NY State Senate Bill 2025-S7845

Current Bill Status - In Senate Committee Local Government 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 09, 2025	referred to local government

2025-S7845 (ACTIVE) - Details

See Assembly Version of this Bill:: A6548
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §16-gg, UDC Act; add §485-z, RPT L

2025-S7845 (ACTIVE) - Summary

Provides for real property tax exemptions for last mile broadband infrastructure constructed, altered, installed or improved in an area designated a broadband opportunity area.

2025-S7845 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7845

SPONSOR: FAHY
 
TITLE OF BILL:

An act to amend the real property tax law and the urban development
corporation act, in relation to establishing broadband opportunity areas

 
PURPOSE:

To create broadband opportunity areas to assist with the last mile
deployment of broadband throughout the State in un- and underserved
locations.

 
SUMMARY OF PROVISIONS:

Section 1: amends section 16-gg of section 1 of chapter 174 of the laws
of 1968, constituting the New York state Urban Development Corporation
Act, as amended by section 2 of part MMM of chapter 58 of the laws of
2022, to add a new subdivision 14 establishing broadband opportunity
areas in un- and underserved areas of the State.

Section 2 amends the Real Property Tax Law to add new § 485-z, which
would allow municipalities to opt-in to broadband opportunity areas in
areas that qualify.

Section 3 is the effective date.

 
JUSTIFICATION:

Access to reliable affordable high-speed internet is more critical in
today's world than ever before. Unfortunately, it is out of reach for
many families throughout New York. These households have children that
struggle to keep up with homework assignments and projects relying on
internet access. These households have stay-at-home parents who possess
the qualifications for remote job positions but lack the required inter-
net access to secure employment. Small businesses in remote areas, such
as family farms, that lack internet access have a competitive disadvan-
tage.

The widest possible deployment of high-speed broadband service is a top
priority for New York. The State provided an estimated $500 million for
this purpose through the ConnectALL program. In addition, through the
federal American Rescue package, New York will receive another $664
million through the Broadband Equity Access and Deployment (BEAD) fund
to help deploy broadband in New York.

The areas of the State that remain un- and underserved are some of the
most remote and difficult to connect. BEAD funding will to be vital to
ensure the goal of 100% connectivity. However, one of the considerations
that all companies must make when deciding whether to apply for the
funds to build out broadband in an area are the ongoing network mainte-
nance costs. One of the most significant costs incurred by broadband
companies - and thus the most significant barrier to investment - is the
required property taxes that will have to be paid on the newly built
networks. Even with the significant state and federal investments into
building out broadband networks, the real property taxes in the most
remote areas of our State add to the costs that broadband companies must
contemplate when making buildout decisions.
The Broadband Opportunity Areas proposal would offer a meaningful
solution to this problem. This proposal would provide property tax
relief to broadband companies who are completing internet buildout in
unserved and underserved communities, as defined by the Federal Communi-
cations Commission.  Importantly, the real property tax exemption would
only last for ten years and would only apply to new broadband
connections in designated areas. Localities are currently not receiving
those tax dollars, as there are no broadband connections to tax in the
unserved or underserved locations, so communities will not be losing
funding from this proposal. However, those communities will see the
immediate benefit of broadband deployment in areas of great need.
Further, these properties will return to the tax rolls after the end of
the exemption period, allowing communities to grow their tax base in the
future.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
90 days after it shall become law.

2025-S7845 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7845
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2025
                                ___________
 
 Introduced  by  Sen.  FAHY  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax  law  and  the  urban  development
   corporation  act,  in  relation  to establishing broadband opportunity
   areas

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  16-gg of section 1 of chapter 174 of the laws of
 1968, constituting the New York state urban development corporation act,
 as added by section 2 of part MMM of chapter 58 of the laws of 2022,  is
 amended by adding a new subdivision 14 to read as follows:
   14.  BROADBAND  OPPORTUNITY  AREAS.    (A) THE DIVISION SHALL HAVE THE
 POWER TO DETERMINE AND ESTABLISH BROADBAND OPPORTUNITY AREAS. TO QUALIFY
 AS A BROADBAND OPPORTUNITY AREA, A LOCATION MUST BE A POPULATION  CENSUS
 TRACT  THAT  CONTAINS  AN  UNDERSERVED OR UNSERVED BROADBAND SERVICEABLE
 LOCATION AS DEFINED BY THE FEDERAL COMMUNICATIONS COMMISSION.
   (B) TO QUALIFY FOR THE EXEMPTIONS SET FORTH IN SECTION  485-Z  OF  THE
 REAL  PROPERTY  TAX  LAW,  PROVIDERS  OF TELECOMMUNICATION SERVICES MUST
 PROVIDE RELIABLE INTERNET SERVICE WITH CONSISTENT SPEEDS OF AT LEAST 100
 MEGABITS PER SECOND FOR DOWNLOAD AND AT LEAST 20 MEGABITS PER SECOND FOR
 UPLOAD, UNLESS THIS REQUIREMENT IS WAIVED  FOR  A  SPECIFIC  PROJECT  OR
 LOCATION  AND  A  DIFFERENT SPEED LEVEL IS APPROVED BY THE DIVISION, BUT
 UNDER NO CIRCUMSTANCES LESS THAN 25 MEGABITS PER SECOND DOWNLOAD  AND  3
 MEGABITS PER SECOND UPLOAD, TO RESIDENCES WITHIN A BROADBAND OPPORTUNITY
 AREA.
   (C)  THE  DIVISION  MAY  TERMINATE A BROADBAND OPPORTUNITY AREA DESIG-
 NATION UPON FINDING THAT (I) THE APPLICANT HAS FAILED  SUBSTANTIALLY  TO
 IMPLEMENT  THE  REQUIRED  BROADBAND PLAN WITHIN THE TIME STATED THEREIN;
 (II) THERE HAS BEEN INADEQUATE MANAGEMENT AND EVALUATION OF  THE  BROAD-
 BAND  OPPORTUNITY  AREA  AT  THE LOCAL LEVEL; OR (III) THE APPLICANT HAS
 REPEATEDLY  FAILED  TO  COMPLY  WITH  PROGRAM  REPORTING   REQUIREMENTS,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10236-01-5

 S. 7845                             2
 
 PROVIDED,  HOWEVER,  THAT  NO  TERMINATION  SHALL OCCUR UNLESS AND UNTIL
 WRITTEN NOTICE HAS BEEN GIVEN TO THE APPLICANT AND A PUBLIC HEARING  HAS
 BEEN HELD THIRTY DAYS PRIOR TO THE EFFECTIVE DATE OF SUCH TERMINATION.
   (D)  FOR  THE PURPOSES OF THIS SECTION, "PROVIDER OF TELECOMMUNICATION
 SERVICES" MEANS ANY PERSON WHO  FURNISHES  OR  SELLS  TELECOMMUNICATIONS
 SERVICES  REGARDLESS OF WHETHER SUCH ACTIVITIES ARE THE MAIN BUSINESS OF
 SUCH PERSON OR ARE ONLY INCIDENTAL THERETO.
   § 2. The real property tax law is amended  by  adding  a  new  section
 485-z to read as follows:
   §  485-Z.  BROADBAND  OPPORTUNITY  AREA.  1.  (A)  LAST MILE BROADBAND
 INFRASTRUCTURE CONSTRUCTED, ALTERED, INSTALLED OR IMPROVED  IN  AN  AREA
 DESIGNATED  A  BROADBAND  OPPORTUNITY AREA AS ESTABLISHED IN SUBDIVISION
 FOURTEEN OF SECTION SIXTEEN-GG OF SECTION ONE  OF  CHAPTER  ONE  HUNDRED
 SEVENTY-FOUR  OF  THE LAWS OF NINETEEN HUNDRED SIXTY-EIGHT, CONSTITUTING
 THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ACT,  SHALL  BE  EXEMPT
 FROM TAXATION AND SPECIAL AD VALOREM LEVIES BY ANY MUNICIPAL CORPORATION
 IN  WHICH  LOCATED,  FOR  THE  PERIOD AND TO THE EXTENT HEREIN PROVIDED,
 PROVIDED THAT THE GOVERNING BOARD OF SUCH MUNICIPAL  CORPORATION,  AFTER
 PUBLIC  HEARING,  ADOPTS  A LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING
 THEREFOR. FOR PURPOSES OF THIS SECTION, "LAST MILE" SHALL MEAN BROADBAND
 INFRASTRUCTURE THAT IS DESIGNED, BUILT, AND OPERATED WITH THE ABILITY TO
 SERVE EVERY BUSINESS OR RESIDENTIAL LOCATION AT WHICH MASS-MARKET  FIXED
 BROADBAND INTERNET SERVICE IS, OR CAN BE, INSTALLED WITHIN THREE HUNDRED
 FEET  OF  THE  PATH  OF  CONSTRUCTION,  AT  SPEEDS IDENTIFIED IN SECTION
 SIXTEEN-GG OF SECTION ONE OF CHAPTER ONE  HUNDRED  SEVENTY-FOUR  OF  THE
 LAWS  OF  NINETEEN  HUNDRED SIXTY-EIGHT, CONSTITUTING THE NEW YORK STATE
 URBAN  DEVELOPMENT  CORPORATION  ACT,  REGARDING  BROADBAND  OPPORTUNITY
 AREAS.
   (B)  A  MUNICIPAL CORPORATION MAY PROVIDE IN SUCH LOCAL LAW, ORDINANCE
 OR RESOLUTION, OR IN A  SEPARATE  LOCAL  LAW,  ORDINANCE  OR  RESOLUTION
 ADOPTED  AFTER PUBLIC HEARING, THAT THE EXEMPTION SO AUTHORIZED SHALL BE
 FOR A TERM OF TEN YEARS, NOTWITHSTANDING THAT  THE  DESIGNATION  OF  THE
 AREA  MAY  EXPIRE PRIOR TO THE END OF SUCH TEN-YEAR TERM. ANY SUCH LOCAL
 LAW, ORDINANCE OR RESOLUTION SHALL  BE  APPLICABLE  ONLY  TO  EXEMPTIONS
 COMMENCING ON ASSESSMENT ROLLS WITH TAXABLE STATUS DATES ON OR AFTER THE
 EFFECTIVE DATE OF SUCH LOCAL LAW, ORDINANCE OR RESOLUTION.
   2. (A) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
   (I)  NOTICE  OF  THE DESIGNATION OF THE BROADBAND OPPORTUNITY AREA HAS
 BEEN FILED WITH THE CLERK OF THE ASSESSING UNIT BY THE  COMMISSIONER  ON
 OR BEFORE THE APPLICABLE TAXABLE STATUS DATE;
   (II)   THE   CONSTRUCTION,  ALTERATION,  INSTALLATION  OR  IMPROVEMENT
 COMMENCED ON OR AFTER THE DATE THE  BROADBAND  OPPORTUNITY  AREA  DESIG-
 NATED; AND
   (III)  THE DESIGNATION OF THE BROADBAND OPPORTUNITY AREA HAS NOT ENDED
 AND HAS NOT BEEN TERMINATED ON OR BEFORE THE APPLICABLE  TAXABLE  STATUS
 DATE.
   (B)  FOR  PURPOSES OF THIS SECTION THE TERMS CONSTRUCTION, ALTERATION,
 INSTALLATION AND IMPROVEMENT SHALL NOT INCLUDE ORDINARY MAINTENANCE  AND
 REPAIRS.
   (C)  NO  SUCH EXEMPTION SHALL BE GRANTED CONCURRENT WITH OR SUBSEQUENT
 TO ANY OTHER REAL PROPERTY TAX EXEMPTION GRANTED TO  THE  SAME  IMPROVE-
 MENTS TO REAL PROPERTY, EXCEPT, WHERE DURING THE PERIOD OF SUCH PREVIOUS
 EXEMPTION,  PAYMENTS IN LIEU OF TAXES OR OTHER PAYMENTS WERE MADE TO THE
 LOCAL GOVERNMENT IN AN AMOUNT THAT WOULD HAVE BEEN EQUAL TO  OR  GREATER
 THAN THE AMOUNT OF REAL PROPERTY TAXES THAT WOULD HAVE BEEN PAID ON SUCH
 IMPROVEMENTS  HAD  SUCH  PROPERTY  BEEN GRANTED AN EXEMPTION PURSUANT TO
 S. 7845                             3
 
 THIS SECTION. IN SUCH CASE, AN EXEMPTION SHALL BE GRANTED FOR  A  NUMBER
 OF  YEARS  EQUAL  TO  THE  TEN-YEAR  EXEMPTION  GRANTED PURSUANT TO THIS
 SECTION LESS THE NUMBER OF YEARS THE PROPERTY WOULD HAVE BEEN PREVIOUSLY
 EXEMPT FROM REAL PROPERTY TAXES.
   3.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
 OF SUCH REAL PROPERTY ON A FORM  PRESCRIBED  BY  THE  COMMISSIONER.  THE
 ORIGINAL  OF  SUCH  APPLICATION  SHALL BE FILED WITH THE ASSESSOR OF THE
 ASSESSING UNIT. SUCH ORIGINAL APPLICATION SHALL BE FILED  ON  OR  BEFORE
 THE  APPROPRIATE TAXABLE STATUS DATE OF SUCH ASSESSING UNIT AND NO LATER
 THAN ONE YEAR FROM THE DATE OF COMPLETION OF SUCH  CONSTRUCTION,  ALTER-
 ATION, INSTALLATION OR IMPROVEMENT.
   4.  IF  THE ASSESSOR RECEIVES THE NOTICE DESCRIBED IN PARAGRAPH (A) OF
 SUBDIVISION TWO OF THIS SECTION AND AN APPLICATION BY THE OWNER  OF  THE
 REAL  PROPERTY, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH REAL
 PROPERTY SHALL THEREAFTER BE EXEMPT FROM  TAXATION  AS  HEREIN  PROVIDED
 COMMENCING  WITH  THE  ASSESSMENT ROLL PREPARED AFTER THE TAXABLE STATUS
 DATE REFERRED TO IN SUBDIVISION THREE  OF  THIS  SECTION.  THE  ASSESSED
 VALUE OF ANY EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL BE ENTERED
 BY  THE  ASSESSOR ON THE ASSESSMENT ROLL WITH THE TAXABLE PROPERTY, WITH
 THE AMOUNT OF THE EXEMPTION ENTERED IN A SEPARATE COLUMN.
   5. EXEMPTIONS EXISTING PRIOR IN TIME TO THE TERMINATION OF THE  DESIG-
 NATION OF BROADBAND OPPORTUNITY AREA PURSUANT TO SUBDIVISION FOURTEEN OF
 SECTION SIXTEEN-GG OF SECTION ONE OF CHAPTER ONE HUNDRED SEVENTY-FOUR OF
 THE  LAWS  OF  NINETEEN  HUNDRED  SIXTY-EIGHT, CONSTITUTING THE NEW YORK
 STATE URBAN DEVELOPMENT CORPORATION ACT, OR, IN THE CASE OF A  MUNICIPAL
 CORPORATION  WHICH  HAS  ADOPTED  A  LOCAL  LAW, ORDINANCE OR RESOLUTION
 PURSUANT TO SUBDIVISION ONE OF THIS SECTION, PRIOR IN TIME TO THE  EXPI-
 RATION  OF SUCH DESIGNATION, SHALL CONTINUE AS IF THE DESIGNATION OF THE
 BROADBAND OPPORTUNITY AREA HAD NOT BEEN TERMINATED, OR,  IF  APPLICABLE,
 HAD  NOT  EXPIRED;  PROVIDED,  HOWEVER, THAT ANY FURTHER INCREASE IN THE
 VALUE ATTRIBUTABLE TO CONSTRUCTION, ALTERATION, INSTALLATION OR IMPROVE-
 MENT COMMENCED SUBSEQUENT TO THE DATE OF TERMINATION, OR, IF APPLICABLE,
 THE DATE OF EXPIRATION, SHALL NOT BE ELIGIBLE FOR EXEMPTION PURSUANT  TO
 THIS SECTION.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.

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Senate Bill S7845

Sponsored By

Current Bill Status - In Senate Committee Local Government Committee

2025-S7845 (ACTIVE) - Details

2025-S7845 (ACTIVE) - Summary

2025-S7845 (ACTIVE) - Sponsor Memo

2025-S7845 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7845

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Sponsored By

Patricia Fahy

Current Bill Status - In Senate Committee Local Government Committee

2025-S7845 (ACTIVE) - Details

2025-S7845 (ACTIVE) - Summary

2025-S7845 (ACTIVE) - Sponsor Memo

2025-S7845 (ACTIVE) - Bill Text download pdf

Comments