Relates to creating school tax relief for property within a school district where a power plant has been removed

BILL NUMBER:S5483

Title of bill

An act to amend the real property tax law, in relation to creating school tax relief for property within a school district where a power plant has been removed; and providing for the repeal of such provisions upon expiration thereof

Purpose

To provide temporary relief for communities who has a direct impact from a closure and subsequent demolition of a power plant within their school district.

Summary of provisions

To qualify for this school tax relief exemption, the property must be within a school district where a power plant has been physically removed between the years of 2008 and the effective date of this legislation. The exemption shall be discontinued if a new power plant or energy providing plant has been reestablished within the district, or be deemed repealed 10 years after the effective date.

Justification

Power plants are often an essential part of the surrounding community, as a major tax contributor and employer, Throughout the first decade of the 2000's, deregulation of the utility industry, followed by new regulations at the end of the decade had forced a shutdown and demolition of power plants across the state. Losing even 25 acres of land where a power generating facility was located can cause a major shortfall in a total real estate tax bill. This shortfall now has to be unfairly balanced on the backs of the remaining tax base. This legislation would provide the necessary temporary relief for a school district to reassess its tax base.

Legislative history

None.

Fiscal implications

To be determined.

Effective date

Immediate.