S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6543
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 11, 2019
                                ___________
 
 Introduced by M. of A. LAVINE -- read once and referred to the Committee
   on Real Property Taxation
 
 AN  ACT  to  amend  the  real property tax law, in relation to excluding
   water system property owned by water-works corporations  from  special
   franchise tax
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 17 of section 102 of the real property tax law,
 as amended by chapter 569 of the laws of 1996, is  amended  to  read  as
 follows:
   17.  "Special  franchise"  means  the  franchise,  right, authority or
 permission to construct, maintain or operate in, under, above,  upon  or
 through  any  public street, highway, water or other public place mains,
 pipes, tanks, conduits, wires or transformers, with their appurtenances,
 for conducting [water,] steam, light, power, electricity, gas  or  other
 substance,  EXCLUDING WATER.   For purposes of assessment and taxation a
 special franchise shall include the value of the tangible property situ-
 ated in, under, above, upon or through any public street, highway, water
 or other public place in connection therewith. The  term  special  fran-
 chise  shall  not  include central office equipment or station equipment
 (except public telephone terminal  equipment)  which  first  appears  on
 assessment rolls prepared on the basis of taxable status dates occurring
 on  or  after  October  first, nineteen hundred ninety-five and which is
 owned by a telephone company as defined in paragraph (d) of  subdivision
 twelve  of  this section, or owned by a telephone corporation as defined
 in subdivision seventeen of section two of the public  service  law  and
 certified  by the public service commission under section ninety-nine of
 such law, nor shall it include  property  of  a  municipal  corporation,
 public  benefit  corporation or special district, nor shall it include a
 crossing less than two hundred fifty feet in length of a public  street,
 highway,  water  or other public place outside a city or village, unless

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

                                                            LBD10244-04-9

 A. 6543                             2
 
 such crossing be the continuation of  an  occupancy  of  another  public
 street,  highway,  water  or other public place.  THE TERM SPECIAL FRAN-
 CHISE SHALL ALSO NOT INCLUDE  ANY  WATER  SYSTEM  PROPERTY  OWNED  BY  A
 WATER-WORKS  CORPORATION AS SUCH TERMS ARE DEFINED IN SECTION TWO OF THE
 PUBLIC SERVICE LAW.
   § 2. The taxable assessed valuation of any water system special  fran-
 chise  property, as defined in subdivision 17 of section 102 of the real
 property tax law, owned by a water-works corporation that  is  used  for
 conducting water on assessment rolls required by law to be completed and
 filed  on or after January first, two thousand nineteen shall not exceed
 the taxable assessed valuation of such real property on final assessment
 rolls completed and filed on or after January first, two thousand  eigh-
 teen;  the  taxable  assessed  valuation  of such property on assessment
 rolls required by law to be completed and  filed  on  or  after  January
 first,  two thousand twenty shall not exceed eighty percent of the taxa-
 ble assessed valuation of such real property on final  assessment  rolls
 completed  and  filed  on or after January first, two thousand eighteen;
 the taxable assessed valuation of  such  property  on  assessment  rolls
 required by law to be completed and filed on or after January first, two
 thousand  twenty-one  shall  not  exceed  sixty  percent  of the taxable
 assessed valuation of such  real  property  on  final  assessment  rolls
 completed  and  filed  on or after January first, two thousand eighteen;
 the taxable assessed valuation of  such  property  on  assessment  rolls
 required by law to be completed and filed on or after January first, two
 thousand  twenty-two  shall  not  exceed  forty  percent  of the taxable
 assessed valuation of such  real  property  on  final  assessment  rolls
 completed  and  filed  on or after January first, two thousand eighteen;
 and the taxable assessed valuation of such property on assessment  rolls
 required by law to be completed and filed on or after January first, two
 thousand  twenty-three  shall  not  exceed twenty percent of the taxable
 assessed valuation of such  real  property  on  final  assessment  rolls
 completed and filed on or after January first, two thousand eighteen.
   §  3.  For  purposes  of this act, any tax relief realized by a water-
 works corporation shall be used to reduce current water rates and offset
 future water rate increases.
   § 4. This act shall take effect immediately; provided,  however,  that
 section one of this act shall take effect January 1, 2024.