senate Bill S5234

Relates to utility real property

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 14 / May / 2013
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 04 / Jun / 2013
    • 1ST REPORT CAL.1081
  • 05 / Jun / 2013
    • 2ND REPORT CAL.
  • 10 / Jun / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • COMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 28 / May / 2014
    • 1ST REPORT CAL.919
  • 29 / May / 2014
    • 2ND REPORT CAL.
  • 02 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Relates to utility real property.

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Bill Details

Versions:
S5234
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Public Service Law
Laws Affected:
Amd §2, add §73, Pub Serv L; amd §§1802 & 1805, add §1802-a, RPT L

Votes

10
0
10
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Energy and Telecommunications committee vote details

Sponsor Memo

BILL NUMBER:S5234

TITLE OF BILL: An act to amend the public service law and the real
property tax law, in relation to utility real property

PURPOSE OR GENERAL IDEA OF BILL: To provide for the merger of class
three and four into a new single class for the special assessing unit
of New York city. The merger of class shares of present classes three
and four results in no revenue loss to New York city.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends the public service law to add a
definition of "utility real property".

Section 2 of the bill amends the public service law in relation to
data on utility real property.

Sections 3, 4 and 5 of the bill amend Article 18 of the Real Property
Tax Law to eliminate the definition and references to the utility
property class and to create a three class system with the present
class three and class four merged in New York city.

Section 6 of the bill is the effective date.

JUSTIFICATION: In New York City, Con Edison constitutes seventy seven
percent of the assessed valuation of class three. Reductions in
assessed values have produced little or no tax relief because of
increases in the class three tax rates which have nullified the
assessment reductions. Most important, lower property taxes for public
utilities mean lower energy costs which provides relief to utility
customers and helps New York City attract and retain business.

As a practical matter because of the limited number of taxpayers in
the class there is no way under existing law for the public utilities
to challenge the assessed valuations of their properties within the
separate utility class and permanently reduce their property taxes
below the 1981-82 fixed share of the real property tax levy. This is
regardless of how meritorious their case may be.

Even the relief provided by the 1990 amendment to the real property
tax law which permitted land, buildings, and structures to be
transferred to class four from class three, did not include a great
portion of public utility property, mainly the special franchise
properties which are located in the public streets and ways.

This proposed legislation does not purport to create a fully equitable
taxation system among all classes of taxpayers in the special
assessing unit, but it would at least place public utilities on the
same basis as other commercial and industrial taxpayers.

More important, lower property taxes for public utilities mean lower
energy costs which in turn will help New York city keep existing
business and attract new businesses as well as give some relief to all
existing customers.

PRIOR LEGISLATIVE HISTORY: New bill.


EFFECTIVE DATE: Immediately and applicable to assessment rolls with a
taxable status date following its effective date.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5234

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 14, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- 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 utility real property

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 2 of the public service law is amended by adding  a
new subdivision 28 to read as follows:
  28.  THE TERM "UTILITY REAL PROPERTY" SHALL MEAN UTILITY REAL PROPERTY
AS SUCH TERM IS DEFINED IN SECTION EIGHTEEN  HUNDRED  ONE  OF  THE  REAL
PROPERTY TAX LAW.
  S  2.  The public service law is amended by adding a new section 73 to
read as follows:
  S 73. COORDINATION WITH THE DEPARTMENT OF TAXATION  AND  FINANCE.  FOR
THE  PURPOSE  OF  DETERMINING POTENTIAL RATEPAYER IMPACT, THE COMMISSION
MAY, AT ITS DISCRETION, COORDINATE WITH THE COMMISSIONER OF THE  DEPART-
MENT  OF TAXATION AND FINANCE TO OBTAIN DATA RELATING TO THE CLASSIFICA-
TION OF UTILITY REAL PROPERTY PURSUANT TO SECTIONS EIGHTEEN HUNDRED  TWO
AND EIGHTEEN HUNDRED TWO-A OF THE REAL PROPERTY TAX LAW.
  S 3. The section heading and the opening paragraph of subdivision 1 of
section  1802 of the real property tax law, the section heading as added
by chapter 1057 of the laws of 1981 and the opening paragraph of  subdi-
vision  1  as  separately amended by chapters 123 and 529 of the laws of
1990, are amended to read as follows:
  Classification of real  property  in  a  special  assessing  unit  NOT
LOCATED WHOLLY WITHIN A CITY.
  All  real  property,  for  the  purposes of this article, in a special
assessing unit NOT LOCATED WHOLLY WITHIN A CITY shall be  classified  as
follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10792-01-3

S. 5234                             2

  S  4.  The  real  property  tax law is amended by adding a new section
1802-a to read as follows:
  S  1802-A. CLASSIFICATION OF REAL PROPERTY IN A SPECIAL ASSESSING UNIT
LOCATED WHOLLY WITHIN A CITY. 1. ALL REAL PROPERTY, FOR THE PURPOSES  OF
THIS  ARTICLE,  IN A SPECIAL ASSESSING UNIT LOCATED WHOLLY WITHIN A CITY
SHALL BE CLASSIFIED AS FOLLOWS:
  CLASS ONE: (A) ALL ONE, TWO AND THREE FAMILY RESIDENTIAL REAL  PROPER-
TY,  INCLUDING  SUCH  DWELLINGS USED IN PART FOR NONRESIDENTIAL PURPOSES
BUT WHICH ARE USED PRIMARILY FOR RESIDENTIAL PURPOSES, EXCEPT SUCH PROP-
ERTY HELD IN COOPERATIVE OR CONDOMINIUM FORMS OF  OWNERSHIP  OTHER  THAN
(I)  PROPERTY DEFINED IN SUBPARAGRAPHS (B) AND (C) OF THIS PARAGRAPH AND
(II) PROPERTY WHICH CONTAINS NO MORE THAN THREE DWELLING UNITS  HELD  IN
CONDOMINIUM FORM OF OWNERSHIP AND WHICH WAS CLASSIFIED WITHIN THIS CLASS
ON  A  PREVIOUS  ASSESSMENT ROLL; AND PROVIDED THAT, NOTWITHSTANDING THE
PROVISIONS OF PARAGRAPH (G) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED
TWO OF THIS CHAPTER, A MOBILE HOME OR A TRAILER SHALL NOT BE  CLASSIFIED
WITHIN  THIS  CLASS UNLESS IT IS OWNER-OCCUPIED AND SEPARATELY ASSESSED;
AND (B) RESIDENTIAL REAL PROPERTY NOT MORE THAN THREE STORIES IN  HEIGHT
HELD  IN  CONDOMINIUM  FORM OF OWNERSHIP, PROVIDED THAT NO DWELLING UNIT
THEREIN PREVIOUSLY WAS ON AN ASSESSMENT ROLL AS A DWELLING UNIT IN OTHER
THAN CONDOMINIUM FORM OF OWNERSHIP; AND (C)  RESIDENTIAL  REAL  PROPERTY
CONSISTING  OF  ONE FAMILY HOUSE STRUCTURES OWNED BY THE OCCUPANT, SITU-
ATED ON LAND HELD IN COOPERATIVE OWNERSHIP BY OWNER OCCUPIERS,  PROVIDED
THAT:  (I)  SUCH HOUSE STRUCTURES AND LAND CONSTITUTED BUNGALOW COLONIES
IN EXISTENCE PRIOR TO NINETEEN HUNDRED FORTY; AND (II) THE LAND IS  HELD
IN  COOPERATIVE OWNERSHIP FOR THE SOLE PURPOSE OF MAINTAINING ONE FAMILY
RESIDENCES FOR MEMBERS' OWN USE; AND (D) ALL VACANT LAND LOCATED  WITHIN
A  SPECIAL  ASSESSING  UNIT  WHICH IS A CITY OTHER THAN SUCH LAND IN THE
BOROUGH OF MANHATTAN SOUTH OF OR ADJACENT TO THE  SOUTH  SIDE  OF  110TH
STREET,  PROVIDED  THAT ANY SUCH VACANT LAND WHICH IS NOT ZONED RESIDEN-
TIAL MUST BE SITUATED IMMEDIATELY ADJACENT TO PROPERTY IMPROVED  WITH  A
RESIDENTIAL  STRUCTURE  AS  DEFINED IN SUBPARAGRAPHS (A) AND (B) OF THIS
PARAGRAPH, BE OWNED BY THE SAME OWNER AS SUCH IMMEDIATELY ADJACENT RESI-
DENTIAL PROPERTY IMMEDIATELY PRIOR TO AND SINCE JANUARY FIRST,  NINETEEN
HUNDRED  EIGHTY-NINE,  AND  HAVE A TOTAL AREA NOT EXCEEDING TEN THOUSAND
SQUARE FEET.
  CLASS TWO: ALL OTHER RESIDENTIAL REAL PROPERTY WHICH IS NOT DESIGNATED
AS CLASS ONE, EXCEPT HOTELS AND  MOTELS  AND  OTHER  SIMILAR  COMMERCIAL
PROPERTY.
  CLASS  THREE: ALL OTHER REAL PROPERTY WHICH IS NOT DESIGNATED AS CLASS
ONE OR CLASS TWO.
  2. IN ADDITION TO ANY REQUIREMENTS OF LAW OR RULE OF THE COMMISSIONER,
THE ASSESSMENT ROLL SHALL CONTAIN A SEPARATE COLUMN FOR THE ENTRY OF THE
CLASS DESIGNATION REQUIRED BY THIS SECTION. THE ASSESSOR SHALL ENTER THE
APPROPRIATE CLASS DESIGNATION IN THIS SECTION FOR EACH PARCEL LISTED  ON
THE ASSESSMENT ROLL.
  3.  THE  DETERMINATION  OF  INCLUSION  WITHIN A CLASS PURSUANT TO THIS
SECTION SHALL BE  SUBJECT  TO  ADMINISTRATIVE  AND  JUDICIAL  REVIEW  AS
PROVIDED BY LAW FOR THE REVIEW OF ASSESSMENTS.
  S  5.  Subdivision  3 of section 1805 of the real property tax law, as
amended by chapter 143 of the laws of 1989, and as  further  amended  by
subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
2010, is amended to read as follows:
  3. If the assessment appearing on an assessment roll completed  on  or
after  January  first,  nineteen  hundred  eighty-two for any parcel not
subject to the provisions of subdivision one or  two  of  this  section,

S. 5234                             3

other  than  a  parcel  classified in class three IN A SPECIAL ASSESSING
UNIT NOT LOCATED WHOLLY WITHIN THE CITY, is greater than the  assessment
appearing  on  the  previous  year's  assessment roll the assessor shall
determine  a transition assessment for such parcel for the first assess-
ment roll on which such greater assessment appears and for each  of  the
succeeding  four  assessment  rolls  by computing the difference between
such greater assessment and the assessment appearing  on  such  previous
year's  assessment  roll  and  adding  the following percentages of such
difference to the assessment appearing on such previous  year's  assess-
ment  roll: in the first year, twenty percent; in the second year, forty
percent; in the third year, sixty percent; in the  fourth  year,  eighty
percent;  and  in the fifth year, one hundred percent. If the assessment
of a parcel is increased during a period for  which  transition  assess-
ments  have  been established because of any prior assessment increases,
such new increase shall be phased-in over  a  five-year  period  as  set
forth  in  this subdivision, and such phased-in increases shall be added
to the transitional assessments previously  established  for  the  prior
increase;  provided,  however,  that  if in any year any such transition
assessment exceeds the actual assessment for such year, taxes imposed on
such parcel for such year shall be based on such lesser  actual  assess-
ment. Notwithstanding the foregoing, during the period of any such tran-
sition, the assessment roll shall contain an entry of the full amount of
such  greater  assessment which shall be used by the commissioner in its
determination of class ratios pursuant to paragraph (b)  of  subdivision
one of section twelve hundred two of this chapter. In establishing state
equalization rates, class equalization rates, special state equalization
rates  and  special  state  equalization ratios under [article] ARTICLES
twelve, article twelve-A and  article  twelve-B  of  this  chapter,  the
commissioner  shall  use  the  transition assessments as provided for in
this subdivision in its determinations, or where the  actual  assessment
is the lesser, such actual assessment shall be so used.
  S 6. This act shall take effect immediately and shall be applicable to
assessment  rolls  with  a  taxable status date following such effective
date.

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