Bill Text: NY S09852 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes an abatement and exemption from real property taxes for capital improvements to reduce carbon emissions in cities with a population of one million or more.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-05 - REFERRED TO RULES [S09852 Detail]

Download: New_York-2023-S09852-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9852

                    IN SENATE

                                      June 5, 2024
                                       ___________

        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the real property tax law, in relation  to  establishing
          an  abatement  and  exemption  from  real  property  taxes for capital
          improvements to reduce carbon emissions; and providing for the  repeal
          of such provisions upon expiration thereof

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Legislative intent. New York's nation leading climate  law,
     2  the  climate  leadership  and  community protection act of 2019 (CLCPA),
     3  requires the state to reduce its greenhouse gas emissions to 40  percent
     4  below  1990  levels  by  2030, and 85 percent below 1990 levels by 2050,
     5  among other goals. At the same time, New York city's local law number 97
     6  for the year 2019 requires buildings over 25,000 square feet  to  reduce
     7  their  carbon  emissions to comply with increasingly stringent emissions
     8  limits. While New York's  building  stock  accounts  for  more  than  25
     9  percent  of  statewide  greenhouse gas emissions and transportation is a
    10  top emitter, in New York city that ratio  is  reversed,  with  buildings
    11  accounting  for approximately 70 percent of greenhouse gas emissions. As
    12  such, reaching the state and city's climate goals will  require  signif-
    13  icant investment to decarbonize buildings including through electrifica-
    14  tion,  energy  efficiency,  and  the  use of new technologies and energy
    15  sources. The use of this targeted abatement, which would be available to
    16  support all property owners that are meaningfully  engaged  in  reducing
    17  carbon  emissions will ensure the success of the CLCPA and local law 97.
    18  This legislation will benefit all  New  Yorkers  by  ensuring  that  our
    19  buildings can play a vital role in decarbonization.
    20    §  2.  The  real  property  tax law is amended by adding a new section
    21  488-b to read as follows:
    22    § 488-b. Abatement and exemption from real property taxes for  capital
    23  improvements to reduce carbon emissions. 1. Any city having a population
    24  of  one  million  or more, acting through its local legislative body, is
    25  authorized and empowered to determine that incentives  in  the  form  of
    26  abatement  and/or  exemption  of  real  property  taxes are necessary to

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15839-01-4
        S. 9852                             2

     1  encourage carbon emissions reduction in such city and to enact  a  local
     2  law  providing  that  such  benefits shall be provided in the manner set
     3  forth in this title.
     4    2.  For  the  purposes of this section, the following terms shall have
     5  the following meanings:
     6    (a) "Eligible real property" shall mean a covered building as  defined
     7  in  section 28-320.1 of the administrative code of the city of New York,
     8  or an appropriate subset of such  covered  buildings  as  determined  by
     9  local law.
    10    (b)  "Eligible  improvements" shall include categories of work located
    11  at eligible real property that are expected to result in a reduction  of
    12  greenhouse  gas emissions for the building, including but not limited to
    13  full or partial building  electrification,  building  envelope  improve-
    14  ments,  the  installation of onsite clean energy generation, storage, or
    15  electric vehicle charging infrastructure, or other measures that  reduce
    16  energy consumption as determined by local law provided however that such
    17  work  shall have commenced on or after January first, two thousand twen-
    18  ty-two and shall be completed by  December  thirty-first,  two  thousand
    19  twenty-nine.
    20    (c)  "Full or partial building electrification" shall mean the instal-
    21  lation and use of energy efficient electric-based heating,  cooling  and
    22  domestic  hot  water  systems to displace the use of fossil fuel sources
    23  (e.g. fuel oil, natural gas, district steam) and/or less efficient elec-
    24  tric-based heating systems.
    25    3. Eligible real property reconstructed, altered  or  improved  subse-
    26  quent  to  the effective date of this section shall, upon enactment of a
    27  local law authorizing  such  exemption,  be  exempt  from  taxation  and
    28  special  ad  valorem  levies to the extent provided in this section. Any
    29  exemption and/or abatement permitted pursuant to this section shall take
    30  effect no sooner than the July first next succeeding the effective  date
    31  of this section.
    32    4.  Subject  to  the provisions of local law, any increase in assessed
    33  valuation of eligible real property resulting from eligible improvements
    34  may be exempt from taxation for local purposes for a  period  of  up  to
    35  twenty years.
    36    5.  Subject  to the provisions of local law, an eligible real property
    37  may be eligible for an abatement of real property taxes  of  no  greater
    38  than  twenty  years  that  shall  not  exceed  the  cost of the eligible
    39  improvements.
    40    6. Notwithstanding the provisions of any state or local law,  rule  or
    41  regulation  to  the contrary, any exemption or abatement shall be avail-
    42  able notwithstanding the receipt of any other benefit under state, local
    43  or federal law.
    44    7. During the period of tax exemption or abatement  pursuant  to  this
    45  section,  the  exemption or abatement may be revoked upon a violation of
    46  applicable oversight laws, where an agency with jurisdiction to  enforce
    47  such  laws  has  requested  a suspension of abatement or exemption based
    48  upon violations of the multiple dwelling law, the  local  building  code
    49  and the local housing maintenance code, or other applicable law or regu-
    50  lation.    The benefits of this section may be revoked or reduced upon a
    51  finding by the agency with jurisdiction to enforce such laws that:
    52    (a) the application for benefits hereunder contains a false  statement
    53  or false information as to a material matter or omits a material matter;
    54    (b)  real  estate  taxes, water and sewer charges, payments in lieu of
    55  taxes or other municipal charges are due and owing  for  more  than  one
    56  year;
        S. 9852                             3

     1    (c)  the  eligible  real  property fails to submit a report to the New
     2  York city department of buildings as required by section  28-320.3.7  of
     3  the administrative code of the city of New York; or
     4    (d)  after  receiving  notice  of  such a failure, that such owner has
     5  failed to cure the deficiency within ninety days.
     6    8. The local agencies of government charged with the administration of
     7  this section may promulgate rules  and  regulations  to  carry  out  the
     8  provisions of this section.
     9    §  3.  This  act shall take effect immediately and shall expire and be
    10  deemed repealed December 31, 2029.