Court Says PILOT Payments Are Unconstitutional
Payments in lieu of taxes are unenforceable because they violate public policy for exemption
An appellate court in Florida has found that an agreement by an affordable housing developer to make payments in lieu of taxes is unconstitutional and unenforceable. Because of the importance of the issue and the possibility that the ruling might pose a significant hardship on municipalities that rely on PILOTS to fund their budgets, the Court has certified the question to the state Supreme Court. (AHF-Bay Fund, v. City of Largo, Ct. of App., Second Dist., FL, No. 2D14-408, 4/22/15.)
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