Solar Farm Tax Law Tabled, Concluding More Research Is Needed – Public Opinion Is Varied
by Deb Alter
The Hoosick Town Board held its year-end meeting on December 28, preceded by a public hearing about solar farms and tax exemptions.
[private]William Ryan, Jr. the Town Attorney had drafted Local Law Number 4, which would override the NY State 15-year tax exemption for commercial, but not residential, solar installations, and allow the Town of Hoosick to levy taxes on these properties.
It should be noted that the tax exemption only applies to the increase in value resulting from the improvement by the solar installation – the original, unimproved assessed value remains taxable. The law also addresses tax exemptions for wind farms and farm-waste energy systems.
Many people came to ask questions and give their opinions on whether or not, and why, to allow the tax exemptions. It was clear from the start, that although the law had been drafted, it would not be voted on that night, that it was more or less to serve as a starting point for discussions on the topic.
Some people felt that the State law was originally meant for small residential solar systems, and that solar companies are taking advantage of the tax exemption; others, including Larry Bugbee, disagreed, saying that the Governor has been quite clear about promoting and encouraging green energy alternatives in NY State.
Some residents have expressed concern that the solar companies are getting the tax break even though the energy their solar arrays are producing is sold back to the grid without any benefit to the Town. Bugbee and Wally Sheffer also explained that the Town does, in fact, get a financial benefit, because the farmland already has an agricultural exemption that is greater than the one for solar farms. In other words, the farmer will actually pay higher taxes because the land would be considered commercial, and even with the tax exemption, it would be taxed at a higher rate than, say, a field of wheat or corn.
State Law 487 allows municipalities to override the tax exemption in whole. That is, all solar installations, including residential ones, would be non-exempt if the Town chooses to go in that direction. There is no guidance in the wording of the State Law that indicates if municipalities can tax commercial, but not residential systems. If the Town decided to do that, some said, there is a chance that the Town could face lawsuits. Supervisor Mark Surdam said that other communities he has reached out to seem to either be opting out of the state law altogether, or accepting it as is. The Association of Towns’ policy is that everybody gets the tax-exemptions, or nobody does.
Vicky Wysocki said that if the Town does not offer the tax exemptions, that it would be sending a negative message to solar companies and other businesses that are considering Hoosick, which implies that the Town isn’t willing to work with business. It was suggested that if the tax exemption goes away, the Hoosick Central School solar plan, which will save the District tens of thousands of dollars per year, would be out of the picture. The question is where to draw the line, and how to determine what benefits the landowners, the Town and the companies best. Some felt that the “greater good,” that is a smaller carbon footprint, should also be a considered in the decision-making process.
Town Assessor Tony Rice and attorney Ryan have done quite a bit of research, and there appears to be no hard and fast rules to follow, and that much more research needs to be done. It was suggested that Ryan send the draft of the proposed Local Law to the State Attorney General, the State Comptroller or the State Office of Real Property Services for feedback and advice, which Ryan agreed to do.
“We won’t pursue the law as written and without more information,” said Surdam. “We’re going to slow down, and do it right.”
It is important to note that this property tax is a wholly separate issue from the zoning issues being explored by the Solar Committee, which were not a topic at this public hearing, although Jeff Delurey suggested that it would be a good idea for whoever is working on this communicates with the Zoning Board Sub-Committee on Solar Farms.
End Of Year Meeting
When the Public Hearing closed at 7:10, the Board Meeting began. As it was the end-of the year meeting, not a lot of business happened.
Board discussion and a vote on Local Law of the Town of Hoosick for 2015, entitled “Real Property Taxation for Certain Solar or Wind Energy Systems or Farm Waste Energy Systems” were tabled.
Retiring Building Inspector Ed King thanked everyone, especially Rice and Town Clerk Sue Stradinger, for being so helpful. Surdam thanked him for all of his good work, and for coming back from his first retirement when the Town needed him.
Highway Superintendent Bill Shiland brought up the issue of Town employee time off without pay, and the Board agreed that there needs to be more clarity.
Bouncelinx is moving forward and pushing hard to get up and running. The necessary supporting concrete platforms are already installed.
Support For
Conservation Easements
On Local Farms
The Board authorized Supervisor Surdam to send out letters of support to the Agricultural Stewardship Association (ASA) in support of The Hy-Acres (Luke) Farm and the Tilldale (Tilley and Herrington) Farm.
Michael McCune has resigned from the Hoosick Housing Authority. There are now openings on that Board, as well as the Zoning and Planning Boards. Anyone interested in serving in any of these positions, please contact Supervisor Surdam or any Board Member.
Board Members Jenn Hyde and Eric Sheffer were sworn in on New Year’s Day at 11 am. There will be a Judges’ Audit meeting on Tuesday, January 12 at 6 pm.
The Organizational Meeting has been scheduled for Monday, January 11, 2016 at 6 pm, and the regular Board Meeting will start at 7 pm.[/private]