BILL NUMBER: S8978A
SPONSOR: RYAN
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to providing an
exemption against certain fiber optic cable assessments for municipal
fiber optic broadband companies in Erie county; and providing for the
repeal of such provisions upon expiration thereof
 
PURPOSE:
To incentivize the development and deployment of municipal broadband in
Erie County.
 
SUMMARY OF PROVISIONS:
Section 1: creates a new section (§ 431) of the real property tax law,
which specifies that municipal fiber optic networks in Erie County and
municipal fiber optic cable in Erie County is exempt from real property
taxes. Specifies that municipal fiber optic broadband companies are
owned by municipalities or a non-profit local authority. Requires that
municipal broadband companies shall use contractors that adhere to state
labor standards, including prevailing wage requirements.
Section 2: effective date.
 
JUSTIFICATION:
Reliable, affordable broadband access is essential for New Yorkers to be
able to participate in, contribute to, and succeed in modern society.
Studies show that broadband access has a positive impact on individuals
and communities. However, reliable, affordable broadband is not avail-
able to every New Yorker. According to the NYS Comptroller, as of 2021,
more than one million (or 13.8% of the state) of households do not have
access to broadband. One in three low-income households do not have
access. Some such households are in communities without broadband
infrastructure. Others are unable to fit the cost of a broadband
subscription into their budget without foregoing other essentials. These
disparities in access create a "digital divide."
One potential means of closing the digital divide is increasing the
number of publicly owned or "open access" fiber optic broadband compa-
nies across the state. This is the primary goal of the ConnectALL Munic-
ipal Infrastructure Program, which provides state grants to construct
last mile, open access broadband infrastructure. This open access
broadband can then be provided directly to consumers via a municipal
entity or affiliated non-profit, or internet service providers may
contract to use the infrastructure to provide broadband access to
consumers. These buildouts are meant to complement existing carrier
infrastructure, and direct resources to unserved and underserved commu-
nities.
This legislation endeavors to incentivize the development and deployment
of open access broadband by ensuring that municipal entities and nonpro-
fits will not have to pay property taxes on the infrastructure. This is
similar to the exemptions provided for utilities and broadcasting, and
would demonstrate that the state recognizes the essential nature of
broadband access.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
LOCAL FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed 2 years after such date and shall apply to assessment rolls
prepared on the basis of taxable status dates occurring on or after such
date.