S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9014
 
                           I N  A S S E M B L Y
 
                             February 2, 2024
                                ___________
 
 Introduced  by M. of A. RA -- read once and referred to the Committee on
   Real Property Taxation
 
 AN ACT to amend the real property tax  law,  in  relation  to  excluding
   privately owned water-works corporations from special franchise taxes
 
   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.  For  purposes of assessment and taxation a special franchise
 shall include the value of the tangible  property  situated  in,  under,
 above, upon or through any public street, highway, water or other public
 place  in  connection  therewith.  The  term special franchise 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 subdivi-
 sion 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 such crossing be
 the  continuation  of  an  occupancy  of another public street, highway,
 water or other public place.  THE TERM "SPECIAL  FRANCHISE"  SHALL  ALSO
 NOT  INCLUDE  ANY  WATER  SYSTEM PROPERTY OWNED BY A PRIVATE WATER-WORKS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14219-01-4
              

 A. 9014                             2
 
 CORPORATION, AS SUCH TERMS ARE DEFINED IN  SECTION  TWO  OF  THE  PUBLIC
 SERVICE LAW.
   §  2.  Section 485-d of the real property tax law, as added by chapter
 726 of the laws of 1985, is amended to read as follows:
   § 485-d. Water-works corporations. 1. Real property situated in a city
 with a population of one million or more owned by a  water-works  corpo-
 ration  subject  to  the  provisions  of the public service law and used
 exclusively for the sale,  furnishing  and  distribution  of  water  for
 domestic,  commercial  and public purposes, shall be wholly or partially
 exempt from taxation provided that the local legislative  body  of  such
 city  within  which  such  property  is  situated  adopts a local law so
 providing.
   2. REAL PROPERTY OWNED BY A PRIVATE WATER-WORKS CORPORATION SUBJECT TO
 THE PROVISIONS OF THE PUBLIC SERVICE LAW AND USED  EXCLUSIVELY  FOR  THE
 SALE,  FURNISHING AND DISTRIBUTION OF WATER FOR DOMESTIC, COMMERCIAL AND
 PUBLIC PURPOSES, SHALL BE WHOLLY OR PARTIALLY EXEMPT FROM TAXATION UNDER
 ARTICLE SIX OF THIS CHAPTER, PROVIDED THAT THE LOCAL LEGISLATIVE BODY OF
 SUCH CITY, COUNTY, TOWN, VILLAGE OR SCHOOL DISTRICT  WITHIN  WHICH  SUCH
 PROPERTY IS SITUATED ADOPTS A LOCAL LAW SO PROVIDING.
   §  3.  For  purposes of this act, any tax relief realized by a private
 water-works corporation shall be used to reduce current water rates  and
 offset future water rate increases.
   § 4. This act shall take effect immediately.