What's happening
This bill establishes a five-year pilot program for central assessment of energy-related public utility mass real property in certain New York counties.
Why it matters
Centralizes and standardizes property tax assessment for utility infrastructure. By shifting assessment authority to the state for certain energy-related utility properties (like electric and gas lines, poles, substations, etc.), the pilot aims to create more uniform and potentially less contentious property valuations, reducing local disputes and inconsistencies.
Targets specific counties and limits scope. The pilot is restricted to counties with populations between 940,000 and 1.2 million (e.g., likely Westchester, Nassau, and Suffolk). This focused approach allows for controlled testing of policy effects before any statewide rollout, limiting unintended statewide impacts.
Establishes transparent processes and rights to challenge. Utility companies and local governments can challenge both the annual assessment ceilings and the associated fees, and there are detailed procedures for appeals and judicial review—aiming to balance fairness for taxpayers, municipalities, and utilities.
Potentially impacts local tax revenues and utility ratepayers. Changes to how utility property is valued could shift tax burdens between municipalities and utilities, possibly affecting municipal budgets and, downstream, customer utility rates or local services, depending on whether assessments rise or fall.
Requires ongoing evaluation and reporting. The Department of Taxation and Finance must regularly review and report on the assessment methodology and whether to expand or modify the program, ensuring legislative oversight and adaptability if the pilot reveals unintended consequences.
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Who cares
Headline styles
Test New Utility Tax Assessment
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by S5892
- Rules report cal.546
- Reported
- Reported referred to rules
- Reported referred to ways and means
- Reported referred to codes
- Referred to real property taxation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Test New Utility Tax Method
Signed by Governor · Sponsor Jeffrey D. Klein
Full text
8 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7370
2017-2018 Regular Sessions
IN ASSEMBLY
April 25, 2017
Introduced by M. of A. GALEF -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to establishing an energy-related public utility mass real property central assessment pilot program; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 2 of section 200-a of the real property tax law, as separately amended by section 2 of part J of chapter 57 and chapter 475 of the laws of 2013, is amended to read as follows:
(a) The power to determine the final special franchise value, special franchise assessment, railroad ceiling, state equalization rate or any other equalization product established pursuant to this chapter for which a complaint has been filed, as provided by sections four hundred eighty-nine-o, four hundred eighty-nine-ll, four hundred ninety-ninepppp, four hundred ninety-nine-bbbbb, six hundred fourteen, twelve hundred ten, twelve hundred fifty-three, and twelve hundred sixty-three of this chapter;
§ 2. Paragraph (a) of subdivision 2 of section 200-a of the real property tax law, as amended by section 2 of part J of chapter 57 of the laws of 2013, is amended to read as follows:
(a) The power to determine the final special franchise value, special franchise assessment, railroad ceiling, state equalization rate or any other equalization product established pursuant to this chapter for which a complaint has been filed, as provided by sections four hundred eighty-nine-o, four hundred eighty-nine-ll, four hundred ninety-ninebbbbb, six hundred fourteen, twelve hundred ten, twelve hundred fiftythree, and twelve hundred sixty-three of this chapter;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11097-02-7
A. 7370 2
§ 3. Article 4 of the real property tax law is amended by adding a new title 6 to read as follows:
TITLE 6
ENERGY-RELATED PUBLIC UTILITY MASS REAL PROPERTY CENTRAL
ASSESSMENT PILOT PROGRAM Section 499-tttt. Definitions.
499-uuuu. Annual fee.
499-vvvv. Assessment of local energy-related public utility
mass real property.
499-wwww. Assessment ceiling.
499-xxxx. Local energy-related public utility mass real proper-
ty value.
499-yyyy. Equitable ratio of assessment.
499-zzzz. Equalization rate.
499-aaaaa. Tentative determination of assessment ceiling;
notice, complaints and hearing.
499-bbbbb. Final determination of assessment ceiling; certif-
icate.
499-ccccc. Application of assessment ceiling; computation of
exemption.
499-ddddd. Reports to commissioner.
499-eeeee. Inspection of accounts and property of public utili-
ties.
§ 499-tttt. Definitions. When used in this title:
1. "Local energy-related public utility mass real property" means energy-related public utility mass real property that is located in counties with a population of more than nine hundred forty thousand and less than one million two hundred thousand inhabitants according to the last decennial census.
2. "Local assessing jurisdiction" means the town, city, village or county assessing unit that establishes the assessment rolls for such town, city, village or county with a population of more than nine hundred forty thousand and less than one million two hundred thousand inhabitants according to the last decennial census.
3. "Energy-related public utility mass real property" means real property used in the transmission and distribution of electricity and gas located in counties with a population of more than nine hundred forty thousand and less than one million two hundred thousand inhabitants according to the last decennial census, including conduits, cables, lines, wires, poles, mains, pipes, substations, tanks, supports and enclosures for electrical conductors located on, above and below real property. Such term shall include all property described in paragraph (e) of subdivision twelve of section one hundred two of this chapter. Special franchise property as described in subdivision seventeen of section one hundred two of this chapter and all property described in paragraphs (a) and (b) and subparagraphs (A), (B), (C) and (D) of paragraph (i) of subdivision twelve of section one hundred two of this chapter shall not be considered energy-related public utility mass real property for purposes of this title.
4. "Taxation" means an ad valorem levy or special assessment for which energy-related public utility mass real property is otherwise liable pursuant to this chapter.
§ 499-uuuu. Annual fee. Any costs and expenses incurred by the commissioner under the energy-related public utility mass real property central assessment pilot program shall be paid from the collection of an
A. 7370 3
annual charge upon the owners of such local energy-related public utility mass real property. The commissioner shall provide by rule for computation of such charge through the apportionment of these costs and expenses to owners of local energy-related public utility mass real property in relation to the total full value of the local energy-related public utility mass real property eligible for an assessment ceiling pursuant to this title. Prior to collecting payment of such charges, the commissioner shall annually provide a detailed report to each owner of local energy-related public utility mass real property identifying costs related to the establishment of assessment ceilings, including, but not limited to, expenditures, revenue sources and any allocations. The charges established pursuant to this section shall be subject to the approval of the director of the budget. Each owner of local energy-related public utility mass real property shall be authorized to challenge any such charges pursuant to article seventy-eight of the civil practice law and rules. All fees collected by the commissioner under this section shall be retained by the department for the purposes outlined herein.
§ 499-vvvv. Assessment of local energy-related public utility mass real property. Subject to the provisions of section four hundred ninety-nine-ccccc of this title, the assessor in each city, town and village in counties with a population of more than nine hundred forty thousand and less than one million two hundred thousand inhabitants according to the last decennial census, and counties with a population of more than nine hundred forty thousand and less than one million two hundred thousand inhabitants according to the last decennial census shall annually assess all local energy-related public utility mass real property situated in such city, town, village or county, as the case may be. Where a village has enacted a local law as provided in subdivision three of section fourteen hundred two of this chapter, the town or county assessor shall apportion that part of the assessment of local energy-related public utility mass real property in the town or county to the village for village tax purposes.
§ 499-wwww. Assessment ceiling. 1. To determine the extent to which local energy-related public utility mass real property shall be exempt under this title, an assessment ceiling for the local energy-related public utility mass real property in counties with a population of more than nine hundred forty thousand and less than one million two hundred thousand inhabitants according to the last decennial census shall be established annually by the commissioner as follows:
(a) Determine: (i) the local energy-related public utility mass real property value in accordance with the provisions of section four hundred ninety-nine-yyyy of this title; and (ii) the equalization rate factor for the local energy-related public utility mass real property in accordance with the provisions of section four hundred ninety-nine-zzzz of this title.
(b) Multiply the local energy-related public utility mass real property value by the equalization rate factor.
The result shall be the assessment ceiling.
2. The valuation date for all local energy-related public utility mass real property in counties with a population of more than nine hundred forty thousand and less than one million two hundred thousand inhabitants according to the last decennial census shall be January first of the year preceding the year in which the assessment roll on which such property is to be assessed, completed and filed in the office of the city or town clerk. The taxable status for all local energy-related public utility mass real property in counties with a population of more
A. 7370 4
than nine hundred forty thousand and less than one million two hundred thousand inhabitants according to the last decennial census shall be based upon its condition and ownership as of the taxable status date applicable to the assessment roll on which it is to appear.
3. For assessment rolls with taxable status dates in each of the three calendar years including and following the year in which this section shall take effect, the commissioner shall establish no assessment ceiling that is less than ninety percent or more than one hundred ten percent of the assessment of such local energy-related public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the second preceding calendar year from when this section shall take effect, except that the commissioner may establish assessment ceilings below the ninety percent level or above the one hundred ten percent level to take into account any change in level of assessment and/or to take into account any additions or retirements to energy-related public utility mass real property in counties with a population of more than nine hundred forty thousand and less than one million two hundred thousand inhabitants according to the last decennial census or litigation affecting the value or taxable status of the local energy-related public utility mass real property initiated prior to the effective date of this section.
§ 499-xxxx. Local energy-related public utility mass real property value. The commissioner shall compute the local energy-related public utility mass real property value as follows:
1. The local reproduction cost of the energy-related public utility mass real property of each energy-related public utility mass real property owner in counties with a population of more than nine hundred forty thousand and less than one million two hundred thousand inhabitants according to the last decennial census is the cost of reproduction, less depreciation of that energy-related public utility mass real property.
2. In ascertaining depreciation of property under this section, consideration may be given to the age, physical condition, average service lives of assets and other relevant factors.
3. Adjustments for economic or functional obsolescence shall only be made upon application by an energy-related public utility mass real property owner. Every such application shall be submitted with the annual report required by section four hundred ninety-nine-ddddd of this title.
§ 499-yyyy. Equitable ratio of assessment. The commissioner and any assessing authority shall be prohibited from assessing local energy-related public utility mass real property at a value that has a higher ratio to the full value of the local energy-related public utility mass real property than the ratio of assessed value of other real property in the same assessment class and jurisdiction to its full value, as provided in section three hundred five of this chapter.
§ 499-zzzz. Equalization rate. In determining assessment ceilings, the commissioner shall apply the final state equalization rate for the assessment roll of the local assessing jurisdiction for which the ceiling is established. If that final rate is not available, the commissioner shall apply the most recent final state equalization rate for the local assessing jurisdiction, except that if a special equalization rate has been established as provided in title two of article twelve of this chapter, such rate shall be applied. In the case of a special assessing unit as defined in section eighteen hundred one of this chapter, the equalization rate to be applied shall be the applicable class equalization rate.
A. 7370 5
§ 499-aaaaa. Tentative determination of assessment ceiling; notice, complaints and hearing. 1. Each year the commissioner shall make a tentative determination of an assessment ceiling for all local energyrelated public utility mass real property. Thereafter, the commissioner shall give notice, in writing or electronically, to each assessing unit and each owner of local energy-related public utility mass real property for which such tentative determination of an assessment ceiling shall have been made, specifying the amount of such ceiling, and making available for inspection and copying the computations used to establish the tentative assessment ceiling amount pursuant to the public officers law, and setting forth the time and place where the commissioner or his or her designee will meet to hear any complaint concerning such tentative determination. Such notice shall be sent electronically and served in writing at least forty-five days prior to the date specified for such hearing.
2. A tentative assessment ceiling may be challenged before the commissioner as follows:
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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