Couple Seeks Tax Deal For Carthage BuildingPosted: Updated:
A Lewis County couple is asking for a tax deal to help open a new restaurant in Carthage.
Scott and Shannon Sauer bought the Dock Street building along the Black River last year.
The $1.5 million project received a $700,000 Restore NY grant earlier this year.
It's believed once the project is finished, the assessed value of the property will go from $100,000 to $750,000, increasing the property tax bill by $17,000 a year.
To mitigate that, the owners are asking for a 10-year payment in lieu of taxes, or PILOT, agreement.
According to the Jefferson County Industrial Development Agency, which is handling the details, here's how that would work:
If approved, in year one of the agreement, the property owners would pay 20 percent of their tax bill, totaling $3,711 based on the new, probable $750,000 assessment. That's more than the current property taxes of $1,727 on the $100,000 assessment.
In year two, the percentage would remain 20 percent. In years 3 through 10, the percentage increases, eventually getting to 100 percent after the 10 year agreement runs out.
Over the 10 year period, the Sauers would pay half the total amount of taxes they would if there wasn't a PILOT agreement - $93,696 instead of $187,393.
Jefferson County, Carthage, the town of Wilna and the Carthage School District will each have to consider approval of the PILOT agreement drawn up by the JCIDA.