What's happening
This bill creates a centralized state program to annually assess and set tax assessment ceilings for energy-related public utility property in New York.
Why it matters
Standardizes and centralizes the assessment of utility infrastructure. By creating a centralized annual process for valuing the real property (like wires, poles, pipes) of electric, gas, and steam utilities, this bill aims to reduce inconsistencies and disputes between local jurisdictions and utility companies, providing more predictable and uniform tax treatment across New York State.
Caps and phases in assessment changes to limit tax volatility. The bill sets upper and lower limits on how much assessed values for utility property can increase or decrease each year from 2024 to 2027, helping municipalities and utilities avoid sudden, dramatic shifts in tax bills and local revenues during the transition to the new system.
Creates transparency and due process for utilities and local governments. Utilities receive detailed reports on assessment costs and have the right to challenge both the fees and the assessment ceilings. There are clear procedures for hearings, appeals, and judicial review, ensuring that both local governments and utility owners can contest state determinations.
Mandates regular review and modernization of valuation methods. The bill requires the state to reassess, every two years, whether the current way of valuing utility property (cost less depreciation) is still appropriate, and to consider alternative appraisal standards if needed. This ensures the system stays fair and reflects changes in the utility sector and property valuation best practices.
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Who cares
Headline styles
Centralize Utility Property Taxes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Print number 5325b
- Amend and recommit to local government
- Print number 5325a
- Amend and recommit to local government
- Referred to local government
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.
Centralize Utility Property Assessments
In Assembly Committee · Ways And Means · Sponsor Sandy Galef
Full text
8 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5325--B
2019-2020 Regular Sessions
IN SENATE
April 25, 2019
Introduced by Sen. HARCKHAM -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to an energy-related public utility mass real property central assessment program
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.
LBD11341-05-9
S. 5325--B 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 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.
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.
3. "Energy-related public utility mass real property" means real property that is: (a) owned by an electric corporation, gas corporation, combination gas and electric corporation, or steam corporation as such terms are defined in section two of the public service law, and (b) used in the storage, transmission and distribution of electricity, gas, or steam 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 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
S. 5325--B 3
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 and in each county having a department of assessment 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 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 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 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 the years two thousand twenty-four, two thousand twenty-five, two thousand twenty-six and two thousand twenty-seven, the commissioner shall establish no assessment ceiling that is below the lower limit or above the upper limit specified in this subdivision, except that the commissioner may establish assessment ceilings below such lower limit or above such upper limit 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 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 title.
S. 5325--B 4
(a) For assessment rolls with taxable status dates in two thousand twenty-four, the assessment ceiling shall not be 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 year two thousand twenty-one.
(b) For assessment rolls with taxable status dates in two thousand twenty-five, the assessment ceiling shall not be less than seventy-five percent or more than one hundred twenty-five 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 year two thousand twenty-one.
(c) For assessment rolls with taxable status dates in two thousand twenty-six, the assessment ceiling shall not be less than fifty percent or more than one hundred fifty 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 year two thousand twenty-one.
(d) For assessment rolls with taxable status dates in two thousand twenty-seven, the assessment ceiling shall not be less than twenty-five percent or more than one hundred seventy-five 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 year two thousand twenty-one.
§ 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 every assessing unit 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
S. 5325--B 5
equalization rate to be applied shall be the applicable class equalization rate.
§ 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.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to an energy-related public utility mass real property central assess- ment program
Purpose
The purpose of this legislation is to transfer the power to assess localities utility usage from local tax assessors over to the State of New York in order to produce a more consistent rate of assessments across municipalities.
Summary of provisions
Section 1: Amends paragraph (a) of subdivision 2 of the real property tax law
Section 2: Amends section 2 of the laws of 2013
Section 3: Amends article 4 of the real property tax law to introduce Title Six as the "Energy Related Public Utility Mass Real Property Central Assessment Program"
Section 499-tttt: Defines all relevant terms
Section 499-uuuu: Describes the annual fee associated
Section 499-vvvv: Provides an assessment of local energy-related public utility mass real property
Section 499-wwww: Provides an assessment ceiling to determine the extent to which local energy-related public utility mass real property value
Section 499-yyyy: Describes the equitable ratio of assessment
Section 499-zzzz: Explains the equalization rate
Section 499-aaaaa: Tentative determination of assessment ceiling; notice, complaints and hearing
Section 499-bbbbb: Final determination of assessment ceiling; certif- icate
Section 499-ccccc: Application of assessment ceiling; computation of exemption
Section 499-ddddd: Reports to commissioner
Section 499-eeeee: Inspection of accounts and property of public utili- ties
Justification
Local tax assessor's are well versed at determining residential and commercial property values. However, the standard assessment methods used for residential and commercial properties do not exist to determine the value of local energy-related public utility mass real property value. This has created inconsistencies from one municipality to anoth- er. These inconsistencies lead to lengthy legal battles between munici- palities, and the utility companies further straining local resources.
Fiscal implications
None to the State.
Effective date
This act shall take effect January 1, 2021
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.