senate Bill S7026A

Signed by Governor

Relates to the exemption from taxation for certain solar or wind energy systems or farm waste energy systems

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Bill Status


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

  • 16 / Apr / 2014
    • REFERRED TO LOCAL GOVERNMENT
  • 20 / May / 2014
    • 1ST REPORT CAL.891
  • 21 / May / 2014
    • 2ND REPORT CAL.
  • 28 / May / 2014
    • ADVANCED TO THIRD READING
  • 02 / Jun / 2014
    • AMENDED ON THIRD READING 7026A
  • 11 / Jun / 2014
    • PASSED SENATE
  • 11 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 11 / Jun / 2014
    • REFERRED TO WAYS AND MEANS
  • 12 / Jun / 2014
    • SUBSTITUTED FOR A9446A
  • 12 / Jun / 2014
    • ORDERED TO THIRD READING RULES CAL.199
  • 12 / Jun / 2014
    • PASSED ASSEMBLY
  • 12 / Jun / 2014
    • RETURNED TO SENATE
  • 25 / Aug / 2014
    • DELIVERED TO GOVERNOR
  • 04 / Sep / 2014
    • SIGNED CHAP.344

Summary

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.

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Bill Details

See Assembly Version of this Bill:
A9446A
Versions:
S7026
S7026A
Legislative Cycle:
2013-2014
Law Section:
Real Property Tax Law
Laws Affected:
Amd §487, RPT L

Sponsor Memo

BILL NUMBER:S7026A

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
jurisdiction 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. Sets forth 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.

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

                                 7026--A
    Cal. No. 891

                            I N  S E N A T E

                             April 16, 2014
                               ___________

Introduced  by  Sens.  MAZIARZ,  AVELLA,  BOYLE, DILAN, GIPSON, LATIMER,
  SERRANO -- read twice and ordered printed,  and  when  printed  to  be
  committed  to  the Committee on Local Government -- reported favorably
  from said committee, ordered to first and second report, ordered to  a
  third  reading,  amended and ordered reprinted, retaining its place in
  the order of third reading

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:

  Section  1. Subdivision 5 of section 487 of the real property tax law,
as amended by chapter 366 of the laws of 2010, is  amended  to  read  as
follows:
  5. The exemption granted pursuant to this section shall only be appli-
cable to solar or wind energy systems or farm waste energy systems which
are  (a)  existing  or constructed prior to July first, nineteen hundred
eighty-eight or (b) constructed subsequent to  January  first,  nineteen
hundred  ninety-one  and  prior to January first, two thousand [fifteen]
TWENTY-FIVE.
  S 2. Subdivision 8 of section 487 of the real  property  tax  law,  as
amended  by  chapter  515  of the laws of 2002 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:
  8.  (A)  Notwithstanding  the  provisions  of  subdivision two of this
section, a county, city, town or village may by local law  or  a  school
district, other than a school district to which article fifty-two of the
education law applies, may by resolution provide that no exemption under
this section shall be applicable within its jurisdiction with respect to
any   solar   or   wind  energy  system  or  farm  waste  energy  system
[constructed] WHICH BEGAN  CONSTRUCTION  subsequent  to  January  first,
nineteen  hundred  ninety-one  or  the effective date of such local law,
ordinance or resolution, whichever is later. A copy of  any  such  local

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14723-02-4

S. 7026--A                          2

law  or  resolution  shall  be  filed with the commissioner and with the
president of the authority.
  (B)  CONSTRUCTION  OF  A  SOLAR  OR WIND ENERGY SYSTEM OR A FARM WASTE
ENERGY SYSTEM SHALL BE DEEMED TO HAVE BEGUN UPON THE FULL EXECUTION OF A
CONTRACT OR INTERCONNECTION AGREEMENT WITH A UTILITY; PROVIDED  HOWEVER,
THAT IF SUCH CONTRACT OR INTERCONNECTION AGREEMENT REQUIRES A DEPOSIT TO
BE  MADE,  THEN  CONSTRUCTION  SHALL  BE  DEEMED  TO HAVE BEGUN WHEN THE
CONTRACT OR INTERCONNECTION AGREEMENT IS FULLY EXECUTED AND THE  DEPOSIT
IS  MADE.  THE OWNER OR DEVELOPER OF SUCH A SYSTEM SHALL PROVIDE WRITTEN
NOTIFICATION TO THE APPROPRIATE LOCAL JURISDICTION OR JURISDICTIONS UPON
EXECUTION OF THE CONTRACT OR THE INTERCONNECTION AGREEMENT.
  S 3. Paragraph (a) of subdivision 9 of section 487 of the real proper-
ty tax law, as added by chapter 608 of the laws of 2002, is  amended  to
read as follows:
  (a)  A county, city, town, village or school district, except a school
district under article fifty-two of the  education  law,  that  has  not
acted  to  remove the exemption under this section may require the owner
of a property which includes a solar or wind energy system  which  meets
the  requirements  of  subdivision four of this section, to enter into a
contract for payments in lieu of taxes. Such contract may require annual
payments in an amount not to exceed the amounts which would otherwise be
payable but for the exemption under this section. IF THE OWNER OR DEVEL-
OPER OF SUCH A SYSTEM PROVIDES WRITTEN NOTIFICATION TO A  TAXING  JURIS-
DICTION  OF  ITS  INTENT  TO  CONSTRUCT  SUCH A SYSTEM, THEN IN ORDER TO
REQUIRE THE OWNER OR DEVELOPER OF SUCH SYSTEM TO ENTER INTO  A  CONTRACT
FOR PAYMENTS IN LIEU OF TAXES, SUCH TAXING JURISDICTION MUST NOTIFY SUCH
OWNER  OR  DEVELOPER OF ITS INTENT TO REQUIRE A CONTRACT FOR PAYMENTS IN
LIEU OF TAXES WITHIN SIXTY DAYS OF RECEIVING THE WRITTEN NOTIFICATION.
  S 4. This act shall take effect immediately.

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