Bill Text: NY S02389 | 2019-2020 | General Assembly | Introduced
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: Bipartisan Bill
Status: (Introduced - Dead) 2020-02-25 - RECOMMIT, ENACTING CLAUSE STRICKEN [S02389 Detail]
Download: New_York-2019-S02389-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2389 2019-2020 Regular Sessions IN SENATE January 24, 2019 ___________ Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Cities 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 successful in preventing a large increase in capacity rates for elec- 4 tricity that would have cost ratepayers in the city of New York hundreds 5 of millions of dollars had the law not been changed. However, in the 6 haste to adopt that law, a new peaking power plant fell through the 7 cracks and has been paying property taxes since it began operations in 8 2012, even though the 2011 statute clearly intended that industrial and 9 commercial abatement program benefits be provided to peaking power 10 plants as a right. This act would correct that defect in the statute and 11 enable the facility to receive industrial and commercial abatement 12 program benefits 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08403-01-9S. 2389 2 1 (c), (d), (e), (f) and (i) of subdivision twelve of section one hundred 2 two of this chapter, without regard to the classification of such prop- 3 erty and equipment for real property tax purposes pursuant to section 4 eighteen hundred two of this chapter, except that any such property and 5 equipment used solely to serve the building to which they are attached 6 shall not be deemed utility property. Notwithstanding any provision of 7 this title to the contrary, peaking units shall not be considered utili- 8 ty property. For purposes of this title, "peaking unit" shall mean a 9 generating unit that: (a) is determined by the New York independent 10 system operator or a federal or New York state energy regulatory commis- 11 sion to constitute a peaking unit as set forth in section 5.14.1.2 of 12 the New York independent system operator's market administration and 13 control area services tariff, as such term existed as of April first, 14 two thousand eleven; or (b) has an annual average operation, during the 15 calendar year preceding the taxable status date, of less than eighteen 16 hours following each start of the unit; for purposes of calculating the 17 annual average, operations during any period covered by any major emer- 18 gency declaration issued by the New York independent system operator, 19 northeast power coordinating council, or other similar entity shall be 20 excluded; or (c) notwithstanding the requirements and provisions of this 21 title, any peaking unit that was planned, approved and under 22 construction between the effective date of this title and the effective 23 date of chapter twenty-eight of the laws of two thousand eleven, and 24 upon going into service exclusively provides electricity to Zone J, 25 shall be deemed eligible for the benefits of this title; provided, 26 however, that the benefit period for a peaking unit shall be as set 27 forth in paragraph (b-1) of subdivision three of section four hundred 28 eighty-nine-bbbbbb of this title; and provided, further, that such bene- 29 fits shall commence upon the effective date of this paragraph. A "peak- 30 ing unit" under this title shall include all real property used in 31 connection with the generation of electricity, and any facilities used 32 to interconnect the peaking unit with the electric transmission or 33 distribution system, but shall not include any facilities that are part 34 of the electric transmission or distribution system; it may be comprised 35 of a single turbine and generator or multiple turbines and generators 36 located at the same site. Notwithstanding any provision of this title to 37 the contrary, a peaking unit shall be considered industrial property, 38 provided however that the benefit period for a peaking unit shall be as 39 set forth in paragraph (b-1) of subdivision three of section four 40 hundred eighty-nine-bbbbbb of this title. 41 § 3. Subdivision q of section 11-268 of the administrative code of the 42 city of New York, as amended by chapter 28 of the laws of 2011, is 43 amended to read as follows: 44 q. "Utility property" means property and equipment as described in 45 paragraphs (c), (d), (e), (f) and (i) of subdivision twelve of section 46 one hundred two of the real property tax law that is used in the ordi- 47 nary course of business by its owner or any other entity or property as 48 described in paragraphs (a) and (b) of subdivision twelve of section one 49 hundred two of such law that is owned by any entity that uses in the 50 ordinary course of business property and equipment as described in para- 51 graphs (c), (d), (e), (f) and (i) of subdivision twelve of section one 52 hundred two of such law, without regard to the classification of such 53 property and equipment for real property tax purposes pursuant to 54 section eighteen hundred two of such law, except that any such property 55 and equipment used solely to serve the building to which they are 56 attached shall not be deemed utility property. Notwithstanding anyS. 2389 3 1 provision of this part to the contrary, peaking units shall not be 2 considered utility property. For purposes of this part, "peaking unit" 3 shall mean a generating unit that: (a) is determined by the New York 4 independent system operator or a federal or New York state energy regu- 5 latory commission to constitute a peaking unit as set forth in section 6 5.14.1.2 of the New York independent system operator's market adminis- 7 tration and control area services tariff, as such term existed as of 8 April first, two thousand eleven; or (b) has an annual average opera- 9 tion, during the calendar year preceding the taxable status date, of 10 less than eighteen hours following each start of the unit; for purposes 11 of calculating the annual average, operations during any period covered 12 by any major emergency declaration issued by the New York independent 13 system operator, northeast power coordinating council, or other similar 14 entity shall be excluded; or (c) notwithstanding the requirements and 15 provisions of this part, any peaking unit that was planned, approved and 16 under construction between the effective date of title two-F of article 17 four of the real property tax law and the effective date of chapter 18 twenty-eight of the laws of two thousand eleven, and upon going into 19 service exclusively provides electricity to Zone J, shall be deemed 20 eligible for the benefits of this part; provided, however, that the 21 benefit period for a peaking unit shall be as set forth in paragraph 22 two-a of subdivision c of section 11-269 of this part; and provided, 23 further, that such benefits shall commence upon the effective date of 24 this paragraph. A "peaking unit" under this part shall include all real 25 property used in connection with the generation of electricity, and any 26 facilities used to interconnect the peaking unit with the electric tran- 27 smission or distribution system, but shall not include any facilities 28 that are part of the electric transmission or distribution system; it 29 may be comprised of a single turbine and generator or multiple turbines 30 and generators located at the same site. Notwithstanding any provision 31 of this part to the contrary, a peaking unit shall be considered indus- 32 trial property, provided however that the benefit period for a peaking 33 unit shall be as set forth in paragraph two-a of subdivision c of 34 section 11-269 of this part. 35 § 4. This act shall take effect immediately.
