This bill mandates that sellers of real property constructed under a long-term tax exemption must provide prospective buyers with detailed information regarding payments in lieu of property taxes (PILOTs). Before finalizing the sale agreement, sellers are required to furnish a written document that outlines how the PILOT payment is calculated, the duration of the agreement, and the potential impact on the buyer's eligibility for state property tax relief programs. The document must be signed and dated by the prospective purchaser and returned to the seller, ensuring that buyers are fully informed about the financial obligations associated with the property.

The intent of this legislation is to enhance transparency for buyers of properties developed under the Long Term Tax Exemption Law, which allows developers to enter into financial agreements with municipalities that exempt them from traditional property taxes. Instead, these properties are subject to PILOTs, which may affect the buyer's eligibility for various state property tax relief programs. By requiring this disclosure, the bill aims to ensure that prospective purchasers are aware of the implications of their purchase, particularly regarding potential ineligibility for benefits such as the veterans property tax deduction and the homestead property tax reimbursement.