Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Rptl 487 Overview topic
No spam. Unsubscribe anytime.
Town of Ancram workshop hears overview of Real Property Tax Law §487 and local options
Summary
A legal adviser told Ancram officials that Real Property Tax Law §487 automatically exempts the increase in value from solar installations unless the town adopts a local law to opt out; the board reviewed three options: opt out, require negotiated PILOTs, or adopt a continuing local-law notice requiring pilots.
An adviser summarized Real Property Tax Law §487 and the choices available to the Town of Ancram, telling the board that the statute "provides an exemption from real property tax for any increase in value attributable to a solar energy system that's installed on property." He said the exemption is automatic statewide unless a municipality adopts a local law to opt out, in which case the increase in value associated with the solar equipment would be taxable.
The presenter laid out three practical options for the town: (1) adopt a local law to opt out of the exemption so all solar-related value is taxable; (2) leave the exemption in place but require a payments-in-lieu-of-taxes (PILOT) agreement negotiated with each developer; or (3) adopt a local law that provides continuing notice so the town requires PILOTs for systems of a specified type or size without issuing individual notices. "You could take into account any changes that are made to the property, through provisions in the agreement that would allow for escalations based on increasing the nameplate capacity," he said. The adviser offered to draft model local-law language or a notice template if the board directs him to proceed.
