Exempts a homeowner from any tax increases when installing a solar energy system on their home.
TITLE OF BILL: An act to amend the real property tax law, in relation to permanently exempting a homeowner from tax increases when installing a solar energy system on their home
PURPOSE: To exempt a homeowner from any property tax increase after installation of a solar energy system on their home
SUMMARY OF PROVISIONS: Section 1- amends subdivisions 2 of section 487 of the Real Property Tax law to remove the current limitation of 15 years on any increased assessment for wind, solar and farm waste to energy systems. Section 5 is amended to allow any home solar energy systems constructed after January 1, 2016 to receive this incentive. Section 8 is repealed to clarify that this tax exemption applies to county city, town, village and school taxes.
Section 2- contains the effective date
JUSTIFICATION: This legislation would modify the Real Property Tax law regarding real property which includes a solar energy system, wind energy system and farm waste system. Currently, there is a fifteen year real property tax increase exemption for anyone who installs the aforementioned systems. These structures provide positive benefits to the environment, a reduction in pollution caused by power plants striving to meet the needs of the local energy demand, reduces the demand of foreign oil and save residents money by providing clean free energy. The current exemption for fifteen years provides an incentive for the installation of such system however after the expiration of this exemption (15 years) the increase to real property tax is a discouragement for these upgrades. This legislation will permanently eliminate the increase to real property taxes which will provide further incentive for the market of individual alternative energy production and sustainability.
LEGISLATIVE HISTORY: 2011-12: A. 3544 Real Property; S. 3409 Local Governments 2009-10: A.4896/Real Property; S.4915/Local Govt/Finance/Rules 2008: A.11203/Real Property
FISCAL IMPLICATIONS: None
EFFECTIVE DATE: This act shall take immediately.
STATE OF NEW YORK ________________________________________________________________________ 2529 2013-2014 Regular Sessions IN SENATE January 18, 2013 ___________Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the real property tax law, in relation to permanently exempting a homeowner from tax increases when installing a solar ener- gy system on their home THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivisions 2, 5, 8 and 9 of section 487 of the real prop- erty tax law, subdivisions 2 and 8 as amended by chapter 515 of the laws of 2002, subdivision 8 as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, subdivision 5 as amended by chapter 366 of the laws of 2010 and subdivision 9 as added by chapter 608 of the laws of 2002, are amended to read as follows: 2. Real property which includes a solar or wind energy system or farm waste energy system approved in accordance with the provisions of this section shall be exempt from taxation to the extent of any increase in the value thereof by reason of the inclusion of such solar or wind ener- gy system or farm waste energy system
[for a period of fifteen years]. When a solar or wind energy system or components thereof or farm waste energy system also serve as part of the building structure, the increase in value which shall be exempt from taxation shall be equal to the assessed value attributable to such system or components multiplied by the ratio of the incremental cost of such system or components to the total cost of such system or components. 5. The exemption granted pursuant to this section shall only be appli- cable to solar or wind energy systems or farm waste energy systems which are (a) existing or constructed prior to July first, nineteen hundred eighty-eight [or], (b) constructed subsequent to January first, nineteen hundred ninety-one and prior to January first, two thousand fifteen OR (C) SOLAR ENERGY SYSTEMS CONSTRUCTED ON ONE, TWO, THREE OR FOUR FAMILY HOMES ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04147-01-3 S. 2529 2
[8. Notwithstanding the provisions of subdivision two of this section, a county, city, town or village may by local law or a school district, other than a school district to which article fifty-two of the education law applies, may by resolution provide that no exemption under this section shall be applicable within its jurisdiction with respect to any solar or wind energy system or farm waste energy system constructed subsequent to January first, nineteen hundred ninety-one or the effec- tive date of such local law, ordinance or resolution, whichever is later. A copy of any such local law or resolution shall be filed with the commissioner and with the president of the authority. 9. (a) A county, city, town, village or school district, except a school district under article fifty-two of the education law, that has not acted to remove the exemption under this section may require the owner of a property which includes a solar or wind energy system which meets the requirements of subdivision four of this section, to enter into a contract for payments in lieu of taxes. Such contract may require annual payments in an amount not to exceed the amounts which would otherwise be payable but for the exemption under this section. (b) The payment in lieu of a tax agreement shall not operate for a period of more than fifteen years, commencing in each instance from the date on which the benefits of such exemption first become available and effective.]S 2. This act shall take effect immediately.