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Meetings

Local Government: May 25, 2011

Calendars

Active List: Jun 6, 2011 , Floor Calendar: Jun 1, 2011 , Floor Calendar: Jun 2, 2011 , Floor Calendar: Jun 6, 2011

Votes

Memo

BILL NUMBER:S5163A

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.

Text

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