Bill Text: NY A09827 | 2017-2018 | General Assembly | Introduced

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Bill Title: Grants eligibility for the tax abatement for industrial and commercial construction work in cities having a population of one million or more, to certain electric generating facilities the operation of which commenced in 2012.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2018-02-14 - referred to ways and means [A09827 Detail]

Download: New_York-2017-A09827-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          9827
                   IN ASSEMBLY
                                    February 14, 2018
                                       ___________
        Introduced  by  M. of A. CUSICK, WALKER -- read once and referred to the
          Committee on Ways and Means
        AN ACT to amend the real property tax law and the administrative code of
          the city of New York, in relation to applications by certain  electric
          generating facilities for tax abatements for industrial and commercial
          construction  work  on  properties  in  a  city of one million or more
          persons
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. Legislative findings. The legislature hereby finds that the
     2  2011  amendment  to  the industrial and commercial abatement program was
     3  succesful in preventing a large increase in capacity rates for electric-
     4  ity that would have cost ratepayers in the city of New York hundreds  of
     5  millions  of dollars had the law not been changed. However, in the haste
     6  to adopt that law, a new peaking power plant fell through the cracks and
     7  has been paying property taxes since it began operations in  2012,  even
     8  though  the 2011 statute clearly intended that industrial and commercial
     9  abatement program benefits be provided to  peaking  power  plants  as  a
    10  right.  This act would correct that defect in the statute and enable the
    11  facility to receive industrial and commercial abatement program benefits
    12  prospectively.
    13    § 2. Subdivision 17 of section 489-aaaaaa of  the  real  property  tax
    14  law, as amended by chapter 28 of the laws of 2011, is amended to read as
    15  follows:
    16    17.  "Utility  property"  means property and equipment as described in
    17  paragraphs (c), (d), (e), (f) and (i) of subdivision twelve  of  section
    18  one  hundred  two of this chapter that is used in the ordinary course of
    19  business by its owner or any other entity or property  as  described  in
    20  paragraphs  (a) and (b) of subdivision twelve of section one hundred two
    21  of this chapter that is owned by any entity that uses  in  the  ordinary
    22  course  of  business  property  and equipment as described in paragraphs
    23  (c), (d), (e), (f) and (i) of subdivision twelve of section one  hundred
    24  two  of this chapter, without regard to the classification of such prop-
    25  erty and equipment for real property tax purposes  pursuant  to  section
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14515-01-8
        A. 9827                             2
     1  eighteen  hundred two of this chapter, except that any such property and
     2  equipment used solely to serve the building to which they  are  attached
     3  shall  not  be deemed utility property. Notwithstanding any provision of
     4  this title to the contrary, peaking units shall not be considered utili-
     5  ty  property.  For  purposes  of this title, "peaking unit" shall mean a
     6  generating unit that: (a) is determined  by  the  New  York  independent
     7  system operator or a federal or New York state energy regulatory commis-
     8  sion  to  constitute  a peaking unit as set forth in section 5.14.1.2 of
     9  the New York independent system  operator's  market  administration  and
    10  control  area  services  tariff, as such term existed as of April first,
    11  two thousand eleven; or (b) has an annual average operation, during  the
    12  calendar  year  preceding the taxable status date, of less than eighteen
    13  hours following each start of the unit; for purposes of calculating  the
    14  annual  average, operations during any period covered by any major emer-
    15  gency declaration issued by the New York  independent  system  operator,
    16  northeast  power  coordinating council, or other similar entity shall be
    17  excluded; or (c) notwithstanding the requirements and provisions of this
    18  title,  any  peaking  unit  that  was  planned,   approved   and   under
    19  construction  between the effective date of this title and the effective
    20  date of chapter twenty-eight of the laws of  two  thousand  eleven,  and
    21  upon  going  into  service  exclusively  provides electricity to Zone J,
    22  shall be deemed eligible for  the  benefits  of  this  title;  provided,
    23  however,  that  the  benefit  period  for a peaking unit shall be as set
    24  forth in paragraph (b-1) of subdivision three of  section  four  hundred
    25  eighty-nine-bbbbbb of this title; and provided, further, that such bene-
    26  fits  shall commence upon the effective date of this paragraph. A "peak-
    27  ing unit" under this title shall  include  all  real  property  used  in
    28  connection  with  the generation of electricity, and any facilities used
    29  to interconnect the peaking  unit  with  the  electric  transmission  or
    30  distribution  system, but shall not include any facilities that are part
    31  of the electric transmission or distribution system; it may be comprised
    32  of a single turbine and generator or multiple  turbines  and  generators
    33  located at the same site. Notwithstanding any provision of this title to
    34  the  contrary,  a  peaking unit shall be considered industrial property,
    35  provided however that the benefit period for a peaking unit shall be  as
    36  set  forth  in  paragraph  (b-1)  of  subdivision  three of section four
    37  hundred eighty-nine-bbbbbb of this title.
    38    § 3. Subdivision q of section 11-268 of the adminsitrative code of the
    39  city of New York, as amended by chapter 28  of  the  laws  of  2011,  is
    40  amended to read as follows:
    41    q.  "Utility  property"  means  property and equipment as described in
    42  paragraphs (c), (d), (e), (f) and (i) of subdivision twelve  of  section
    43  one  hundred  two of the real property tax law that is used in the ordi-
    44  nary course of business by its owner or any other entity or property  as
    45  described in paragraphs (a) and (b) of subdivision twelve of section one
    46  hundred  two  of  such  law that is owned by any entity that uses in the
    47  ordinary course of business property and equipment as described in para-
    48  graphs (c), (d), (e), (f) and (i) of subdivision twelve of  section  one
    49  hundred  two  of  such law, without regard to the classification of such
    50  property and equipment  for  real  property  tax  purposes  pursuant  to
    51  section  eighteen hundred two of such law, except that any such property
    52  and equipment used solely to  serve  the  building  to  which  they  are
    53  attached  shall  not  be  deemed  utility  property. Notwithstanding any
    54  provision of this part to the  contrary,  peaking  units  shall  not  be
    55  considered  utility  property. For purposes of this part, "peaking unit"
    56  shall mean a generating unit that: (a) is determined  by  the  New  York
        A. 9827                             3
     1  independent  system operator or a federal or New York state energy regu-
     2  latory commission to constitute a peaking unit as set forth  in  section
     3  5.14.1.2  of  the New York independent system operator's market adminis-
     4  tration  and  control  area  services tariff, as such term existed as of
     5  April first, two thousand eleven; or (b) has an  annual  average  opera-
     6  tion,  during  the  calendar  year preceding the taxable status date, of
     7  less than eighteen hours following each start of the unit; for  purposes
     8  of  calculating the annual average, operations during any period covered
     9  by any major emergency declaration issued by the  New  York  independent
    10  system  operator, northeast power coordinating council, or other similar
    11  entity shall be excluded; or (c) notwithstanding  the  requirements  and
    12  provisions of this part, any peaking unit that was planned, approved and
    13  under  construction between the effective date of title two-F of article
    14  four of the real property tax law and  the  effective  date  of  chapter
    15  twenty-eight  of  the  laws  of two thousand eleven, and upon going into
    16  service exclusively provides electricity to  Zone  J,  shall  be  deemed
    17  eligible  for  the  benefits  of  this part; provided, however, that the
    18  benefit period for a peaking unit shall be as set forth in  subparagraph
    19  (a)  of  paragraph  two of subdivision c of section 11-269 of this part;
    20  and provided, further, that such benefits shall commence upon the effec-
    21  tive date of this paragraph. A "peaking  unit"  under  this  part  shall
    22  include  all  real  property  used  in connection with the generation of
    23  electricity, and any facilities used to interconnect  the  peaking  unit
    24  with  the  electric  transmission  or distribution system, but shall not
    25  include any facilities that are part of  the  electric  transmission  or
    26  distribution system; it may be comprised of a single turbine and genera-
    27  tor  or  multiple  turbines  and  generators  located  at the same site.
    28  Notwithstanding any provision of this part to the  contrary,  a  peaking
    29  unit  shall be considered industrial property, provided however that the
    30  benefit period for a peaking unit shall be as  set  forth  in  paragraph
    31  two-a of subdivision c of section 11-269 of this part.
    32    § 4. This act shall take effect immediately.