Bill Text: NY S05325 | 2019-2020 | General Assembly | Amended
Bill Title: Establishes an energy-related public utility mass real property central assessment program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO LOCAL GOVERNMENT [S05325 Detail]
Download: New_York-2019-S05325-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5325--B 2019-2020 Regular Sessions IN SENATE April 25, 2019 ___________ Introduced by Sen. HARCKHAM -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property tax law, in relation to an energy-re- lated public utility mass real property central assessment program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (a) of subdivision 2 of section 200-a of the real 2 property tax law, as separately amended by section 2 of part J of chap- 3 ter 57 and chapter 475 of the laws of 2013, is amended to read as 4 follows: 5 (a) The power to determine the final special franchise value, special 6 franchise assessment, railroad ceiling, state equalization rate or any 7 other equalization product established pursuant to this chapter for 8 which a complaint has been filed, as provided by sections four hundred 9 eighty-nine-o, four hundred eighty-nine-ll, four hundred ninety-nine- 10 pppp, four hundred ninety-nine-bbbbb, six hundred fourteen, twelve 11 hundred ten, twelve hundred fifty-three, and twelve hundred sixty-three 12 of this chapter; 13 § 2. Paragraph (a) of subdivision 2 of section 200-a of the real prop- 14 erty tax law, as amended by section 2 of part J of chapter 57 of the 15 laws of 2013, is amended to read as follows: 16 (a) The power to determine the final special franchise value, special 17 franchise assessment, railroad ceiling, state equalization rate or any 18 other equalization product established pursuant to this chapter for 19 which a complaint has been filed, as provided by sections four hundred 20 eighty-nine-o, four hundred eighty-nine-ll, four hundred ninety-nine- 21 bbbbb, six hundred fourteen, twelve hundred ten, twelve hundred fifty- 22 three, and twelve hundred sixty-three of this chapter; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11341-05-9S. 5325--B 2 1 § 3. Article 4 of the real property tax law is amended by adding a new 2 title 6 to read as follows: 3 TITLE 6 4 ENERGY-RELATED PUBLIC UTILITY MASS REAL PROPERTY CENTRAL 5 ASSESSMENT PROGRAM 6 Section 499-tttt. Definitions. 7 499-uuuu. Annual fee. 8 499-vvvv. Assessment of local energy-related public utility 9 mass real property. 10 499-wwww. Assessment ceiling. 11 499-xxxx. Local energy-related public utility mass real proper- 12 ty value. 13 499-yyyy. Equitable ratio of assessment. 14 499-zzzz. Equalization rate. 15 499-aaaaa. Tentative determination of assessment ceiling; 16 notice, complaints and hearing. 17 499-bbbbb. Final determination of assessment ceiling; certif- 18 icate. 19 499-ccccc. Application of assessment ceiling; computation of 20 exemption. 21 499-ddddd. Reports to commissioner. 22 499-eeeee. Inspection of accounts and property of public utili- 23 ties. 24 § 499-tttt. Definitions. When used in this title: 25 1. "Local energy-related public utility mass real property" means 26 energy-related public utility mass real property. 27 2. "Local assessing jurisdiction" means the town, city, village or 28 county assessing unit that establishes the assessment rolls for such 29 town, city, village or county. 30 3. "Energy-related public utility mass real property" means real prop- 31 erty that is: (a) owned by an electric corporation, gas corporation, 32 combination gas and electric corporation, or steam corporation as such 33 terms are defined in section two of the public service law, and (b) used 34 in the storage, transmission and distribution of electricity, gas, or 35 steam including conduits, cables, lines, wires, poles, mains, pipes, 36 substations, tanks, supports and enclosures for electrical conductors 37 located on, above and below real property. Such term shall include all 38 property described in paragraph (e) of subdivision twelve of section one 39 hundred two of this chapter. Special franchise property as described in 40 subdivision seventeen of section one hundred two of this chapter and all 41 property described in paragraphs (a) and (b) and subparagraphs (A), (B), 42 (C) and (D) of paragraph (i) of subdivision twelve of section one 43 hundred two of this chapter shall not be considered energy-related 44 public utility mass real property for purposes of this title. 45 4. "Taxation" means an ad valorem levy or special assessment for which 46 energy-related public utility mass real property is otherwise liable 47 pursuant to this chapter. 48 § 499-uuuu. Annual fee. Any costs and expenses incurred by the commis- 49 sioner under the energy-related public utility mass real property 50 central assessment pilot program shall be paid from the collection of an 51 annual charge upon the owners of such local energy-related public utili- 52 ty mass real property. The commissioner shall provide by rule for compu- 53 tation of such charge through the apportionment of these costs and 54 expenses to owners of local energy-related public utility mass real 55 property in relation to the total full value of the local energy-relatedS. 5325--B 3 1 public utility mass real property eligible for an assessment ceiling 2 pursuant to this title. Prior to collecting payment of such charges, the 3 commissioner shall annually provide a detailed report to each owner of 4 local energy-related public utility mass real property identifying costs 5 related to the establishment of assessment ceilings, including, but not 6 limited to, expenditures, revenue sources and any allocations. The 7 charges established pursuant to this section shall be subject to the 8 approval of the director of the budget. Each owner of local energy-re- 9 lated public utility mass real property shall be authorized to challenge 10 any such charges pursuant to article seventy-eight of the civil practice 11 law and rules. All fees collected by the commissioner under this section 12 shall be retained by the department for the purposes outlined herein. 13 § 499-vvvv. Assessment of local energy-related public utility mass 14 real property. Subject to the provisions of section four hundred nine- 15 ty-nine-ccccc of this title, the assessor in each city, town and village 16 and in each county having a department of assessment shall annually 17 assess all local energy-related public utility mass real property situ- 18 ated in such city, town, village or county, as the case may be. Where a 19 village has enacted a local law as provided in subdivision three of 20 section fourteen hundred two of this chapter, the town or county asses- 21 sor shall apportion that part of the assessment of local energy-related 22 public utility mass real property in the town or county to the village 23 for village tax purposes. 24 § 499-wwww. Assessment ceiling. 1. To determine the extent to which 25 local energy-related public utility mass real property shall be exempt 26 under this title, an assessment ceiling for the local energy-related 27 public utility mass real property shall be established annually by the 28 commissioner as follows: 29 (a) Determine: (i) the local energy-related public utility mass real 30 property value in accordance with the provisions of section four hundred 31 ninety-nine-yyyy of this title; and (ii) the equalization rate factor 32 for the local energy-related public utility mass real property in 33 accordance with the provisions of section four hundred ninety-nine-zzzz 34 of this title. 35 (b) Multiply the local energy-related public utility mass real proper- 36 ty value by the equalization rate factor. 37 The result shall be the assessment ceiling. 38 2. The valuation date for all local energy-related public utility mass 39 real property shall be January first of the year preceding the year in 40 which the assessment roll on which such property is to be assessed, 41 completed and filed in the office of the city or town clerk. The taxa- 42 ble status for all local energy-related public utility mass real proper- 43 ty shall be based upon its condition and ownership as of the taxable 44 status date applicable to the assessment roll on which it is to appear. 45 3. For assessment rolls with taxable status dates in the years two 46 thousand twenty-four, two thousand twenty-five, two thousand twenty-six 47 and two thousand twenty-seven, the commissioner shall establish no 48 assessment ceiling that is below the lower limit or above the upper 49 limit specified in this subdivision, except that the commissioner may 50 establish assessment ceilings below such lower limit or above such upper 51 limit to take into account any change in level of assessment and/or to 52 take into account any additions or retirements to energy-related public 53 utility mass real property or litigation affecting the value or taxable 54 status of the local energy-related public utility mass real property 55 initiated prior to the effective date of this title.S. 5325--B 4 1 (a) For assessment rolls with taxable status dates in two thousand 2 twenty-four, the assessment ceiling shall not be less than ninety 3 percent or more than one hundred ten percent of the assessment of such 4 local energy-related public utility mass real property appearing on the 5 municipal assessment roll with a taxable status date occurring in the 6 year two thousand twenty-one. 7 (b) For assessment rolls with taxable status dates in two thousand 8 twenty-five, the assessment ceiling shall not be less than seventy-five 9 percent or more than one hundred twenty-five percent of the assessment 10 of such local energy-related public utility mass real property appearing 11 on the municipal assessment roll with a taxable status date occurring in 12 the year two thousand twenty-one. 13 (c) For assessment rolls with taxable status dates in two thousand 14 twenty-six, the assessment ceiling shall not be less than fifty percent 15 or more than one hundred fifty percent of the assessment of such local 16 energy-related public utility mass real property appearing on the munic- 17 ipal assessment roll with a taxable status date occurring in the year 18 two thousand twenty-one. 19 (d) For assessment rolls with taxable status dates in two thousand 20 twenty-seven, the assessment ceiling shall not be less than twenty-five 21 percent or more than one hundred seventy-five percent of the assessment 22 of such local energy-related public utility mass real property appearing 23 on the municipal assessment roll with a taxable status date occurring in 24 the year two thousand twenty-one. 25 § 499-xxxx. Local energy-related public utility mass real property 26 value. The commissioner shall compute the local energy-related public 27 utility mass real property value as follows: 28 1. The local reproduction cost of the energy-related public utility 29 mass real property of each energy-related public utility mass real prop- 30 erty owner in every assessing unit is the cost of reproduction, less 31 depreciation of that energy-related public utility mass real property. 32 2. In ascertaining depreciation of property under this section, 33 consideration may be given to the age, physical condition, average 34 service lives of assets and other relevant factors. 35 3. Adjustments for economic or functional obsolescence shall only be 36 made upon application by an energy-related public utility mass real 37 property owner. Every such application shall be submitted with the annu- 38 al report required by section four hundred ninety-nine-ddddd of this 39 title. 40 § 499-yyyy. Equitable ratio of assessment. The commissioner and any 41 assessing authority shall be prohibited from assessing local energy-re- 42 lated public utility mass real property at a value that has a higher 43 ratio to the full value of the local energy-related public utility mass 44 real property than the ratio of assessed value of other real property in 45 the same assessment class and jurisdiction to its full value, as 46 provided in section three hundred five of this chapter. 47 § 499-zzzz. Equalization rate. In determining assessment ceilings, the 48 commissioner shall apply the final state equalization rate for the 49 assessment roll of the local assessing jurisdiction for which the ceil- 50 ing is established. If that final rate is not available, the commission- 51 er shall apply the most recent final state equalization rate for the 52 local assessing jurisdiction, except that if a special equalization rate 53 has been established as provided in title two of article twelve of this 54 chapter, such rate shall be applied. In the case of a special assessing 55 unit as defined in section eighteen hundred one of this chapter, theS. 5325--B 5 1 equalization rate to be applied shall be the applicable class equaliza- 2 tion rate. 3 § 499-aaaaa. Tentative determination of assessment ceiling; notice, 4 complaints and hearing. 1. Each year the commissioner shall make a 5 tentative determination of an assessment ceiling for all local energy- 6 related public utility mass real property. Thereafter, the commissioner 7 shall give notice, in writing or electronically, to each assessing unit 8 and each owner of local energy-related public utility mass real property 9 for which such tentative determination of an assessment ceiling shall 10 have been made, specifying the amount of such ceiling, and making avail- 11 able for inspection and copying the computations used to establish the 12 tentative assessment ceiling amount pursuant to the public officers law, 13 and setting forth the time and place where the commissioner or his or 14 her designee will meet to hear any complaint concerning such tentative 15 determination. Such notice shall be sent electronically and served in 16 writing at least forty-five days prior to the date specified for such 17 hearing. 18 2. A tentative assessment ceiling may be challenged before the commis- 19 sioner as follows: 20 (a) An owner of local energy-related public utility mass real property 21 or the local assessing jurisdiction objecting to a tentative ceiling 22 must serve a complaint upon the commissioner, in writing, and a copy 23 thereof upon the assessing unit or owner of local energy-related public 24 utility mass real property, as the case may be, at least ten days before 25 the date specified for the hearing. The complaint shall specify the 26 objections to such tentative determination. Service may be made either 27 in person or by mail. 28 (b) On or before the date specified for the hearing, an affidavit of 29 service shall be filed with the commissioner stating that service has 30 been made in accordance with the provisions of this section. 31 3. The commissioner or his or her designee shall meet at the time and 32 place specified in such notice set forth in subdivision one of this 33 section to hear complaints in relation to the tentative determination of 34 the assessment ceiling. The provisions of section five hundred twelve of 35 this chapter shall apply so far as may be practicable to a hearing under 36 this section. 37 § 499-bbbbb. Final determination of assessment ceiling; certificate. 38 1. After the hearing provided in section four hundred ninety-nine-aaaaa 39 of this title, the commissioner shall finally determine the assessment 40 ceiling for the local energy-related public utility mass real property 41 of each local energy-related public utility mass real property owner 42 situated in each assessing unit. 43 2. Notwithstanding that a complaint may not have been filed with 44 respect to a tentative determination of an assessment ceiling, the 45 commissioner shall give effect to any special equalization rate estab- 46 lished pursuant to section twelve hundred twenty-four of this chapter or 47 the final state equalization rate for the assessment roll for which the 48 ceiling is established as provided in section four hundred ninety-nine- 49 zzzz of this title prior to the date for the final determination of the 50 assessment ceiling. 51 3. No later than ten days before the last date prescribed by law for 52 the levy of taxes, the commissioner shall file a certificate setting 53 forth each assessment ceiling as finally determined with the assessor of 54 the appropriate assessing unit or the town or county assessor who 55 prepares a copy of the applicable part of the town or county assessment 56 roll for village tax purposes as provided in subdivision three ofS. 5325--B 6 1 section fourteen hundred two of this chapter. The commissioner shall, at 2 the same time, transmit to each owner of local energy-related public 3 utility mass real property for which such ceiling has been determined a 4 duplicate copy of such certificate. 5 4. Any final determination of an assessment ceiling by the commission- 6 er pursuant to subdivision one of this section shall be subject to judi- 7 cial challenge by an owner of local energy-related public utility mass 8 real property or a local assessing jurisdiction in a proceeding under 9 article seven of this chapter; provided however, the time to commence 10 such proceeding shall be within sixty days of the issuance of the final 11 assessment ceiling certificate and all questions of fact and law shall 12 be determined de novo. Any judicial proceeding shall be commenced in the 13 supreme court in the county of Albany. Nothing in this section shall 14 preclude a challenge of the assessed value established by a local 15 assessing jurisdiction with respect to local energy-related public util- 16 ity mass real property as otherwise provided in article seven of this 17 chapter. In any proceeding challenging an assessed value established by 18 a local assessing jurisdiction for local energy-related public utility 19 mass real property, the final certified assessment ceiling established 20 pursuant to subdivision one of this section shall not be considered by 21 the court. 22 § 499-ccccc. Application of assessment ceiling; computation of 23 exemption. 1. Upon receipt of a certificate setting forth the final 24 certified assessment ceiling for local energy-related public utility 25 mass real property, the assessor shall compare the assessed valuations 26 attributable to the local energy-related public utility mass real prop- 27 erty for each owner of local energy-related public utility mass real 28 property included in the assessment ceiling. Where the owner of the 29 local energy-related public utility mass real property reports informa- 30 tion by specific property identification to the commissioner or the 31 local assessing jurisdiction has implemented a system by the commission- 32 er standardizing the identity of energy-related public utility mass real 33 property on assessment rolls, such certified assessment ceilings shall 34 be provided by the commissioner, as set forth on the local assessing 35 jurisdiction's assessment rolls. Where the assessed valuation does not 36 exceed the final certified assessment ceiling, as set forth in the 37 certificate for the local energy-related public utility mass real prop- 38 erty, the assessor need not make any adjustment in such assessed valu- 39 ation. Provided, however, the assessed valuation exceeds the final 40 certified assessment ceiling, as set forth in the certificate, such 41 local energy-related public utility mass real property shall be exempt 42 from taxation to the extent of such excess and the assessor shall forth- 43 with reduce the assessments of such local energy-related public utility 44 mass real property, so that the taxable assessed valuation of such prop- 45 erty shall not exceed the certified assessment ceiling. All certificates 46 of assessment ceilings shall be attached to the assessment roll or filed 47 therewith as provided in article fifteen-C of this chapter. 48 2. The assessor is hereby authorized and directed to make the 49 reductions, if any, provided for in this section on the assessment roll 50 of the local assessing jurisdiction in which the local energy-related 51 public utility mass real property is located, notwithstanding the fact 52 that he or she may receive the certificate of the assessment ceiling 53 after the final completion, verification and filing of such assessment 54 roll. Other local officers, including school authorities, applying such 55 final assessment roll, are hereby authorized and directed, on the basis 56 of information which shall be provided by the assessor, to make theS. 5325--B 7 1 reductions provided for in this section on their respective tax rolls 2 prior to levy of tax or, if received after the tax rolls have been 3 established, to correct any tax levy of local energy-related public 4 utility mass real property to reflect such reduction. If the reduction 5 is made after the tax levy and payment of same by the owner of local 6 energy-related public utility mass real property, then such owner of 7 local energy-related public utility mass real property shall be entitled 8 to a refund in accordance with section seven hundred twenty-six of this 9 chapter. 10 3. In assessing units for which he or she is required by law to 11 prepare an assessment roll, the assessor of a county having a county 12 department of assessment shall perform all the acts prescribed for an 13 assessor by this title. Where a village has enacted a local law as 14 provided in subdivision three of section fourteen hundred two of this 15 chapter, the assessor of the town or county who prepares a copy of this 16 applicable part of the town or county assessment roll for village tax 17 purposes shall also perform the acts prescribed for assessors by this 18 title on behalf of the village. 19 § 499-ddddd. Reports to commissioner. 1. The commissioner may require 20 from an owner of a local energy-related public utility mass real proper- 21 ty an annual report that shall include such information and data that is 22 prescribed in regulation by the commissioner and is reasonable and 23 necessarily related to the establishment of a ceiling assessment by the 24 commissioner for the local energy-related public utility mass real prop- 25 erty, and which shall be in the same format and substance as required 26 for special franchise property pursuant to article six of this chapter. 27 Such reports shall be the same for similarly situated local energy-re- 28 lated public utility mass real property owners. 29 2. Every report required by or pursuant to this section shall be made 30 by a person authorized to prepare such reports and having knowledge of 31 the contents thereof, or who is authorized to obtain such information. 32 The commissioner may prepare and require the use of forms for making 33 such reports. 34 3. Any owner of local energy-related public utility mass real property 35 failing to file the annual report pursuant to this section within the 36 time specified by the commissioner shall not be entitled to judicial 37 review of an assessment ceiling that would have been the subject of such 38 report as provided in this title and shall be subject to a fine of one 39 hundred dollars for each day until such report is filed in accordance 40 with this section; provided, however, such fine shall not be applied as 41 a tax lien; and provided, further, such owner of local energy-related 42 public utility mass real property shall not be subject to any other fine 43 or penalty for a violation of this section. 44 4. In addition to the provisions of subdivision three of this section, 45 if an owner of local energy-related public utility mass real property 46 fails to furnish a report required by this section within the required 47 timeframe, the commissioner may commence a special proceeding in supreme 48 court to compel such owner to furnish such report. 49 5. If an owner of local energy-related public utility mass real prop- 50 erty fails to submit an annual report as required by this section, the 51 assessment ceiling on the next annual assessment roll shall be calcu- 52 lated using the best information available to the commissioner. 53 6. If an owner of local energy-related public utility mass real prop- 54 erty makes reasonable efforts to file an annual report, such owner shall 55 not be subject to any charge or fine pursuant to this section.S. 5325--B 8 1 § 499-eeeee. Inspection of accounts and property of public utilities. 2 1. The commissioner shall, upon reasonable prior notice, have access at 3 reasonable times to reasonable disclosure of accounts and records estab- 4 lished and maintained by a local energy-related public utility mass real 5 property owner relating to its local energy-related public utility mass 6 real property. 7 2. The commissioner shall, at reasonable times in the normal business 8 operations of the local energy-related public utility mass real property 9 owner, and with prior notice and appointment, and not otherwise limited 10 by federal law or regulations, have access to inspect locations where 11 the local energy-related public utility mass real property is situated. 12 § 4. (a) On or before January 1, 2027 and biennially thereafter, the 13 commissioner of taxation and finance, in consultation with owners of 14 energy-related public utility mass real property, shall examine and 15 evaluate whether energy-related public utility mass real property 16 continues to constitute a "specialty" and, if not, such commissioner 17 shall examine and evaluate alternative valuation methodologies to the 18 reproduction cost less depreciation methodology to compute the value of 19 local energy-related public utility mass real property, including, but 20 not limited to, the three valuation methodologies (income, sales compar- 21 ison and cost approaches), with reconciliation in accordance with 22 nationally recognized professional appraisal practice standards. 23 (b) The commissioner of taxation and finance shall report to the 24 governor, the temporary president of the senate and the speaker of the 25 assembly his or her findings and recommendations, including any amend- 26 ment of statute or regulation, related to the examination and evaluation 27 pursuant to subdivision (a) of this section, no later than December 28 thirty-first of the second year of such biennial period. 29 § 5. This act shall take effect on January 1, 2021 and shall apply to 30 assessment rolls with taxable status dates occurring on or after the 31 year 2024; provided, however, that the amendments to paragraph (a) of 32 subdivision 2 of section 200-a of the real property tax law made by 33 section one of this act shall not affect the expiration and reversion of 34 such section pursuant to section 4 of chapter 475 of the laws of 2013, 35 as amended, when upon such date the provisions of section two of this 36 act shall take effect.
