Permits municipal entities to waive property and other taxes levied against the property of a municipal electric company.
Ayes (8): Martins, Ball, Little, McDonald, Ritchie, Stewart-Cousins, Oppenheimer, Klein
TITLE OF BILL: An act to amend the real property tax law, in relation to permitting municipal entities to waive property and other taxes levied against the property of a municipal electric company
PURPOSE: To allow municipalities the flexibility to waive taxes levied on the property of a neighboring municipal electric company.
SUMMARY: Section 1 amends Section 406 of the Real Property Tax Law by creating a new subdivision which allows municipalities to issue an agreement in writing with a neighboring municipal electric company to offer tax exemptions for property outside the company's corporate limits.
Section 2 provides this act shall take effect on the thirtieth day after it shall have become law.
JUSTIFICATION: Small municipalities across the state provide electric service to their residents through electric distribution systems run by the municipalities themselves. At times, part of a municipality's system might be located within a neighboring municipality.
This legislation would allow the neighboring municipality, if it is so close, to waive property and other taxes levied upon that property. Similar provisions exist for water and sewer facilities under current law. Neighboring municipalities could conceivably work out agreements regarding waivers of taxes levied upon each other's, property, thus lowering that tax burden on each of the municipalities' residents.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: This act shall take effect on the thirtieth day after it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 5163--A 2011-2012 Regular Sessions IN SENATE May 3, 2011 ___________Introduced by Sen. RITCHIE -- 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 AN ACT to amend the real property tax law, in relation to permitting municipal entities to waive property and other taxes levied against the property of a municipal electric company THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 406 of the real property tax law is amended by adding a new subdivision 8 to read as follows: 8. REAL PROPERTY OWNED BY A MUNICIPAL CORPORATION NOT WITHIN ITS CORPORATE LIMITS WHILE USED FOR A MUNICIPAL ELECTRICAL GENERATION AND DISTRIBUTION SYSTEM, INCLUDING NECESSARY CONNECTIONS AND APPURTENANCES, SHALL BE WHOLLY OR PARTIALLY EXEMPT FROM TAXATION AND WHOLLY OR PARTIAL- LY EXEMPT FROM SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS, BY ANY MUNICIPAL CORPORATION IN WHICH LOCATED, PROVIDED THE GOVERNING BOARD THEREOF SHALL SO AGREE IN WRITING. S 2. This act shall take effect on the thirtieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09422-02-1