Bill Text: NY A10619 | 2023-2024 | General Assembly | Introduced

---

Bill Title: Establishes an exemption from taxation for energy-related public utility real property related to attaining state climate goals; provides that such exemption shall remain in effect until it is retired or removed from service.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-20 - referred to real property taxation [A10619 Detail]

Download: New_York-2023-A10619-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          10619

                   IN ASSEMBLY

                                      June 20, 2024
                                       ___________

        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Burdick) --
          read once and referred to the Committee on Real Property Taxation

        AN ACT to amend the public service law and the real property tax law, in
          relation to establishing an exemption from taxation for energy-related
          public utility real property related to attaining state climate goals

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The public service law is amended by adding a new section
     2  28 to read as follows:
     3    § 28. Utility tax exemption for  energy-related  public  utility  real
     4  property  related to attaining state climate goals. 1. The department is
     5  authorized and directed to consult with the commissioner of taxation and
     6  finance in developing definitions and guidelines for the eligibility for
     7  exemption of energy-related public utility real property as described in
     8  subdivisions two and three of section four hundred eighty-seven-b of the
     9  real property tax law. No energy-related public  utility  real  property
    10  shall  be  entitled  to  any  exemption from taxation under section four
    11  hundred eighty-seven-b of the real property tax law unless such  project
    12  meets  the guidelines set by the commissioner of taxation and finance in
    13  consultation with the department.
    14    2. The department shall ensure that any  net  decrease  in  a  utility
    15  company's  real  property  tax  expense resulting from the provisions of
    16  section four hundred eighty-seven-b of the real property tax  law  shall
    17  inure to the benefit of the ratepayers of such company.
    18    §  2.  The  real  property  tax law is amended by adding a new section
    19  487-b to read as follows:
    20    § 487-b. Exemption from taxation  for  energy-related  public  utility
    21  real  property  related  to attaining state climate goals. 1. As used in
    22  this section:
    23    (a) "Energy-related public utility real property" means real  property
    24  that  is  owned by a utility corporation and used in the storage, trans-
    25  mission and distribution of electricity, or  steam  including  conduits,
    26  cables,  lines, wires, poles, mains, pipes, substations, tanks, supports
    27  and enclosures for electrical conductors located  on,  above  and  below
    28  real property.
    29    (b) "Department" means the department of public service.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15726-01-4
        A. 10619                            2

     1    (c)  "Utility  corporation"  shall have the same meaning as defined in
     2  section two of the public service law.
     3    (d)  "State climate goals" shall mean the climate justice and emission
     4  reduction goals in article seventy-five of the  environmental  conserva-
     5  tion  law  and  the renewable energy goals in section sixty-six-p of the
     6  public service law.
     7    2. Energy-related public utility real property, the primary purpose of
     8  which is to aid in meeting state climate goals,  shall  be  exempt  from
     9  taxation,  special  ad  valorem  levies,  and  special assessments. Such
    10  exemption shall remain in effect until such energy-related public utili-
    11  ty real property is retired and removed from service.
    12    3. Energy-related public utility real  property  owned  by  a  utility
    13  corporation prior to January first, two thousand twenty-four, the prima-
    14  ry  purpose  of which is to aid in meeting state climate goals, shall be
    15  exempt from taxation, special ad valorem levies, and special assessments
    16  to the extent of any increase in the value  thereof  by  reason  of  the
    17  inclusion of new energy-related public utility real property designed to
    18  meet  state  climate  goals. Such exemption shall remain in effect until
    19  such assets or installations are retired and removed from service.
    20    4. The commissioner, in consultation with the department, shall, after
    21  notice and opportunity  for  public  comment,  provide  definitions  and
    22  guidelines  for  the  eligibility for exemption of energy-related public
    23  utility real property described in subdivisions two and  three  of  this
    24  section.  No  energy-related public utility real property shall be enti-
    25  tled to any exemption from  taxation  under  this  section  unless  such
    26  project  meets  the  guidelines set by the commissioner, in consultation
    27  with the department, and all other applicable  provisions  of  law.  The
    28  commissioner,  in  consultation  with  the  department,  shall determine
    29  adherence to such definitions and guidelines for  each  application  and
    30  shall certify or withhold certification for each application.
    31    5.  Such  exemption shall be granted upon application by the owner and
    32  certification by the commissioner, in consultation with the  department.
    33  Such  application by the owner of the energy-related public utility real
    34  property shall be on a form prescribed and made available by the commis-
    35  sioner, in consultation with the department. The applicant shall furnish
    36  such information as the  commissioner  shall  require.  The  application
    37  shall  be  filed with the assessor of the appropriate county, city, town
    38  or village having the power to assess property for taxation on or before
    39  the taxable status date of such county, city, town or village. A copy of
    40  such application shall be filed with the commissioner who shall  provide
    41  it to the department.
    42    6.  The  assessor  shall approve applications certified by the commis-
    43  sioner.  In the event that energy-related public utility  real  property
    44  granted an exemption pursuant to this section ceases to be used primari-
    45  ly for eligible purposes, the exemption granted pursuant to this section
    46  shall cease.
    47    7.  Any  net decrease in a utility company's real property tax expense
    48  resulting from the provisions of this section shall inure to the benefit
    49  of the ratepayers of such company.
    50    § 3. This act shall take effect on the first of January next  succeed-
    51  ing  the  date  on  which  it shall have become a law and shall apply to
    52  taxable years beginning on or after such  date.  Effective  immediately,
    53  the  addition,  amendment and/or repeal of any rule or regulation neces-
    54  sary for the implementation of  this  act  on  its  effective  date  are
    55  authorized to be made and completed on or before such effective date.