PILOT Audits

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PILOT Audits

New Jersey PILOT agreements come with complex financial reporting and compliance requirements. We help developers navigate those requirements with experienced guidance under the Financial Agreement, through annual audits, and with ongoing compliance.

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Amanda Brady

Practice Leader

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Who We Serve

New Jersey’s Payment in Lieu of Taxes (“PILOT”) program (N.J.S.A. 40A:20-1) was enacted to help municipalities entice developers to rehabilitate or redevelop certain areas within the municipalities that are deemed to be distressed or blighted. This program encourages development amongst commercial, residential, and industrial properties. The PILOT program allows municipalities to offer developers an exemption from full property taxes. In lieu of paying traditional property taxes, developers remit an annual service charge which is calculated based upon the criteria agreed to within a Financial Agreement between the municipality and the developer.

We work with developers at every stage of a PILOT project, from structuring the Financial Agreement before it is signed through the annual audit and Net Allowable Profits calculation once the project is operating. Whether you are negotiating your first Financial Agreement with a municipality or managing a portfolio of properties with Financial Agreements, our team can help you navigate the financial and reporting requirements involved.

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Supporting business growth, transition, and personal financial success with expert accounting, tax, and advisory services.

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How We Can Help

Developers typically come to us at one of three points:

Negotiating a Financial Agreement: Understanding how the service charge formula and other financial provisions may affect project economics.
Preparing for the first annual audit: Understanding what to expect from the audit process, what will be required, and how to prepare.
Managing ongoing annual audits: Coordinating audit and reporting requirements across multiple municipalities, each with its own Financial Agreement terms and calculation methodology.

Our Expertise

Our team has more than 25 years of experience completing PILOT audits for developers throughout New Jersey. Because municipalities may administer their PILOT programs differently, we take the time to understand the nuances of each Financial Agreement and how its requirements are applied. This allows us to provide guidance specific to each project rather than taking a one-size-fits-all approach.