What's happening
This bill provides a tax credit to certain Nassau County private water utility customers for property tax-related bill increases and requires a Jericho Water District feasibility study.
Why it matters
Provides direct financial relief to affected residents. By offering a state tax credit for water bill increases tied specifically to property taxes, the bill aims to offset rising costs for private water utility customers in select Nassau County towns, potentially easing a unique local financial burden.
Targets a specific group facing higher costs. The bill is narrowly focused on customers of private water utilities in the towns of Hempstead and Oyster Bay—areas known for some of the highest water rates in New York—addressing a longstanding equity issue compared to municipal water customers.
Initiates a formal study of public takeover feasibility. By mandating a feasibility study on whether the Jericho Water District could absorb customers of a private utility (American Water), the bill could lay groundwork for municipalization, possibly leading to lower rates and more local control over water services.
Sets a clear timeline and sunset clause. The tax credit and study are both time-limited, with a defined expiration at the end of 2021, signaling that this is an interim measure while more permanent solutions are considered and evaluated.
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Who cares
Headline styles
Water Bill Credit, Study
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 56–5
- Ordered to third reading cal.1512
- Committee discharged and committed to rules
- Reported and committed to finance
- Print number 6863a
- Amend (t) and recommit to investigations and government operations
- Referred to investigations and government operations
- Referred to rules
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.
Water Bill Credit, Feasibility Study
In Assembly Committee · Ways And Means · Sponsor Michael Montesano
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6863--A
2017-2018 Regular Sessions
IN SENATE
September 6, 2017
Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing a credit for customers of certain private water utilities; and in relation to requiring a feasibility study relating to the Jericho Water District; 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. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Private water utility bill relief credit. (1) General. An individual taxpayer who is serviced by a private water utility, serving the towns of Hempstead and Oyster Bay located in the county of Nassau, shall be allowed a credit against the tax imposed by this article equal to the amount of any annual increase of such taxpayer's annual water bill directly ascribable to an increase in property taxes paid by such private water utility.
(2) Certification for credit allowance. The commissioner shall determine the procedure for certification for the credit authorized pursuant to this subsection.
§ 2. The public service commission, in conjunction with affected municipal corporations located in the county of Nassau, shall conduct a feasibility study of the practicality of Jericho Water District, located in the town of Oyster Bay, supplying water to any current customers of American Water services. Such study shall examine the potential costs to the Jericho Water District of serving these customers, the potential
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13399-02-8
S. 6863--A 2
costs to Jericho Water District of acquiring the rights to serve these customers, the potential new water rates as a result of such transfer, and any other information deemed relevant by the affected municipal corporations. On or before December 31, 2018, the public service commission shall submit such feasibility study to the governor, temporary president of the senate, and speaker of the assembly. For purposes of this section, "municipal corporations" shall have the same meaning as such term is defined by section two of the general municipal law.
§ 3. This act shall take effect immediately; provided, however section one of this act shall apply to taxable years beginning on and after the first of January next succeeding the date on which it shall have become a law; provided, further, that this act shall expire and be deemed repealed December 31, 2021.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establish- ing a credit for customers of certain private water utilities; and in relation to requiring a feasibility study relating to the Jericho Water District; and providing for the repeal of such provisions upon expira- tion thereof
Purpose
This legislation would establish a private water utility bill relief credit.
Summary of provisions
Section 606 of the tax law is amended by adding a new subsection ccc to establish private a water utility bill relief credit.
An individual taxpayer who is serviced by a private water utility, serv- ing the towns of Hempstead and Oyster Bay shall be allowed a credit against their tax equal to the amount of such taxpayer's annual water bill ascribable to an increase in property taxes paid by their private water utility. The Commissioner of the New York State Tax Department is required to determine the procedure for certification for such credit.
Section 2 of the bill requires the Public Service Commission (PSC) to conduct a feasibility study of the practicality of the Jericho Water District supplying water to customers of American Water Services.
Justification
In May 2017, the 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. 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, American Water pays property taxes and passes that expense to their customers in their water bills.
This combination of a draconian rate increase and the practice of pass- ing 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 munici- pally owned water districts enjoy.
This legislation will create a private water utility bill relief credit. The credit amount will be equal to the amount of a taxpayer's annual water bill ascribable to property taxes paid by their private water utility. The bill also requires the PSC to conduct a feasibility study of the practicality of the Jericho Water District supplying water to customers of American Water Services.
Legislative history
New bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning on and after the first of January next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.