Relates to the exemption from taxation for certain solar or wind energy systems or farm waste energy systems; specifies that construction of a solar or wind energy system or a farm waste energy system is deemed to begin at the full execution of an interconnection agreement with a utility; requires the taxing jurisdiction to notify the owner or developer of the contract requirement for payments in lieu of taxes.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9446A
SPONSOR: Paulin TITLE OF BILL: An act to amend the real property tax law, in relation
to exemption from taxation for certain solar or wind energy systems or
farm waste energy systems
PURPOSE: To extend until 2025 a real property tax exemption for solar,
wind and farm waste energy systems at local option.
SUMMARY OF PROVISIONS:
Section 1 extends until 2025 the real property tax exemption for solar,
wind and farm waste energy systems at local option.
Section 2 defines start of construction for such systems as the
execution of an interconnection agreement with the utility company and
requires written notification of such execution to the local jurisdic-
tion by the owner or developer.
Section 3 clarifies that upon notification of the start of construction,
a taxing jurisdiction must notify the developer or owner within 60 days
if such jurisdiction's intention is to require an agreement for payment
in lieu of taxes.
Section 4 provides the effective Date
JUSTIFICATION: The option to exempt wind, solar and farm waste energy
systems from real property taxes, has helped to spur the development
of,renewable energy across New York State and in turn contributed to
reductions in harmful emissions. The extension contemplated in this bill
will provide surety to developers of renewable energy that the option
for a real property tax exemption will exist well into the future, while
also clarifying the responsibilities of the developer and the local
taxing jurisdiction.
This bill requires that any local law.or resolution that would deny the
right to a tax exemption must be passed before work on the system in
question has begun construction and that once notified of the start of
construction a taxing jurisdiction will have a specific amount of time
to require a payment in lieu of taxes (PILOT). These additions to the
law provide surety and a guarantee of fair play for both the taxing
jurisdiction and the developer, and such assurances are important so
that the rules are clear and not subject to change mid-stream.
FISCAL IMPLICATIONS: None
HISTORY: This is a new bill.
EFFECTIVE DATE: This bill shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9446--A
IN ASSEMBLY
April 30, 2014
___________
Introduced by M. of A. PAULIN, BUCHWALD, LIFTON, BARRETT, ROSENTHAL,
STIRPE, LUPARDO -- read once and referred to the Committee on Real
Property Taxation -- reported and referred to the Committee on Ways
and Means -- 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 exemption from
taxation 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. Subdivision 5 of section 487 of the real property tax law,
2 as amended by chapter 366 of the laws of 2010, is amended to read as
3 follows:
4 5. The exemption granted pursuant to this section shall only be appli-
5 cable to solar or wind energy systems or farm waste energy systems which
6 are (a) existing or constructed prior to July first, nineteen hundred
7 eighty-eight or (b) constructed subsequent to January first, nineteen
8 hundred ninety-one and prior to January first, two thousand [fifteen]
9 twenty-five.
10 § 2. Subdivision 8 of section 487 of the real property tax law, as
11 amended by chapter 515 of the laws of 2002 and as further amended by
12 subdivision (b) of section 1 of part W of chapter 56 of the laws of
13 2010, is amended to read as follows:
14 8. (a) Notwithstanding the provisions of subdivision two of this
15 section, a county, city, town or village may by local law or a school
16 district, other than a school district to which article fifty-two of the
17 education law applies, may by resolution provide that no exemption under
18 this section shall be applicable within its jurisdiction with respect to
19 any solar or wind energy system or farm waste energy system
20 [constructed] which began construction subsequent to January first,
21 nineteen hundred ninety-one or the effective date of such local law,
22 ordinance or resolution, whichever is later. A copy of any such local
23 law or resolution shall be filed with the commissioner and with the
24 president of the authority.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14723-03-4
A. 9446--A 2
1 (b) Construction of a solar or wind energy system or a farm waste
2 energy system shall be deemed to have begun upon the full execution of a
3 contract or interconnection agreement with a utility; provided however,
4 that if such contract or interconnection agreement requires a deposit to
5 be made, then construction shall be deemed to have begun when the
6 contract or interconnection agreement is fully executed and the deposit
7 is made. The owner or developer of such a system shall provide written
8 notification to the appropriate local jurisdiction or jurisdictions upon
9 execution of the contract or the interconnection agreement.
10 § 3. Paragraph (a) of subdivision 9 of section 487 of the real proper-
11 ty tax law, as added by chapter 608 of the laws of 2002, is amended to
12 read as follows:
13 (a) A county, city, town, village or school district, except a school
14 district under article fifty-two of the education law, that has not
15 acted to remove the exemption under this section may require the owner
16 of a property which includes a solar or wind energy system which meets
17 the requirements of subdivision four of this section, to enter into a
18 contract for payments in lieu of taxes. Such contract may require annual
19 payments in an amount not to exceed the amounts which would otherwise be
20 payable but for the exemption under this section. If the owner or devel-
21 oper of such a system provides written notification to a taxing juris-
22 diction of its intent to construct such a system, then in order to
23 require the owner or developer of such system to enter into a contract
24 for payments in lieu of taxes, such taxing jurisdiction must notify such
25 owner or developer of its intent to require a contract for payments in
26 lieu of taxes within sixty days of receiving the written notification.
27 § 4. This act shall take effect immediately.
