4 percent)

  • Equipment-only capital investments also eligible

Mortgage Tax

The mortgage tax exemption portion of the SLB eliminates the County mortgage tax on “Financed/mortgaged” real property as appropriate.

  • Elimination of 1.00 percent county mortgage tax

 
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