STATE OF NEW YORK
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4138--A
2017-2018 Regular Sessions
IN ASSEMBLY
February 1, 2017
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Introduced by M. of A. MAGEE -- read once and referred to the Committee
on Real Property Taxation -- recommitted to the Committee on Real
Property Taxation in accordance with Assembly Rule 3, sec. 2 --
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 property tax
benefits for anaerobic digestion of agricultural waste; and to repeal
certain provisions of such law relating thereto
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Subdivision 1 of section 483-a of the real property tax
2 law, as amended by section 1 of part P of chapter 57 of the laws of
3 2016, is amended to read as follows:
4 1. The following structures permanently affixed to [agricultural] land
5 shall be exempt from taxation, special ad valorem levies and special
6 assessments: (a) structures for the purpose of preserving and storing
7 forage in edible condition; (b) farm feed grain storage bins; (c)
8 commodity sheds; (d) bulk milk tanks and coolers used to hold milk
9 awaiting shipment to market; and (e) manure storage, handling and treat-
10 ment facilities, including but not limited to, composting of agricul-
11 tural materials, such as livestock manure and farming wastes, food resi-
12 duals or other organic wastes associated with food production or
13 consumption with at least fifty percent by weight of its feedstock on an
14 annual basis being livestock manure, farming wastes and crops grown
15 specifically for use as composting feedstock. "Food residuals" means
16 organic material, including, but not limited to, food scraps, food proc-
17 essing residue, and related soiled or unrecyclable paper used in food
18 packaging, preparation or cleanup.
19 § 2. Paragraphs (e) and (f) of subdivision 1 of section 487 of the
20 real property tax law are REPEALED.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08793-03-8
A. 4138--A 2
1 § 3. Paragraph (d) of subdivision 1 of section 487 of the real proper-
2 ty tax law, as amended by chapter 515 of the laws of 2002, is amended to
3 read as follows:
4 (d) "Incremental cost" means the increased cost of a solar or wind
5 energy system [or farm waste energy system] or component thereof which
6 also serves as part of the building structure, above that for similar
7 conventional construction, which enables its use as a solar or wind
8 energy [or farm waste energy] system or component.
9 § 4. Subdivisions 2, 3, 4, 5 and 8 of section 487 of the real property
10 tax law, subdivisions 2, 3, 4, and 5 and paragraph (a) of subdivision 8
11 as amended by chapter 336 of the laws of 2017 and subdivision 8 as
12 amended by chapter 344 of the laws of 2014, are amended to read as
13 follows:
14 2. Real property which includes a solar or wind energy system, [farm
15 waste energy system,] micro-hydroelectric energy system, fuel cell elec-
16 tric generating system, micro-combined heat and power generating equip-
17 ment system, or electric energy storage equipment and electric energy
18 storage system approved in accordance with the provisions of this
19 section shall be exempt from taxation to the extent of any increase in
20 the value thereof by reason of the inclusion of such solar or wind ener-
21 gy system, [farm waste energy system,] micro-hydroelectric energy
22 system, fuel cell electric generating system, micro-combined heat and
23 power generating equipment system, or electric energy storage equipment
24 and electric energy storage system for a period of fifteen years. When a
25 solar or wind energy system or components thereof, [farm waste energy
26 system,] micro-hydroelectric energy system, fuel cell electric generat-
27 ing system, micro-combined heat and power generating equipment system,
28 or electric energy storage equipment and electric energy storage system
29 also serve as part of the building structure, the increase in value
30 which shall be exempt from taxation shall be equal to the assessed value
31 attributable to such system or components multiplied by the ratio of the
32 incremental cost of such system or components to the total cost of such
33 system or components. The exemption provided by this section is inappli-
34 cable to any structure that satisfies the requirements for exemption
35 under section four hundred eighty-three-e of this title.
36 3. The president of the authority shall provide definitions and guide-
37 lines for the eligibility for exemption of the solar and wind energy
38 equipment and systems, [farm waste energy equipment and systems,]
39 micro-hydroelectric equipment and systems, fuel cell electric generating
40 equipment and systems, micro-combined heat and power generating equip-
41 ment and systems and electric energy storage equipment and electric
42 energy storage system described in paragraphs (a), (b), (e), (f), (g),
43 (h), (i), (j), (k), (l), (m) and (n) of subdivision one of this section.
44 4. No solar or wind energy system, [farm waste energy system,] micro-
45 hydroelectric energy system, fuel cell electric generating system,
46 micro-combined heat and power generating equipment system, or electric
47 energy storage equipment and electric energy storage system shall be
48 entitled to any exemption from taxation under this section unless such
49 system meets the guidelines set by the president of the authority and
50 all other applicable provisions of law.
51 5. The exemption granted pursuant to this section shall only be appli-
52 cable to (a) solar or wind energy systems [or farm waste energy systems]
53 which are (i) existing or constructed prior to July first, nineteen
54 hundred eighty-eight or (ii) constructed subsequent to January first,
55 nineteen hundred ninety-one and prior to January first, two thousand
56 twenty-five, and (b) micro-hydroelectric energy systems, fuel cell elec-
A. 4138--A 3
1 tric generating systems, micro-combined heat and power generating equip-
2 ment systems, or electric energy storage equipment or electric energy
3 storage system which are constructed subsequent to January first, two
4 thousand eighteen and prior to January first, two thousand twenty-five.
5 8. (a) Notwithstanding the provisions of subdivision two of this
6 section, a county, city, town or village may by local law or a school
7 district, other than a school district to which article fifty-two of the
8 education law applies, may by resolution provide either (i) that no
9 exemption under this section shall be applicable within its jurisdiction
10 with respect to any solar or wind energy system [or farm waste energy
11 system] which began construction subsequent to January first, nineteen
12 hundred ninety-one or the effective date of such local law, ordinance or
13 resolution, whichever is later, and/or (ii) that no exemption under this
14 section shall be applicable within its jurisdiction with respect to any
15 micro-hydroelectric energy system, fuel cell electric generating system,
16 micro-combined heat and power generating equipment system, or electric
17 energy storage equipment or electric energy storage system constructed
18 subsequent to January first, two thousand eighteen or the effective date
19 of such local law, ordinance or resolution, whichever is later. A copy
20 of any such local law or resolution shall be filed with the commissioner
21 and with the president of the authority.
22 (b) Construction of a solar or wind energy system [or a farm waste
23 energy system] shall be deemed to have begun upon the full execution of
24 a contract or interconnection agreement with a utility; provided howev-
25 er, that if such contract or interconnection agreement requires a depos-
26 it to be made, then construction shall be deemed to have begun when the
27 contract or interconnection agreement is fully executed and the deposit
28 is made. The owner or developer of such a system shall provide written
29 notification to the appropriate local jurisdiction or jurisdictions upon
30 execution of the contract or the interconnection agreement.
31 § 5. This act shall take effect immediately and shall apply to the
32 taxable year of 2017 and thereafter.