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S02475 Summary:

BILL NOS02475
 
SAME ASSAME AS A00042
 
SPONSORPARKER
 
COSPNSR
 
MLTSPNSR
 
Add §28, Pub Serv L; add §487-b, RPT L
 
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.
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S02475 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2475
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                    January 21, 2025
                                       ___________
 
        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed to the Committee on  Energy  and  Telecommuni-
          cations
 
        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:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00111-01-5

        S. 2475                             2
 
     1    (a)  "Energy-related public utility real property" means real property
     2  that is owned by a utility corporation and used in the  storage,  trans-
     3  mission  and  distribution  of electricity, or steam including conduits,
     4  cables, lines, wires, poles, mains, pipes, substations, tanks,  supports
     5  and  enclosures  for  electrical  conductors located on, above and below
     6  real property.
     7    (b) "Department" means the department of public service.
     8    (c) "Utility corporation" shall have the same meaning  as  defined  in
     9  section two of the public service law.
    10    (d)  "State climate goals" shall mean the climate justice and emission
    11  reduction goals in article seventy-five of the  environmental  conserva-
    12  tion  law  and  the renewable energy goals in section sixty-six-p of the
    13  public service law.
    14    2. Energy-related public utility real property, the primary purpose of
    15  which is to aid in meeting state climate goals,  shall  be  exempt  from
    16  taxation,  special  ad  valorem  levies,  and  special assessments. Such
    17  exemption shall remain in effect until such energy-related public utili-
    18  ty real property is retired and removed from service.
    19    3. Energy-related public utility real  property  owned  by  a  utility
    20  corporation prior to January first, two thousand twenty-five, the prima-
    21  ry  purpose  of which is to aid in meeting state climate goals, shall be
    22  exempt from taxation, special ad valorem levies, and special assessments
    23  to the extent of any increase in the value  thereof  by  reason  of  the
    24  inclusion of new energy-related public utility real property designed to
    25  meet  state  climate  goals. Such exemption shall remain in effect until
    26  such assets or installations are retired and removed from service.
    27    4. The commissioner, in consultation with the department, shall, after
    28  notice and opportunity  for  public  comment,  provide  definitions  and
    29  guidelines  for  the  eligibility for exemption of energy-related public
    30  utility real property described in subdivisions two and  three  of  this
    31  section.  No  energy-related public utility real property shall be enti-
    32  tled to any exemption from  taxation  under  this  section  unless  such
    33  project  meets  the  guidelines set by the commissioner, in consultation
    34  with the department, and all other applicable  provisions  of  law.  The
    35  commissioner,  in  consultation  with  the  department,  shall determine
    36  adherence to such definitions and guidelines for  each  application  and
    37  shall certify or withhold certification for each application.
    38    5.  Such  exemption shall be granted upon application by the owner and
    39  certification by the commissioner, in consultation with the  department.
    40  Such  application by the owner of the energy-related public utility real
    41  property shall be on a form prescribed and made available by the commis-
    42  sioner, in consultation with the department. The applicant shall furnish
    43  such information as the  commissioner  shall  require.  The  application
    44  shall  be  filed with the assessor of the appropriate county, city, town
    45  or village having the power to assess property for taxation on or before
    46  the taxable status date of such county, city, town or village. A copy of
    47  such application shall be filed with the commissioner who shall  provide
    48  it to the department.
    49    6.  The  assessor  shall approve applications certified by the commis-
    50  sioner.  In the event that energy-related public utility  real  property
    51  granted an exemption pursuant to this section ceases to be used primari-
    52  ly for eligible purposes, the exemption granted pursuant to this section
    53  shall cease.
    54    7.  Any  net decrease in a utility company's real property tax expense
    55  resulting from the provisions of this section shall inure to the benefit
    56  of the ratepayers of such company.

        S. 2475                             3
 
     1    § 3. This act shall take effect on the first of January next  succeed-
     2  ing  the  date  on  which  it shall have become a law and shall apply to
     3  taxable years beginning on or after such  date.  Effective  immediately,
     4  the  addition,  amendment and/or repeal of any rule or regulation neces-
     5  sary  for  the  implementation  of  this  act  on its effective date are
     6  authorized to be made and completed on or before such effective date.
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