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

                                 8062--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 5, 2015
                               ___________

Introduced  by M. of A. MAGEE -- read once and referred to the Committee
  on Real Property  Taxation  --  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 property tax
  benefits for anaerobic digestion of agricultural waste; and to  repeal
  certain provisions of such law relating thereto

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

  Section 1. Subdivision 1 of section 483-a of  the  real  property  tax
law,  as  amended by chapter 272 of the laws of 2013, is amended to read
as follows:
  1. Structures permanently  affixed  to  [agricultural]  land  for  the
purpose  of preserving and storing forage in edible condition; farm feed
grain storage bins; commodity sheds; manure storage, handling and treat-
ment facilities, including BUT NOT LIMITED TO, composting  or  anaerobic
digestion  of agricultural materials, such as livestock manure and farm-
ing wastes, food residuals or other organic wastes associated with  food
production  or  consumption with at least fifty percent by weight of its
feedstock on an annual basis being livestock manure, farming wastes  and
crops  grown  specifically  for use as anaerobic digestion or composting
feedstock and including  any  equipment  necessary  to  the  process  of
producing,  collecting,  storing,  cleaning  and  converting biogas into
forms of energy  and  GENERATION,  TRANSMISSION,  transporting,  USE  OF
AND/OR  THE  SALE OF biogas or energy on-site, OFF-SITE, AND/OR PURSUANT
TO AN INTERCONNECTION AGREEMENT WITH A UTILITY; and bulk milk tanks  and
coolers  used  to  hold milk awaiting shipment to market shall be exempt
from taxation, special ad valorem levies and special assessments.  "Food
residuals"  means  organic material, including, but not limited to, food
scraps, food processing residue,  and  related  soiled  or  unrecyclable
paper used in food packaging, preparation or cleanup.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11503-07-5

              

A. 8062--A                          2

  S  2.  Paragraphs  (e)  and (f) of subdivision 1 of section 487 of the
real property tax law are REPEALED.
  S 3. Paragraph (d) of subdivision 1 of section 487 of the real proper-
ty tax law, as amended by chapter 515 of the laws of 2002, is amended to
read as follows:
  (d)  "Incremental  cost"  means  the increased cost of a solar or wind
energy system [or farm waste energy system] or component  thereof  which
also  serves  as  part of the building structure, above that for similar
conventional construction, which enables its use  as  a  solar  or  wind
energy [or farm waste energy] system or component.
  S  4. The section heading and subdivisions 2, 3, 4, 5 and 8 of section
487 of the real property tax law, the section heading  and  subdivisions
2,  3  and  4 as amended by chapter 515 of the laws of 2002 and subdivi-
sions 5 and 8 as amended by chapter 344 of the laws of 2014, are amended
to read as follows:
  S 487. Exemption from  taxation  for  certain  solar  or  wind  energy
systems [or farm waste energy systems].
  2. Real property which includes a solar or wind energy system [or farm
waste  energy system] approved in accordance with the provisions of this
section shall be exempt from taxation to the extent of any  increase  in
the value thereof by reason of the inclusion of such solar or wind ener-
gy  system  [or farm waste energy system] for a period of fifteen years.
When a solar or wind energy system or components thereof [or farm  waste
energy  system]  also  serve  as  part  of  the  building structure, the
increase in value which shall be exempt from taxation shall be equal  to
the  assessed value attributable to such system or components multiplied
by the ratio of the incremental cost of such system or components to the
total cost of such system or components.
  3. The president of the authority shall provide definitions and guide-
lines for the eligibility for exemption of the  solar  and  wind  energy
equipment  and  systems  [and  farm  waste energy equipment and systems]
described in paragraphs (a) and (b) of subdivision one of this section.
  4. No solar or wind energy system [or farm waste energy system]  shall
be  entitled  to  any  exemption from taxation under this section unless
such system meets the guidelines set by the president of  the  authority
and all other applicable provisions of law.
  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
twenty-five.
  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] which
began construction subsequent to January first, nineteen  hundred  nine-
ty-one or the effective date of such local law, ordinance or resolution,
whichever  is later. A copy of any such local 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  howev-
er, that if such contract or interconnection agreement requires a depos-

A. 8062--A                          3

it  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  5.  This  act  shall take effect immediately and shall apply to the
taxable year of 2014 and thereafter.