A01982 Summary:

BILL NO    A01982 

SAME AS    No same as

SPONSOR    Morelle (MS)

COSPNSR    Koon, DelMonte, Hoyt

MLTSPNSR   Cook, Destito, Quinn

Add S431, RPT L

Provides an exemption from real property taxes, levies and assessments for
telecommunications companies that place fiber optic cable in service.

A01982 Actions:

BILL NO    A01982 

01/14/2009 referred to real property taxation
01/06/2010 referred to real property taxation

A01982 Votes:

A01982 Memo:

 BILL NUMBER:  A1982

 TITLE OF BILL :  An act to amend the real property tax law, in
relation to providing an exemption against fiber optic cable
assessments for telecommunications companies

 PURPOSE OR GENERAL IDEA OF BILL :  Provides an exemption from real
property taxes, levies and assessments for telecommunications
companies that place fiber optic cable in service. This proposal will
provide important incentives for investing in New York's
communications infrastructure and help ensure New York's position in
the global information-based economy.

 SUMMARY OF SPECIFIC PROVISIONS :  Adds a new section 431 to the real
property tax law to create incentives in the form of exemptions for
businesses for the placement of fiber-optic cable used in the
deployment of broad band technology.  Telecommunication businesses
that deploy such equipment would be eligible for a tax exemption based
on the value of any fiber optic cable used for the transmission of
information at a high speed. The exemption would be 100 percent for
the first 8 years and would then be phased out in twenty percent
intervals until it is completely phased out in year 13.

 JUSTIFICATION :  Critics say broad band providers are moving too
slowly to offer affordable high-speed broad band services to many
parts of the state, particularly rural areas and small towns. While
broad band providers are currently rolling out broad band services,
this incentive will encourage faster deployment of these services.

Expanding the availability of fiber optic broad band services will act
as an economic incentive for education, nano-technology, the health
industry, finance, banking, real estate, new Internet based ventures,
retail, and communications, both public and private. Virtually every
service based industry can be enhanced through development of a
high-speed fiber optic system.

New York State's economy is based, more than ever, on innovation which
depends on the flow of information. It is in the state's best interest
to be ahead of our competitors in the deployment of broad band
telecommunications networks. New York could, and should, encourage
rapid deployment of broad band by exempting new installations of fiber
optic cable by companies from local property taxes for a long enough
period of time to allow an appropriate return on these costly
investments.

This legislation would provide a strong incentive for rapid growth of
broad band, including rural and other areas that otherwise may wait
many years for advanced connections to the global network. Such an
exemption would help speed those connections, and would not take away
any revenue from what localities now collect in property tax.

 PRIOR LEGISLATIVE HISTORY : A.11070/S.71670f2005-2006.  A2436 of
2007/2008 - referred to real property taxation

 FISCAL IMPLICATIONS : None.

 LOCAL FISCAL IMPLICATIONS :  Temporary delay in payment of applicable
real property taxes. Estimated at $30 in savings for every $1000 spent
on fiber cables.

 EFFECTIVE DATE : Immediately.