Bill Text: NY S02389 | 2019-2020 | General Assembly | Introduced


Bill Title: Grants eligibility for the tax abatement for industrial and commercial construction work in cities having a population of one million or more, to certain electric generating facilities the operation of which commenced in 2012.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2020-02-25 - RECOMMIT, ENACTING CLAUSE STRICKEN [S02389 Detail]

Download: New_York-2019-S02389-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          2389
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 24, 2019
                                       ___________
        Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Cities
        AN ACT to amend the real property tax law and the administrative code of
          the city of New York, in relation to applications by certain  electric
          generating facilities for tax abatements for industrial and commercial
          construction  work  on  properties  in  a  city of one million or more
          persons
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. Legislative findings. The legislature hereby finds that the
     2  2011  amendment  to  the industrial and commercial abatement program was
     3  successful in preventing a large increase in capacity  rates  for  elec-
     4  tricity that would have cost ratepayers in the city of New York hundreds
     5  of  millions  of  dollars  had the law not been changed. However, in the
     6  haste to adopt that law, a new peaking  power  plant  fell  through  the
     7  cracks  and  has been paying property taxes since it began operations in
     8  2012, even though the 2011 statute clearly intended that industrial  and
     9  commercial  abatement  program  benefits  be  provided  to peaking power
    10  plants as a right. This act would correct that defect in the statute and
    11  enable the facility  to  receive  industrial  and  commercial  abatement
    12  program benefits prospectively.
    13    §  2.  Subdivision  17  of section 489-aaaaaa of the real property tax
    14  law, as amended by chapter 28 of the laws of 2011, is amended to read as
    15  follows:
    16    17. "Utility property" means property and equipment  as  described  in
    17  paragraphs  (c),  (d), (e), (f) and (i) of subdivision twelve of section
    18  one hundred two of this chapter that is used in the ordinary  course  of
    19  business  by  its  owner or any other entity or property as described in
    20  paragraphs (a) and (b) of subdivision twelve of section one hundred  two
    21  of  this  chapter  that is owned by any entity that uses in the ordinary
    22  course of business property and equipment  as  described  in  paragraphs
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08403-01-9

        S. 2389                             2
     1  (c),  (d), (e), (f) and (i) of subdivision twelve of section one hundred
     2  two of this chapter, without regard to the classification of such  prop-
     3  erty  and  equipment  for real property tax purposes pursuant to section
     4  eighteen  hundred two of this chapter, except that any such property and
     5  equipment used solely to serve the building to which they  are  attached
     6  shall  not  be deemed utility property. Notwithstanding any provision of
     7  this title to the contrary, peaking units shall not be considered utili-
     8  ty property. For purposes of this title, "peaking  unit"  shall  mean  a
     9  generating  unit  that:  (a)  is  determined by the New York independent
    10  system operator or a federal or New York state energy regulatory commis-
    11  sion to constitute a peaking unit as set forth in  section  5.14.1.2  of
    12  the  New  York  independent  system operator's market administration and
    13  control area services tariff, as such term existed as  of  April  first,
    14  two  thousand eleven; or (b) has an annual average operation, during the
    15  calendar year preceding the taxable status date, of less  than  eighteen
    16  hours  following each start of the unit; for purposes of calculating the
    17  annual average, operations during any period covered by any major  emer-
    18  gency  declaration  issued  by the New York independent system operator,
    19  northeast power coordinating council, or other similar entity  shall  be
    20  excluded; or (c) notwithstanding the requirements and provisions of this
    21  title,   any   peaking   unit  that  was  planned,  approved  and  under
    22  construction between the effective date of this title and the  effective
    23  date  of  chapter  twenty-eight  of the laws of two thousand eleven, and
    24  upon going into service exclusively  provides  electricity  to  Zone  J,
    25  shall  be  deemed  eligible  for  the  benefits of this title; provided,
    26  however, that the benefit period for a peaking  unit  shall  be  as  set
    27  forth  in  paragraph  (b-1) of subdivision three of section four hundred
    28  eighty-nine-bbbbbb of this title; and provided, further, that such bene-
    29  fits shall commence upon the effective date of this paragraph. A  "peak-
    30  ing  unit"  under  this  title  shall  include all real property used in
    31  connection with the generation of electricity, and any  facilities  used
    32  to  interconnect  the  peaking  unit  with  the electric transmission or
    33  distribution system, but shall not include any facilities that are  part
    34  of the electric transmission or distribution system; it may be comprised
    35  of  a  single  turbine and generator or multiple turbines and generators
    36  located at the same site. Notwithstanding any provision of this title to
    37  the contrary, a peaking unit shall be  considered  industrial  property,
    38  provided  however that the benefit period for a peaking unit shall be as
    39  set forth in paragraph  (b-1)  of  subdivision  three  of  section  four
    40  hundred eighty-nine-bbbbbb of this title.
    41    § 3. Subdivision q of section 11-268 of the administrative code of the
    42  city  of  New  York,  as  amended  by chapter 28 of the laws of 2011, is
    43  amended to read as follows:
    44    q. "Utility property" means property and  equipment  as  described  in
    45  paragraphs  (c),  (d), (e), (f) and (i) of subdivision twelve of section
    46  one hundred two of the real property tax law that is used in  the  ordi-
    47  nary  course of business by its owner or any other entity or property as
    48  described in paragraphs (a) and (b) of subdivision twelve of section one
    49  hundred two of such law that is owned by any entity  that  uses  in  the
    50  ordinary course of business property and equipment as described in para-
    51  graphs  (c),  (d), (e), (f) and (i) of subdivision twelve of section one
    52  hundred two of such law, without regard to the  classification  of  such
    53  property  and  equipment  for  real  property  tax  purposes pursuant to
    54  section eighteen hundred two of such law, except that any such  property
    55  and  equipment  used  solely  to  serve  the  building to which they are
    56  attached shall not  be  deemed  utility  property.  Notwithstanding  any

        S. 2389                             3
     1  provision  of  this  part  to  the  contrary, peaking units shall not be
     2  considered utility property. For purposes of this part,  "peaking  unit"
     3  shall  mean  a  generating  unit that: (a) is determined by the New York
     4  independent  system operator or a federal or New York state energy regu-
     5  latory commission to constitute a peaking unit as set forth  in  section
     6  5.14.1.2  of  the New York independent system operator's market adminis-
     7  tration and control area services tariff, as such  term  existed  as  of
     8  April  first,  two  thousand eleven; or (b) has an annual average opera-
     9  tion, during the calendar year preceding the  taxable  status  date,  of
    10  less  than eighteen hours following each start of the unit; for purposes
    11  of calculating the annual average, operations during any period  covered
    12  by  any  major  emergency declaration issued by the New York independent
    13  system operator, northeast power coordinating council, or other  similar
    14  entity  shall  be  excluded; or (c) notwithstanding the requirements and
    15  provisions of this part, any peaking unit that was planned, approved and
    16  under construction between the effective date of title two-F of  article
    17  four  of  the  real  property  tax law and the effective date of chapter
    18  twenty-eight of the laws of two thousand eleven,  and  upon  going  into
    19  service  exclusively  provides  electricity  to  Zone J, shall be deemed
    20  eligible for the benefits of this  part;  provided,  however,  that  the
    21  benefit  period  for  a  peaking unit shall be as set forth in paragraph
    22  two-a of subdivision c of section 11-269 of  this  part;  and  provided,
    23  further,  that  such  benefits shall commence upon the effective date of
    24  this paragraph. A "peaking unit" under this part shall include all  real
    25  property  used in connection with the generation of electricity, and any
    26  facilities used to interconnect the peaking unit with the electric tran-
    27  smission or distribution system, but shall not  include  any  facilities
    28  that  are  part  of the electric transmission or distribution system; it
    29  may be comprised of a single turbine and generator or multiple  turbines
    30  and  generators located at the same site.  Notwithstanding any provision
    31  of this part to the contrary, a peaking unit shall be considered  indus-
    32  trial  property,  provided however that the benefit period for a peaking
    33  unit shall be as set forth  in  paragraph  two-a  of  subdivision  c  of
    34  section 11-269 of this part.
    35    § 4. This act shall take effect immediately.
feedback