Real Property Tax Assessment staff told the Lewis County Board of Legislators that a state court has declared Real Property Tax Law
575-b unconstitutional, a decision county staff said protects local assessors' traditional valuation authority for large solar and wind projects.

Why it matters: The state's appraisal model — a discounted-cash-flow approach included in RPTL
575-b that many counties and assessors had criticized for reducing assessed values of renewable-energy projects — had been rolled out by the Department of Tax and Finance and applied to projects over 1 megawatt. A court ruling in favor of Schoharie County, filed May 2024 and decided by Judge James Farrell in a 24-page order received by Lewis County staff, found the statute unconstitutional, county assessment staff said.

What county staff reported: Candy Aiken of Real Property Tax Assessment reviewed the background of the appraisal model, explaining it was developed by the state and applied to new and existing projects, and said courts previously issued stays while procedural challenges were litigated. She said Lewis County assessors had not applied the state model to existing wind projects and had only used it selectively for smaller solar projects. Aiken said no developers in Lewis County had filed grievances against current assessments, and county assessors planned to maintain the pre-model assessments for the county's projects while an appeal of the decision is expected.

Quoted from the meeting: "He determined that Real Property Tax Law 575-b is unconstitutional," Candy Aiken said of the judge's order. "So we feel that this is a huge victory for the assessing community, the county directors, and all the municipalities that have allowed large scale projects to come into their communities." She added that the state will likely appeal the ruling.

What the ruling does and does not do: According to Aiken's account to the board, the ruling restores assessors' authority to value large-scale renewable-energy projects without being required to use the state appraisal model. Aiken warned that the state is likely to appeal, and that any final effect could change depending on appellate outcomes. Aiken said Lewis County assessors "did the right thing by keeping the assessments where they were" and noted developers had not filed grievances to challenge local assessments.

Local implications: Staff said the decision helps preserve tax revenue that municipalities rely on when large-scale renewable projects locate in their borders. County officials also said they had previously hired outside counsel in other counties' litigation (the transcript references Schoharie County's Article 78 challenge) and will monitor the state's next steps.

Ending: County assessment staff recommended continued monitoring of litigation and noted that an appeal by the state is expected, meaning the legal status and valuation approach for future or contested projects could change pending higher-court rulings.