PILOT, or “Payment-in-Lieu-of-Taxes” is a contractual incentive payment made by a business to replace some or all of the local property taxes that would otherwise be paid on property owned by an economic development organization such as St. Tammany Corporation (STC). PILOT agreements are discretionary, often used as an economic development tool structured to offer favorable tax reductions to companies that create high impact new or expansion projects.
As a political subdivision of the State of Louisiana, STC was created to foster business development and advance sustainable commerce in St. Tammany Parish. Because of this status, STC can negotiate and enter into PILOT agreements for companies as an incentive to locate, expand, or remain in St. Tammany. When structuring a PILOT, STC negotiates an annual PILOT-payment that is usually lower than the property taxes that would otherwise be due. During the term of the PILOT, STC retains symbolic ownership of the incentivized project, and leases said assets back to the company for “rent” equal to the agreed-upon sum or terms.
WHO IS ELIGIBLE?
Any company looking to locate or expand in St. Tammany Parish may apply, however there is baseline criteria that needs to be present in order for a PILOT Incentive to be feasible, including:
• Project Capital Expenditures in excess of approximately $5 Million
• Creation at least 10 new full-time jobs*
• At least 50% of the jobs must meet or exceed the local average salary
• If above criteria are met, project must undergo a benefit-cost analysis with results indicating at least a 2:1 Benefit-Cost-Ratio
Favorable terms/rates are considered based on the determined positive benefit the project provides to St. Tammany Parish.
**STC may consider waiving the new job creation
For any PILOT related questions, please contact Kyle Buckley.
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