NY State Senate Bill 2011-S5367

Senate Bill S5367

2011-2012 Legislative Session

Relates to applications for certain tax abatements for industrial and construction work on properties in certain cities

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to finance returned to senate died in assembly
May 16, 2011	referred to real property taxation delivered to assembly passed senate ordered to third reading cal.673 reported and committed to rules
May 12, 2011	referred to finance

Votes

- May 16, 2011 - Floor Vote
  S5367
  
  39
  
  Aye
  
  19
  
  Nay
  
  2
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 16, 2011
      
      aye (39)
      
      Addabbo Jr.
      
      Alesi
      
      Ball
      
      Bonacic
      
      Carlucci
      
      DeFrancisco
      
      Diaz
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Gallivan
      
      Golden
      
      Griffo
      
      Grisanti
      
      Hannon
      
      Johnson
      
      Klein
      
      LaValle
      
      Lanza
      
      Larkin
      
      Libous
      
      Little
      
      Marcellino
      
      Martins
      
      Maziarz
      
      McDonald
      
      Nozzolio
      
      O'Mara
      
      Peralta
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Saland
      
      Seward
      
      Skelos
      
      Stavisky
      
      Valesky
      
      Young
      
      Zeldin
      
      nay (19)
      
      Avella
      
      Breslin
      
      Dilan
      
      Duane
      
      Gianaris
      
      Hassell-Thompson
      
      Kennedy
      
      Krueger
      
      Kruger
      
      Oppenheimer
      
      Parker
      
      Perkins
      
      Rivera
      
      Sampson
      
      Savino
      
      Serrano
      
      Smith
      
      Squadron
      
      Stewart-Cousins
      
      absent (2)
      
      Adams
      
      Espaillat
      
      excused (2)
      
      Huntley
      
      Montgomery
  May 16, 2011 - Rules Committee Vote
  S5367
  
  13
  
  Aye
  
  9
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: May 16, 2011
      
      aye (13)
      
      Alesi
      
      Farley
      
      Hannon
      
      Johnson
      
      LaValle
      
      Larkin
      
      Libous
      
      Marcellino
      
      Maziarz
      
      Nozzolio
      
      Saland
      
      Seward
      
      Skelos
      
      nay (9)
      
      Breslin
      
      Dilan
      
      Duane
      
      Hassell-Thompson
      
      Krueger
      
      Parker
      
      Perkins
      
      Sampson
      
      Stewart-Cousins
      
      aye wr (1)
      
      Smith
      
      excused (1)
      
      Montgomery
  May 16, 2011 - Finance Committee Vote
  S5367
  
  19
  
  Aye
  
  4
  
  Nay
  
  11
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Finance Committee Vote: May 16, 2011
      
      aye (19)
      
      Alesi
      
      Bonacic
      
      Diaz
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Johnson
      
      Lanza
      
      Larkin
      
      Marcellino
      
      Oppenheimer
      
      Parker
      
      Robach
      
      Seward
      
      Stavisky
      
      Young
      
      nay (4)
      
      Krueger
      
      Perkins
      
      Rivera
      
      Stewart-Cousins
      
      aye wr (11)
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Duane
      
      Gianaris
      
      Kruger
      
      LaValle
      
      Little
      
      Nozzolio
      
      Peralta
      
      Saland
      
      excused (1)
      
      Montgomery

2011-S5367 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§489-aaaaaa, 489-dddddd & 489-eeeeee, RPT L; amd §§11-268, 11-271 & 11-272, NYC Ad Cd

2011-S5367 (ACTIVE) - Summary

Relates to applications for certain tax abatements for industrial and construction work on properties in certain cities and tax abatements for certain energy generating facilities in such city.

2011-S5367 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5367

TITLE OF BILL:
An act
to amend the real property tax law and the administrative code of the
city of New York, in relation to applications for tax abatements for
industrial and construction work on properties in a city of one million
or more persons and to tax abatements for certain energy generating
facilities in such city

PURPOSE OR GENERAL IDEA OF BILL:
This bill would extend the Industrial
and Commercial Abatement Program (ICAP) to March 1, 2015, restore
electric generating facilities to the tax abatement program, and
would forestall a rate increase on electricity rates paid by the
residents and businesses of the City of New York.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill lists
legislative findings that electric generating facilities are no
longer eligible for as-of-right benefits under the ICAP program
resulting in greatly reduced investments in new generating facilities
within New York City. In addition, due to a recent Federal Energy
Regulatory Commission (FERC) ruling, the exclusion of energy
generating facilities from ICAP is likely to result in significant
rate increases in New York City beginning in the summer of 2011.

Section 2 would place electric generating facilities as defined by the
New York Independent System Operator (NYISO) into the ICAP program
and provides a 15 year total tax abatement for these electric
generating facilities.

Section 3 of the bill extends the entire ICAP program until March 1,
2015. The current ICAP authorization expired on March 1, 2011.

Section 4 would limit ICAP electric generating facility eligibility to
new or improved energy generating facility projects between the
enactment date of the bill and April 1, 2015.

Section 5 defines the recording requirements for electric generating
facilities that would be eligible and would receive ICAP benefits.

Sections 6,7,8 and 9 of the bill make corresponding amendments to the
Administrative Code of the City of New York.

Section 10 gives the bill an immediate effective date and restores
ICAP to full force and effect as of April 1, 2011.

JUSTIFICATION:
Prior to March 31, 2008, electric generating
facilities, transmission equipment and corresponding distribution
real property were eligible for full or partial New York City
property tax abatements under the Industrial and Commercial Incentive
Program. The City requested, and the Legislature enacted, a new major
tax abatement program, ICAP, in 2008, that eliminated energy
companies from as-of-right tax benefits. Although the City can grant


discretionary benefits to energy companies under ICAP, the inability
of electric generating facilities to earn and claim property tax
abatements
on an as-of-right basis for new investments and job creations is
jeopardizing billions of dollars of investments and thousands of jobs
that would benefit the citizens of New York.

In addition, removal of energy companies from ICAP has resulted in a
FERC ruling that will likely result in a 12% rate increase for the
residents and businesses of the City of New York as early as this
summer. This bill would make electricity generating plants eligible
for ICAP benefits for a 15 year period, satisfying the concern of the
FERC board, and alleviating the danger of even higher electricity
rates for a market that already must bear some of the highest power
costs in the nation. Reinstituting these facilities into ICAP
eligibility will also result in improved and cleaner electricity
supplies, reliability and affordability for the benefit of all
present and future New York residents and businesses.

The bill would also extend all other ICAP provisions for 4 years. The
ICAP tax abatement program expired on March 31, 2011. This bill, if
enacted, would restore all ICAP benefits until April 1, 2011 for 4
years. Failure to enact this bill will result in Substantially higher
taxes for all industrial and commercial companies in New York City
who are making investments in plants, equipment and providing new
jobs, thus providing a major drag on New York City's economic health.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
This act shall take effect immediately and all ICAP
provisions shall be deemed to be in full force and effect on and
after April 1, 2011.

2011-S5367 (ACTIVE) - Bill Text download pdf

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

                                  5367

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 12, 2011
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the real property tax law and the administrative code of
  the city of New York, in relation to applications for  tax  abatements
  for  industrial  and  construction work on properties in a city of one
  million or more persons and  to  tax  abatements  for  certain  energy
  generating facilities in such city

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

  Section 1. Legislative findings. The legislature hereby finds that the
New York city industrial and commercial incentive program granted, as of
right, reductions in real property taxes to new industrial  and  commer-
cial  projects,  including power plants. That program lapsed in 2008 and
its successor, the industrial and commercial abatement program,  enacted
by  chapter  119 of the laws of 2008, did not provide for tax abatements
for new generating facilities in New York city. In August 2010 the board
of directors of the New York city industrial development agency  revised
its  uniform  tax exemption policy to provide a discretionary tax abate-
ment program, and other benefits, for certain electric generating facil-
ities.  However, the tax benefits of the program were not recognized  by
the federal energy regulatory commission in setting the installed capac-
ity  demand curves for the City of New York for 2011/2012, 2012/2013 and
2013/2014, potentially resulting in a significant increase in the  level
of the demand curves and corresponding capacity prices paid by customers
in  the  city  of New York. The legislature further finds that it is the
best interest of customers to prevent such impacts by amending the  real
property  tax  law for the purpose of making electric generating facili-
ties eligible for benefits,  as  of  right,  under  the  industrial  and
commercial abatement program.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11617-02-1

S. 5367                             2

  S  2.  Subdivision  17  of section 489-aaaaaa of the real property tax
law, as added by chapter 119 of the laws of 2008, is amended to read  as
follows:
  17.  "Utility  property"  means property and equipment as described in
paragraphs (c), (d), (e), (f) and (i) of subdivision twelve  of  section
one  hundred  two of this chapter that is used in the ordinary course of
business by its owner or any other entity or property  as  described  in
paragraphs  (a) and (b) of subdivision twelve of section one hundred two
of this chapter that is owned by any entity that uses  in  the  ordinary
course  of  business  property  and equipment as described in paragraphs
(c), (d), (e), (f) and (i) of subdivision twelve of section one  hundred
two  of this chapter, without regard to the classification of such prop-
erty and equipment for real property tax purposes  pursuant  to  section
eighteen  hundred two of this chapter, except that any such property and
equipment used solely to serve the building to which they  are  attached
shall  not  be deemed utility property. NOTWITHSTANDING ANY PROVISION OF
THIS TITLE TO THE CONTRARY,  ELECTRIC  GENERATING  FACILITIES  OWNED  BY
ENTITIES  OTHER  THAN UTILITIES OWNING GREATER THAN ONE HUNDRED MILES OF
TRANSMISSION FACILITIES SHALL NOT BE CONSIDERED  UTILITY  PROPERTY.  FOR
PURPOSES  OF  THIS  TITLE,  "ELECTRIC  GENERATING FACILITY" SHALL MEAN A
GENERATING UNIT THAT IS DETERMINED BY THE NEW  YORK  INDEPENDENT  SYSTEM
OPERATOR  TO  SATISFY THE DEFINITION OF A GENERATOR SET FORTH IN SECTION
2.7 OF THE NEW YORK INDEPENDENT SYSTEM OPERATOR'S MARKET  ADMINISTRATION
AND CONTROL AREA SERVICES TARIFF, AS SUCH DEFINITION EXISTED AS OF APRIL
FIRST, TWO THOUSAND ELEVEN. AN "ELECTRIC GENERATING FACILITY" UNDER THIS
TITLE  INCLUDES ALL REAL PROPERTY USED IN CONNECTION WITH THE GENERATION
OF ELECTRICITY, AND ANY FACILITIES USED  TO  INTERCONNECT  THE  ELECTRIC
GENERATING  FACILITY  WITH  THE  ELECTRIC  TRANSMISSION  OR DISTRIBUTION
SYSTEM, BUT SHALL NOT INCLUDE ANY FACILITIES WHICH ARE PART OF THE ELEC-
TRIC TRANSMISSION OR DISTRIBUTION SYSTEM;  IT  MAY  BE  COMPRISED  OF  A
SINGLE TURBINE AND GENERATOR OR MULTIPLE TURBINES AND GENERATORS LOCATED
AT  THE  SAME SITE.   NOTWITHSTANDING ANY PROVISION OF THIS TITLE TO THE
CONTRARY, AN ELECTRIC GENERATING FACILITY SHALL BE CONSIDERED INDUSTRIAL
PROPERTY, PROVIDED HOWEVER THAT  THE  BENEFIT  PERIOD  FOR  AN  ELECTRIC
GENERATING FACILITY SHALL NOT EXCEED FIFTEEN YEARS.
  S  3. Paragraph (a) of subdivision 1 of section 489-dddddd of the real
property tax law, as amended by chapter 138 of  the  laws  of  2008,  is
amended to read as follows:
  (a)  Application for benefits pursuant to this title may be made imme-
diately following the effective date of a local law enacted pursuant  to
this  title  and,  EXCEPT FOR APPLICATIONS FOR BENEFITS PURSUANT TO THIS
TITLE BY ELECTRIC GENERATING FACILITIES, continuing until  March  first,
two thousand [eleven] FIFTEEN.
  S  4.  Section  489-dddddd  of the real property tax law is amended by
adding a new subdivision 3 to read as follows:
  3. (A) EXCEPT FOR BENEFITS GRANTED PURSUANT TO THIS TITLE TO  ELECTRIC
GENERATING  FACILITIES,  NO  BENEFITS  PURSUANT  TO  THIS TITLE SHALL BE
GRANTED FOR CONSTRUCTION WORK PERFORMED PURSUANT TO  A  BUILDING  PERMIT
ISSUED AFTER APRIL FIRST, TWO THOUSAND FIFTEEN.
  (B)  IF  NO  BUILDING  PERMIT  WAS REQUIRED, THEN, EXCEPT FOR ELECTRIC
GENERATING FACILITIES, NO BENEFITS  PURSUANT  TO  THIS  TITLE  SHALL  BE
GRANTED  FOR  CONSTRUCTION WORK THAT IS NOT COMMENCED ON OR BEFORE APRIL
FIRST, TWO THOUSAND FIFTEEN.
  S 5. Subdivision 1 of section 489-eeeeee of the real property tax law,
as added by chapter 119 of the laws of  2008,  is  amended  to  read  as
follows:

S. 5367                             3

  1. Continuing use. For the duration of the benefit period, the recipi-
ent  of benefits shall file biennially with the department, on or before
the appropriate taxable status date, a statement of the  continuing  use
of  such  property  and any changes in use that have occurred, PROVIDED,
HOWEVER,  THAT ANY RECIPIENT OF BENEFITS RECEIVING BENEFITS FOR PROPERTY
DEFINED AS AN ELECTRIC GENERATING FACILITY  SHALL  FILE  SUCH  STATEMENT
BIANNUALLY.  This statement shall be in a form determined by the depart-
ment  and  may  be  in  any  format  the  department  determines, in its
discretion, is appropriate, including electronic format. The  department
shall have authority to terminate such benefits upon failure of a recip-
ient to file such statement by the appropriate taxable status date.  The
burden of proof shall be on the recipient to establish continuing eligi-
bility  for  benefits  and  the  department  shall have the authority to
require that statements filed under this subdivision be certified.
  S 6. Subdivision q of section 11-268 of the administrative code of the
city of New York, as added by local law number 47 of  the  city  of  New
York for the year 2008, is amended to read as follows:
  q.  "Utility  property"  means  property and equipment as described in
paragraphs (c), (d), (e), (f) and (i) of subdivision twelve  of  section
one  hundred  two of the real property tax law that is used in the ordi-
nary course of business by its owner or any other entity or property  as
described in paragraphs (a) and (b) of subdivision twelve of section one
hundred  two  of  such  law that is owned by any entity that uses in the
ordinary course of business property and equipment as described in para-
graphs (c), (d), (e), (f) and (i) of subdivision twelve of  section  one
hundred  two  of  such law, without regard to the classification of such
property and equipment  for  real  property  tax  purposes  pursuant  to
section  eighteen hundred two of such law, except that any such property
and equipment used solely to  serve  the  building  to  which  they  are
attached  shall  not  be  deemed utility property.   NOTWITHSTANDING ANY
PROVISION OF THIS PART TO THE CONTRARY, ELECTRIC  GENERATING  FACILITIES
SHALL  NOT  BE  CONSIDERED  UTILITY PROPERTY. FOR PURPOSES OF THIS PART,
"ELECTRIC GENERATING FACILITY" SHALL MEAN  A  GENERATING  UNIT  THAT  IS
DETERMINED  BY  THE  NEW YORK INDEPENDENT SYSTEM OPERATOR TO SATISFY THE
DEFINITION OF A GENERATOR SET FORTH IN SECTION 2.7 OF THE NEW YORK INDE-
PENDENT  SYSTEM  OPERATOR'S  MARKET  ADMINISTRATION  AND  CONTROL   AREA
SERVICES TARIFF, AS SUCH DEFINITION EXISTED AS OF APRIL FIRST, TWO THOU-
SAND  ELEVEN. AN "ELECTRIC GENERATING FACILITY" UNDER THIS PART INCLUDES
ALL REAL PROPERTY USED IN CONNECTION WITH THE GENERATION OF ELECTRICITY,
AND ANY FACILITIES USED TO INTERCONNECT THE ELECTRIC GENERATOR  FACILITY
WITH  THE  ELECTRIC  TRANSMISSION  OR DISTRIBUTION SYSTEM, BUT SHALL NOT
INCLUDE ANY FACILITIES WHICH ARE PART OF THE  ELECTRIC  TRANSMISSION  OR
DISTRIBUTION SYSTEM; IT MAY BE COMPRISED OF A SINGLE TURBINE AND GENERA-
TOR  OR  MULTIPLE  TURBINES  AND  GENERATORS  LOCATED  AT THE SAME SITE.
NOTWITHSTANDING ANY PROVISION OF THIS PART TO THE CONTRARY, AN  ELECTRIC
GENERATOR  FACILITY  SHALL  BE  CONSIDERED INDUSTRIAL PROPERTY, PROVIDED
HOWEVER THAT THE BENEFIT PERIOD FOR AN ELECTRIC GENERATOR FACILITY SHALL
NOT EXCEED FIFTEEN YEARS.
  S 7. Paragraph 1 of subdivision a of section 11-271 of the administra-
tive code of the city of New York, as added by local law  number  47  of
the city of New York for the year 2008, is amended to read as follows:
  (1)  Application  for benefits pursuant to this part may be made imme-
diately following the effective date of the local law  that  added  this
section  and, EXCEPT FOR APPLICATIONS FOR BENEFITS PURSUANT TO THIS PART
BY ELECTRIC GENERATING FACILITIES, continuing  until  March  first,  two
thousand [eleven] FIFTEEN.

S. 5367                             4

  S 8. Section 11-271 of the administrative code of the city of New York
is amended by adding a new subdivision c to read as follows:
  C.  (1)  EXCEPT FOR BENEFITS GRANTED PURSUANT TO THIS PART TO ELECTRIC
GENERATING FACILITIES, NO BENEFITS PURSUANT TO THIS PART SHALL BE GRANT-
ED FOR CONSTRUCTION WORK PERFORMED PURSUANT TO A BUILDING PERMIT  ISSUED
AFTER APRIL FIRST, TWO THOUSAND FIFTEEN.
  (2)  IF  NO  BUILDING  PERMIT  WAS REQUIRED, THEN, EXCEPT FOR ELECTRIC
GENERATING FACILITIES, NO BENEFITS PURSUANT TO THIS PART SHALL BE GRANT-
ED FOR CONSTRUCTION WORK THAT IS NOT COMMENCED ON OR BEFORE APRIL FIRST,
TWO THOUSAND FIFTEEN.
  S 9. Subdivision a of section 11-272 of the administrative code of the
city of New York, as added by local law number 47 of  the  city  of  New
York for the year 2008, is amended to read as follows:
  a. Continuing use. For the duration of the benefit period, the recipi-
ent  of benefits shall file biennially with the department, on or before
the appropriate taxable status date, a statement of the  continuing  use
of  such  property  and any changes in use that have occurred, PROVIDED,
HOWEVER, THAT ANY RECIPIENT OF BENEFITS RECEIVING BENEFITS FOR  PROPERTY
DEFINED  AS  AN  ELECTRIC  GENERATING FACILITY SHALL FILE SUCH STATEMENT
BIANNUALLY.  This statement shall be in a form determined by the depart-
ment and may  be  in  any  format  the  department  determines,  in  its
discretion,  is appropriate, including electronic format. The department
shall have authority to terminate such benefits upon failure of a recip-
ient to file such statement by the appropriate taxable status date.  The
burden of proof shall be on the recipient to establish continuing eligi-
bility for benefits and the  department  shall  have  the  authority  to
require that statements filed under this subdivision be certified.
  S  10.  This  act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2011.

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