What's happening
This bill allows local governments to grant property tax exemptions to privately owned water-works corporations used for public water distribution.
Why it matters
Expands tax exemption eligibility beyond NYC. By allowing any city, county, town, village, or school district (not just NYC) to exempt certain water-works properties, the bill could encourage more localities to support private water infrastructure investments.
Potential for lower water rates. If private water-works companies receive tax relief, they may be able to reduce operational costs, which could translate into lower water rates or increased service reliability for customers.
Increases local government flexibility. Local legislative bodies are given the choice to implement these exemptions, allowing tailored responses based on community needs, fiscal health, and infrastructure priorities.
May affect local tax revenues. Granting exemptions could reduce property tax income for municipalities and school districts, potentially impacting budgets for other local services unless offset by other revenue or economic benefits.
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Who cares
Headline styles
Tax Breaks for Water Companies
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.279
- Referred to local government
- 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 Utility Tax Exemptions
In Assembly Committee · Real Property Taxation · Sponsor Michael Montesano
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6949
2017-2018 Regular Sessions
IN SENATE
November 17, 2017
Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the real property tax law, in relation to privately owned water-works corporations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 485-d of the real property tax law, as added by chapter 726 of the laws of 1985, is amended to read as follows:
§ 485-d. Water-works corporations. 1. Real property situated in a city with a population of one million or more owned by a water-works corporation subject to the provisions of the public service law and used exclusively for the sale, furnishing and distribution of water for domestic, commercial and public purposes, shall be wholly or partially exempt from taxation provided that the local legislative body of such city within which such property is situated adopts a local law so providing.
2. Real property owned by a private water-works corporation subject to the provisions of the public service law and used exclusively for the sale, furnishing and distribution of water for domestic, commercial and public purposes, shall be wholly or partially exempt from taxation provided that the local legislative body of such city, county, town, village or school district within which such property is situated adopts a local law so providing.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13739-02-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to privately owned water-works corporations
Purpose
This legislation would exempt real estate owned by private water-works corporations from taxation
Summary of provisions
Section 485-d of the real property tax law, as added by chapter 726 of the laws of 1985, is amended to exempt real estate owned by private water-works corporations from taxation provided that the local legisla- tive body adopts a local law providing for such exemption.
Justification
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.
New York American Water is a private company that services 120,000 households and businesses in Nassau County. Unlike public water utili- ties 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 parity between public water utilities and private water utilities by exempting real estate owned by private water-works corporations from taxation.
Legislative history
New bill.
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.