BILL NUMBER: S4327
SPONSOR: ASHBY
 
TITLE OF BILL:
An act to amend the tax law and the public service law, in relation to
providing a tax credit for certain utility bill payments and establish-
ing a moratorium on certain surcharges thereon; and providing for the
repeal of certain provisions of the public service law upon expiration
thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
To reduce consumer utility bills.
 
SUMMARY OF PROVISIONS:
Section 1: Amends the tax law to create a utility tax credit for 2025
and 2026 equal to the difference between the consumer's bill in the
current year versus the previous three-year average bill.Defines "Utili-
ty Costs" as heat, gas, electricity, and other services under the juris-
diction of the PSC.
Section 2. Creates a one-year moratorium on the collection of PSC taxes
and surcharges placed on and collected through utility bills.
 
JUSTIFICATION:
Right now, the state of New York faces an affordability crisis and no
sector is more affected than the utility sector, which continues to face
steep increases. A March 2024 report by the climate think tank Switchbox
found that 1 in 4 customers in New York can't afford to pay their utili-
ty bills. Yet rates keep increasing. This legislation aims to offset
that increase, by creating a tax credit to cover the difference between
bills in 2025 and 2026 when compared with the previous three-year aver-
age. It also establishes a moratorium on the taxes collected on your
bill.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S.4875 - referred to Budget and Revenue
2021-22: S.8671 - referred to Budget and Revenue
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S4327: 606 tax law