Increases the value of the exemption for certain solar or wind energy systems or farm waste energy systems; provides that where the municipality does not tax at full value such exemption shall be pro-rated.
STATE OF NEW YORK
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S. 3516--A A. 5643--A
2011-2012 Regular Sessions
SENATE - ASSEMBLY
February 24, 2011
___________
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Local Govern-
ment -- recommitted to the Committee on Local Government in accordance
with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred
to the Committee on Real Property Taxation -- recommitted to the
Committee on Real Property Taxation in accordance with Assembly Rule
3, sec. 2 -- 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 increasing the
value of the exemption for certain solar or wind energy systems or
farm waste energy systems
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 487 of the real property tax law, as amended by
2 chapter 515 of the laws of 2002, subdivision 5 as amended by chapter 366
3 of the laws of 2010, subdivisions 6 and 8 as further amended by section
4 1 of part W of chapter 56 of the laws of 2010 and subdivision 9 as added
5 by chapter 608 of the laws of 2002, is amended to read as follows:
6 § 487. Exemption from taxation for certain solar or wind energy
7 systems or farm waste energy systems. 1. As used in this section:
8 (a) "Solar or wind energy equipment" means collectors, controls, ener-
9 gy storage devices, heat pumps and pumps, heat exchangers, windmills,
10 and other materials, hardware or equipment necessary to the process by
11 which solar radiation or wind is (i) collected, (ii) converted into
12 another form of energy such as thermal, electrical, mechanical or chemi-
13 cal, (iii) stored, (iv) protected from unnecessary dissipation and (v)
14 distributed. It does not include pipes, controls, insulation or other
15 equipment which are part of the normal heating, cooling, or insulation
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03848-03-2
S. 3516--A 2 A. 5643--A
1 system of a building. It does include insulated glazing or insulation to
2 the extent that such materials exceed the energy efficiency standards
3 required by law.
4 (b) "Solar or wind energy system" means an arrangement or combination
5 of solar or wind energy equipment designed to provide heating, cooling,
6 hot water, or mechanical, chemical, or electrical energy by the
7 collection of solar or wind energy and its conversion, storage,
8 protection and distribution.
9 (c) "Authority" means the New York state energy research and develop-
10 ment authority.
11 (d) ["Incremental cost" means the increased cost of a solar or wind
12 energy system or farm waste energy system or component thereof which
13 also serves as part of the building structure, above that for similar
14 conventional construction, which enables its use as a solar or wind
15 energy or farm waste energy system or component.
16 (e)] "Farm waste electric generating equipment" means equipment that
17 generates electric energy from biogas produced by the anaerobic
18 digestion of agricultural waste, such as livestock manure, farming waste
19 and food processing wastes with a rated capacity of not more than four
20 hundred kilowatts that is (i) manufactured, installed and operated in
21 accordance with applicable government and industry standards, (ii)
22 connected to the electric system and operated in conjunction with an
23 electric corporation's transmission and distribution facilities, (iii)
24 operated in compliance with the provisions of section sixty-six-j of the
25 public service law, (iv) fueled at a minimum of ninety percent on an
26 annual basis by biogas produced from the anaerobic digestion of agricul-
27 tural waste such as livestock manure materials, crop residues and food
28 processing wastes, and (v) fueled by biogas generated by anaerobic
29 digestion with at least seventy-five percent by weight of its feedstock
30 being livestock manure materials on an annual basis.
31 [(f)] (e) "Farm waste energy system" means an arrangement or combina-
32 tion of farm waste electric generating equipment or other materials,
33 hardware or equipment necessary to the process by which agricultural
34 waste biogas is produced, collected, stored, cleaned, and converted into
35 forms of energy such as thermal, electrical, mechanical or chemical and
36 by which the biogas and converted energy are distributed on-site. It
37 does not include pipes, controls, insulation or other equipment which
38 are part of the normal heating, cooling or insulation system of a build-
39 ing.
40 2. Real property which includes a solar or wind energy system or farm
41 waste energy system approved in accordance with the provisions of this
42 section shall be exempt from taxation to the extent of any increase in
43 the value thereof by reason of the inclusion of such solar or wind ener-
44 gy system or farm waste energy system for a period of fifteen years.
45 When a solar or wind energy system or components thereof or farm waste
46 energy system also serve as part of the building structure, the
47 [increase in value which] total cost of the system shall be exempt from
48 taxation [shall be equal to the assessed value attributable to such
49 system or components multiplied by the ratio of the incremental cost of
50 such system or components to the total cost of such system or compo-
51 nents]. The exemption shall be equal to the total cost of the system.
52 Such exemption shall be subtracted from the total assessed value of the
53 real property. The total exemption in no case shall exceed fifty thou-
54 sand dollars. Where the municipality does not tax at full value, such
55 exemption shall be pro-rated.
S. 3516--A 3 A. 5643--A
1 3. The president of the authority shall provide definitions and guide-
2 lines for the eligibility for exemption of the solar and wind energy
3 equipment and systems and farm waste energy equipment and systems
4 described in paragraphs (a) and (b) of subdivision one of this section.
5 4. No solar or wind energy system or farm waste energy system shall be
6 entitled to any exemption from taxation under this section unless such
7 system meets the guidelines set by the president of the authority and
8 all other applicable provisions of law.
9 5. The exemption granted pursuant to this section shall only be appli-
10 cable to solar or wind energy systems or farm waste energy systems which
11 are (a) existing or constructed prior to July first, nineteen hundred
12 eighty-eight or (b) constructed subsequent to January first, nineteen
13 hundred ninety-one and prior to January first, two thousand [fifteen]
14 twenty-three.
15 6. Such exemption shall be granted only upon application by the owner
16 of the real property on a form prescribed and made available by the
17 commissioner in cooperation with the authority. The applicant shall
18 furnish such information as the commissioner shall require. The applica-
19 tion shall be filed with the assessor of the appropriate county, city,
20 town or village on or before the taxable status date of such county,
21 city, town or village. A copy of such application shall be filed with
22 the authority.
23 7. If the assessor is satisfied that the applicant is entitled to an
24 exemption pursuant to this section, he or she shall approve the applica-
25 tion and enter the taxable assessed value of the parcel for which an
26 exemption has been granted pursuant to this section on the assessment
27 roll with the taxable property, with the amount of the exemption as
28 computed pursuant to subdivision two of this section in a separate
29 column. In the event that real property granted an exemption pursuant to
30 this section ceases to be used primarily for eligible purposes, the
31 exemption granted pursuant to this section shall cease.
32 8. Notwithstanding the provisions of subdivision two of this section,
33 a county, city, town or village may by local law or a school district,
34 other than a school district to which article fifty-two of the education
35 law applies, may by resolution provide that no exemption under this
36 section shall be applicable within its jurisdiction with respect to any
37 solar or wind energy system or farm waste energy system constructed
38 subsequent to January first, nineteen hundred ninety-one or the effec-
39 tive date of such local law, ordinance or resolution, whichever is
40 later. A copy of any such local law or resolution shall be filed with
41 the commissioner and with the president of the authority.
42 9. (a) A county, city, town, village or school district, except a
43 school district under article fifty-two of the education law, that has
44 not acted to remove the exemption under this section may require the
45 owner of a property which includes a solar or wind energy system which
46 meets the requirements of subdivision four of this section, to enter
47 into a contract for payments in lieu of taxes. Such contract may require
48 annual payments in an amount not to exceed the amounts which would
49 otherwise be payable but for the exemption under this section.
50 (b) The payment in lieu of a tax agreement shall not operate for a
51 period of more than fifteen years, commencing in each instance from the
52 date on which the benefits of such exemption first become available and
53 effective.
54 § 2. This act shall take effect immediately.
