Extends the real property tax exemption for nuclear powered electric generating facilities to 2031.
TITLE OF BILL: An act to amend the real property tax law, in relation to the tax exemption for nuclear powered electric generating facilities
To give local taxing jurisdictions with nuclear generating facilities the ability to negotiate tax agreements.
SUMMARY OF PROVISIONS:
Section 1 amends paragraph (e) of subdivision 2 of section 485 of the Real Property Tax Law to extend the effective date to January 1, 2031.
Section 2 states this act shall take effective immediately.
Currently, local taxing authorities, such as local governments and school districts, have the ability to enter into tax agreements with nuclear generating facilities. Localities were first granted this authority back in 2001.
Prior to 2001, nuclear generating facilities were taxed as real property and municipal assessors were required to determine the value of the property annually. Unlike most properties, the value of nuclear generating facilities depends largely on the market. This unpredictability created a dynamic where property values dramatically increased or decreased each year. Further, having the property on the assessment rolls increased the likelihood that the assessment would be challenged each year in court.
For localities with these facilities, this was problematic in stabilizing property taxes for residents and for future planning. Due to these factors, legislation was enacted in 2001 that gave localities the ability to negotiate tax agreements with nuclear facilities. Specifically, localities can enter into an agreement with the nuclear generating facility based on what is in the best interests of the community - they can place the nuclear facility on the assessment roll, enter into an IDA PILOT agreement or they can negotiate a tax agreement. Having these options has proved to be successful in communities with nuclear facilities and has helped stabilize property taxes.
This legislation will extend Section 485 of the Real Property Tax Law to January 1, 2031.
Assembly Bill 6639/Senate Bill 14 of 2001 (Chapter 87 of 2001).
None to state.
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6660 IN SENATE February 25, 2014 ___________Introduced by Sens. RITCHIE, MAZIARZ -- 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 the tax exemption for nuclear powered electric generating facilities THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (e) of subdivision 2 of section 485 of the real property tax law, as added by chapter 87 of the laws of 2001 and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (e) For assessment rolls with taxable status dates on or after January first, two thousand
[sixteen]THIRTY-ONE, or such earlier year as may be specified in the local law or resolution authorizing the exemption (provided that the term of the exemption shall not be reduced thereby to less than five years), the exemption provided by this section shall no longer apply and any agreement for payments in lieu of taxes for any facility theretofore exempt pursuant to this section shall no longer be in effect. Upon the request of the assessor of an assessing unit containing a nuclear powered electric generating facility, the commis- sioner shall provide an advisory appraisal of such facility for use on the municipal assessment roll with a taxable status date on or after January first, two thousand [sixteen]THIRTY-ONE. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13659-01-4