S T A T E O F N E W Y O R K
________________________________________________________________________
2559
2021-2022 Regular Sessions
I N A S S E M B L Y
January 19, 2021
___________
Introduced by M. of A. LAVINE -- read once and referred to the Committee
on Real Property Taxation
AN ACT to amend the real property tax law, in relation to excluding
water system property owned by water-works corporations from special
franchise tax
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 17 of section 102 of the real property tax law,
as amended by chapter 569 of the laws of 1996, is amended to read as
follows:
17. "Special franchise" means the franchise, right, authority or
permission to construct, maintain or operate in, under, above, upon or
through any public street, highway, water or other public place mains,
pipes, tanks, conduits, wires or transformers, with their appurtenances,
for conducting [water,] steam, light, power, electricity, gas or other
substance, EXCLUDING WATER. For purposes of assessment and taxation a
special franchise shall include the value of the tangible property situ-
ated in, under, above, upon or through any public street, highway, water
or other public place in connection therewith. The term special fran-
chise shall not include central office equipment or station equipment
(except public telephone terminal equipment) which first appears on
assessment rolls prepared on the basis of taxable status dates occurring
on or after October first, nineteen hundred ninety-five and which is
owned by a telephone company as defined in paragraph (d) of subdivision
twelve of this section, or owned by a telephone corporation as defined
in subdivision seventeen of section two of the public service law and
certified by the public service commission under section ninety-nine of
such law, nor shall it include property of a municipal corporation,
public benefit corporation or special district, nor shall it include a
crossing less than two hundred fifty feet in length of a public street,
highway, water or other public place outside a city or village, unless
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06659-01-1
A. 2559 2
such crossing be the continuation of an occupancy of another public
street, highway, water or other public place. THE TERM SPECIAL FRAN-
CHISE SHALL ALSO NOT INCLUDE ANY WATER SYSTEM PROPERTY OWNED BY A
WATER-WORKS CORPORATION AS SUCH TERMS ARE DEFINED IN SECTION TWO OF THE
PUBLIC SERVICE LAW.
§ 2. The taxable assessed valuation of any water system special fran-
chise property, as defined in subdivision 17 of section 102 of the real
property tax law, owned by a water-works corporation that is used for
conducting water on assessment rolls required by law to be completed and
filed on or after January first, two thousand twenty-one shall not
exceed the taxable assessed valuation of such real property on final
assessment rolls completed and filed on or after January first, two
thousand twenty; the taxable assessed valuation of such property on
assessment rolls required by law to be completed and filed on or after
January first, two thousand twenty-two shall not exceed eighty percent
of the taxable assessed valuation of such real property on final assess-
ment rolls completed and filed on or after January first, two thousand
twenty; the taxable assessed valuation of such property on assessment
rolls required by law to be completed and filed on or after January
first, two thousand twenty-three shall not exceed sixty percent of the
taxable assessed valuation of such real property on final assessment
rolls completed and filed on or after January first, two thousand twen-
ty; the taxable assessed valuation of such property on assessment rolls
required by law to be completed and filed on or after January first, two
thousand twenty-four shall not exceed forty percent of the taxable
assessed valuation of such real property on final assessment rolls
completed and filed on or after January first, two thousand twenty; and
the taxable assessed valuation of such property on assessment rolls
required by law to be completed and filed on or after January first, two
thousand twenty-five shall not exceed twenty percent of the taxable
assessed valuation of such real property on final assessment rolls
completed and filed on or after January first, two thousand twenty.
§ 3. For purposes of this act, any tax relief realized by a water-
works corporation shall be used to reduce current water rates and offset
future water rate increases.
§ 4. This act shall take effect immediately; provided, however, that
section one of this act shall take effect January 1, 2026.