On January 1, 2020, the new Real Property Tax Law § 575-a goes into effect, requiring any individual or entity owning, operating, or managing an electric generating facility in New York State to file an annual report with the commissioner of tax and finance by April 30 that must include the inventory, revenue, and expenses associated with the operation of the facility relative to the most recent fiscal year. The required submission form is currently being developed.
Real Property Tax Law § 575-a defines an electric generating facility as “any facility that generates electricity for sale, directly or indirectly, to the public, including the land upon which the facility is located, any equipment used in such generation, and equipment leading from the facility to the interconnection with the electric transmission system.” The definition excludes equipment in the electric transmission system and electric generating equipment owned or operated by residential customers of electric generating facilities, including the land where the equipment is located, if located and used at the residence.
Historically, electric generating facility owners, operators, and managers supplied information to the NYS Office of Real Property Tax Services (ORPTS) upon the agency’s request for information related to the facility’s condition, planned improvements, revenue, expenses, and other relevant data to assist ORPTS in valuing the property. Failure to submit information resulted in ORPTS making erroneous assumptions in their valuation model that would be reflected in the utility advisory appraisals issued to the requesting municipal jurisdictions.
However, after the new law goes into effect, the failure of any electric generating facility owner, operator, or manager to make the required reporting by April 30 will result in a $10,000 penalty for every failure to report and up to an additional $1,000 per each day after until the report is filed.
If you have any questions regarding the content of this alert, please contact Amy D’Ambrogio, counsel, at adambrogio@barclaydamon.com, or another member of the firm’s Real Property Tax & Condemnation Practice Area.