MARCELLINO INTRODUCE LEGISLATION TO PROTECT WATER CUSTOMERS BY ELIMINATING AMERICAN WATER’S PROPERTY TAXES

Carl L Marcellino

November 27, 2017

Senator Carl L. Marcellino today announced that he has introduced a bill to address the dramatically high water bill spikes that have affected customers of New York American Water on Long Island. 

In May 2017, the New York State Public Service Commission (PSC) granted New York American Water a rate increase for the next four consecutive years. These increases range from 1 percent to as high as 9.6 percent.

The combination of a draconian rate increase and the practice of passing the companies taxes on to the backs of their ratepayers has created a dramatic spike in water bills. Residents who live in private water utility serviced areas have no choice in their water provider. These customers deserve to receive the same benefit that customers of municipally owned water districts enjoy.

“People can’t pick and choose their water provider.  Municipally owned water customers are not burdened by property taxes, the same should hold true for private water utility customers.  By eliminating the property tax on private water utilities, customers’ bills will be reduced dramatically,” said Senator Carl L. Marcellino.

New York American Water is a private company that services 120,000 households and businesses in Nassau County. Unlike public water utilities in New York State, private water utilities pay property taxes and pass that expense to their customers in their water bills.

This legislation (S6949) will create parity between public water utilities and private water utilities by exempting real estate owned by private water-works corporations from taxation.