BILL NUMBER: S2177A
SPONSOR: PARKER
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to establishing
the "broadband investment tax stabilization (BITS) act" regarding tele-
communications equipment owned by other than a telephone company
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill provides parity between different sectors of the industry
delivering similar services and clarity on the taxation of wireless
telecommunications equipment owned by wireless service providers.
 
SUMMARY OF PROVISIONS:
Section 1. Short title. This act shall be known and may be cited as the
"Broadband Investment Tax Stabilization (BITS) Act". Please let us know
if you have any questions.
Section 2: Paragraph (i) of subdivision 12 of section 102 of the real
property tax law, as added by chapter 416 of the laws 1987, is amended.
Section 3: This act shall take effect immediately and shall apply to all
assessments that have not become final as of such date, whether or not a
taxpayer has filed a complaint with respect to an assessment under 524
of the real property tax law.
 
SUMMARY: OF AMENDMENTS:
Section 2 was amended to clarify that fiber optic cables, towers, perma-
nently affixed rooftop structures, and walk-in shelters shall not be tax
exempt.
 
JUSTIFICATION:
This legislation is intended to align the taxation of personal property
used to provide wireless telephone and Internet services with the legis-
lative intent of Real Property law. Since this property was first
constructed, wireless providers have paid real property taxes on fixed
structures such as cell towers and other poles used to hold the equip-
ment but not on the equipment itself as that has always been treated as
personal property of the wireless providers. For example, a carrier with
wireless equipment attached to a building pays rent to the building
owner like any other tenant but does not pay real property tax on the
equipment. A recent court of appeals decision has disrupted this under-
standing and could be interpreted to mean that wireless providers would
be required to pay tens, perhaps hundreds of millions of dollars in new
property taxes across the state. Wireless companies are among the larg-
est infrastructure builders in the nation. A significant increase in
taxes when these companies are poised to build thousands of new small
cell sites across the state will significantly curtail the build out,
reducing the number of new private sector jobs that would be created
while increasing the time it will take to build a 5G ready network. It
may also increase the digital divide as the increased costs will make it
very difficult to provide services in lower traffic areas of the state.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S04936-Referred to Local Government
2021-22: S5389 - Referred to Local Government
2019-20: S6511A - AMEND AND RECOMMIT TO LOCAL GOVERNMENT: PRINT NUMBER
6511A
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all assess-
ments that have not become final as of such date, whether or not a
taxpayer has filed a complaint with respect to an assessment under 524
of the real property tax law.