What's happening
The bill clarifies that most telecommunications equipment not owned by telephone companies is exempt from real property tax in New York.
Why it matters
Reduces potential tax burdens for non-telephone companies. By clarifying that most telecommunications equipment owned by entities other than telephone companies is not subject to property tax, the bill could lower operating costs for internet service providers, wireless companies, and others who own such infrastructure.
Encourages investment and network expansion. Exempting this equipment from property taxes may incentivize companies to invest more in upgrading and expanding telecommunications infrastructure, potentially improving broadband access and wireless coverage for consumers.
Addresses legal uncertainty and prior court decisions. The bill is a direct response to a court ruling that the legislature believes misinterpreted earlier laws. By clarifying the tax status of telecommunications equipment, it aims to resolve ongoing legal disputes and prevent future litigation over similar property tax assessments.
Limits scope of exemption to specific equipment types. Certain items—such as fiber optic cables, towers, steel rooftop structures, and walk-in shelters used for commercial mobile radio or mobile internet access—are specifically carved out or treated differently, meaning not all equipment receives the exemption, and local governments may still tax these specified assets.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
End Telecom Equipment Property Tax
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Print number 6511a
- Amend and recommit to local government
- Referred to local government
- Returned to senate
- Died in assembly
- Referred to real property taxation
- Delivered to assembly
- Passed senateVote 59–3
- Ordered to third reading cal.1800
- 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.
End Tax on Telecom Equipment
In Assembly Committee · Real Property Taxation · Sponsor Daniel Rosenthal
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6511--A
2019-2020 Regular Sessions
IN SENATE
June 14, 2019
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recommitted to the Committee on Local Government 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 real property tax law, in relation to telecommunications equipment owned by other than a telephone company
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The legislature finds that it is necessary to correct a decision of the court of appeals that erroneously overlooked or misconstrued section 1 of chapter 71 of the laws of 1985, sections 2, 6, and 7 of chapter 416 of the laws of 1987, and paragraph (i) of subdivision 12 of section 102 of the real property tax law. This act is intended to clarify that all equipment used for the transmission and switching of electromagnetic voice, video and data signals between different entities separated by air, street or other public domain, and related equipment necessary to the operation of such equipment or the modification of such signals required by such equipment, regardless of location, no longer constitutes real property subject to the real property tax law, even if any items of such equipment would otherwise constitute a fixture taxable under paragraph (b) of subdivision 12 of section 102 of the real property tax law.
§ 2. Paragraph (i) of subdivision 12 of section 102 of the real property tax law, as added by chapter 416 of the laws of 1987, is amended to read as follows:
(i) When owned by other than a telephone company as such term is defined in paragraph (d) [hereof] of this subdivision, all lines, wires, poles, supports and inclosures for electrical conductors upon, above and underground used in connection with the transmission or switching of electromagnetic voice, video and data signals between different entities
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13141-03-0
S. 6511--A 2
separated by air, street or other public domain, except that such property shall not include: (A) station connections; (B) fire and surveillance alarm system property; (C) such property used in the transmission of news wire services; [and] (D) such property used in the transmission of news or entertainment radio, television or cable television signals for immediate, delayed or ultimate exhibition to the public, whether or not a fee is charged therefor; and (E) such property, other than fiber optic cables, towers, permanently affixed steel rooftop structures and walk-in shelters, used in, providing for, or associated with, the transmission or switching of radio signals for the provision of commercial mobile radio service or mobile internet access service.
§ 3. This act shall take effect immediately and shall apply to all assessments that have not become final as of such date, whether or not a taxpayer has filed a complaint with respect to an assessment under section 524 of the real property tax law.
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 telecommuni- cations equipment owned by other than a telephone company
Purpose or general idea of bill
This bill provides parity between different sectors of the industry delivering similar services and clarity on the taxation of wireless telecommunications equipment owned by wireless service providers.
Summary of provisions
Section 1 provides the legislative finding of a need to amend the real property tax law regarding certain equipment used for the transmission and switching of electromagnetic voice, video and data signals.
Section 2 amends subdivision 12 of RPT section 102 by clarifying proper- ty that shall be exempt from real property taxation. Section 3 sets the effective date.
Summary of amendments
Section 2 was amended to clarify that fiber optic cables, towers, perma- nently affixed rooftop structures, and walk-in shelters shall not be tax exempt.
Justification
This legislation is intended to align the taxation of personal property used to provide wireless telephone and internet services with the legis- lative intent of Real Property law. Since this property was first constructed, wireless providers have paid real property taxes on fixed structures such as cell towers and other poles used to hold the equip- ment but not on the equipment itself as that has always been treated as personal property of the wireless providers. For example, a carrier with wireless equipment attached to a building pays rent to the building owner like any other tenant but does not pay real property tax on the equipment. A recent court of appeals decision has disrupted this under- standing could be interpreted to mean that wireless providers would be required to pay tens, perhaps hundreds of millions of dollars in new property taxes across the state. Wireless companies are among the larg- est infrastructure builders in the nation. A significant increase in taxes when these companies are poised to build thousands of new small cell sites across the state will significantly curtail the build out, reducing the number of new private sector jobs that would be created while increasing the time it will take to build a 5G ready network. It may also increase the digital divide as the increased costs will make it very difficult to provide services in lower traffic areas of the state.
Prior legislative history
This is a new bill.
Fiscal implications for state and local governments
None to the state.
Effective date
This act shall become effective immediately upon enactment and shall apply to all assessments that have not become final as of the date of enactment, whether or not a taxpayer has filed a complaint with respect to an assessment under section 524 of the real property tax law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.