BILL NUMBER: S7389
SPONSOR: WALCZYK
 
TITLE OF BILL:
An act to amend the real property tax law and the public service law, in
relation to requiring a percentage of profits to be paid to a taxing
jurisdiction or land owner under certain agreements for the installation
and use of solar or wind energy systems
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would protect farm owners and municipalities from depreciating
values of payment programs solar and wind energy companies offer up.
 
SUMMARY OF PROVISIONS:
Section 1: Amends subdivision 9 of section 487 of the real property tax
law by adding a new paragraph (d).
Section 2: Amends the public service law by adding section 66-v.
 
JUSTIFICATION:
Many farmers and municipalities have land they no longer wish to possess
for a variety of reasons. Solar and wind energy companies have begun to
see potential for these lands. Typically, these kind of agreements are
over a period of 20, 25, or even 30 years. Energy companies usually
offer a fixed amount of money per acre for private landowners: munici-
palities usually use payment in lieu of taxes (PILOT) programs. The
issue lies in the fixed nature of these prices; over time, these
contracts lose money to the detriment of the lessors.
With this bill, companies would be required to offer at least 12.5% of
profits made from the sale of energy on said lessor's land. This will
help landowners receive a reliable stream of income that will keep up
with the pace of inflation. This is a common-sense bill that will help
our farmers and municipalities keep their land and profit off of it for
years to come.
 
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Undetermined, but would likely increase local government income.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all contracts
awarded on and after such date.

Statutes affected:
S7389: 487 real property tax law, 487(9) real property tax law