Bill Text: NY S07849 | 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) 2020-02-26 - REFERRED TO CITIES [S07849 Detail]
Download: New_York-2019-S07849-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7849 IN SENATE February 26, 2020 ___________ Introduced by Sens. GOUNARDES, 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 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. LBD08403-01-9S. 7849 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 administrative 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 YorkS. 7849 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 paragraph 19 two-a of subdivision c of section 11-269 of this part; and provided, 20 further, that such benefits shall commence upon the effective date of 21 this paragraph. A "peaking unit" under this part shall include all real 22 property used in connection with the generation of electricity, and any 23 facilities used to interconnect the peaking unit with the electric tran- 24 smission or distribution system, but shall not include any facilities 25 that are part of the electric transmission or distribution system; it 26 may be comprised of a single turbine and generator or multiple turbines 27 and generators located at the same site. Notwithstanding any provision 28 of this part to the contrary, a peaking unit shall be considered indus- 29 trial property, provided however that the benefit period for a peaking 30 unit shall be as set forth in paragraph two-a of subdivision c of 31 section 11-269 of this part. 32 § 4. This act shall take effect immediately.
