[Adopted 10-15-2018 by L.L. No. 3-2018]
This article may be cited as the "Solar Energy System PILOT
Law of the Town of Kingsbury, Washington County, New York."
This article is adopted to ensure that the benefits of the community's
solar energy resource are available to the entire community by promoting
the installation of solar-energy-generating equipment through a payment
in lieu taxes (PILOT), granting reduced costs to system developers
and energy consumers and of providing a revenue stream to the entire
community.
This article is adopted under the authority granted by:
As used in this article, the following terms shall have the
meanings indicated:
The payment due under a PILOT agreement entered into pursuant
to Real Property Tax Law § 487(9).
January 1 of each year.
The manufacturer's nameplate capacity of the solar energy
system as measured in kilowatts (kW) or megawatts (MW) AC.
The owner of the property on which a solar energy system
is located or installed, or their lessee, licensee or other person
authorized to install and operate a solar energy system on the property.
A solar energy system with a nameplate generating capacity
less than 50 kW AC in size, installed on the roof or the property
of a residential dwelling (including multi-family dwellings), and
designed to serve that dwelling.
A.
Collectors, controls, energy storage devices, heat pumps and pumps,
heat exchangers, windmills, and other materials, hardware or equipment
necessary to the process by which solar radiation is:
B.
SOLAR ENERGY SYSTEM
It does not include pipes, controls, insulation or other equipment
which are part of the normal heating, cooling, or insulation system
of a building. It does include insulated glazing or insulation to
the extent that such materials exceed the energy efficiency standards
required by New York law.
An arrangement or combination of solar energy equipment designed
to provide heating, cooling, hot water, or mechanical, chemical, or
electrical energy by the collection of solar energy and its conversion,
storage, protection and distribution.
A.
The owner of a property on which a solar energy system is located
or installed (including any improvement, reconstruction, or replacement
thereof) shall enter into a PILOT agreement with the Town consistent
with the terms of this article, except for:
B.
The lessee or licensee of any owner of a property required to enter
into a PILOT agreement by this section, which owns or controls the
solar energy system, may enter into the PILOT agreement on behalf
of the owner of the property.
C.
C. Upon receipt of any notification from an owner or other person
of intent to install a solar energy system, the Supervisor shall immediately,
but in no case more than 60 days after receipt of the notification,
notify the owner or other person of the mandatory requirement for
a PILOT agreement pursuant to the terms of this article.
D.
Nothing in this article shall exempt any requirement for compliance
with state and local codes for the installation of any solar energy
equipment or a solar energy system, or authorize the installation
of any solar energy equipment or a solar energy system. All solar
energy systems must file a Real Property tax exemption application
pursuant to Real Property Tax Law § 487 to receive a tax
exemption.
Each PILOT agreement entered into shall include:
A.
Name and contact information of the owner, or other party authorized
to act upon behalf of the owner, of the solar energy system.
B.
The SBL number for each parcel or portion of a parcel on which the
solar energy system will be located.
C.
A requirement for 15 successive annual payments, to be paid commencing
on the first annual payment date after the effective date of the real
property tax exemption granted pursuant to Real Property Tax Law § 487.
D.
The capacity of the solar energy system, and that if the capacity
is increased or decreased as a result of a system upgrade, replacement,
partial removal or retirement of solar energy equipment, the annual
payments shall be increased or decreased on a pro rata basis for the
remaining years of the agreement.
E.
That the parties agree that under the authority of Real Property
Tax Law § 487 the solar energy system shall be considered
exempt from real property taxes for the fifteen-year life of the PILOT
agreement.
F.
That the PILOT agreement may not be assigned without the prior written
consent of the Town, which consent may not be unreasonably withheld
if the assignee has agreed, in writing, to accept all obligations
of the owner, except that the owner may, with advance written notice
to the Town but without prior consent, assign its payment obligations
under the PILOT agreement to an affiliate of the owner or to any party
who has provided or is providing financing to the owner for or related
to the solar energy system and has agreed, in writing, to accept all
payment obligations of the owner.
G.
That the owner, its successors, assigns, licensees and lessee will
waive their right to contest the assessed valuation attributable to
the solar energy system for the duration of the PILOT.
H.
That a notice of this agreement may be recorded by the owner at its
expense, and that the Town shall cooperate in the execution of any
notices or assignments with the owner and its successors.
I.
That the annual payment shall be calculated based upon the following:
(1)
The baseline payment shall be $2,000 per megawatt (MW) capacity,
based upon the total capacity for the solar energy system. The baseline
payment shall be adjusted for inflation every five years commencing
January 1, 2024, in accordance with the rates established by the United
States Bureau of Labor Statistics.
(2)
Applying the baseline payment, the annual payment due will be calculated
for 15 years, the life of the PILOT, based upon the percentages of
the baseline payment derived from utilizing the inverse double declining
balance method for calculating the depreciation of the solar energy
system over time, resulting in reductions of the actual payment due
and owing, calculating the annual payment obligations as follows:
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Year 1: 30% of the baseline payment
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Year 2: 33%
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Year 3: 36%
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Year 4: 38%
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Year 5: 41%
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Year 6: 44%
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Year 7: 47%
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Year 8: 49%
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Year 9: 52%
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Year 10: 60%
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Year 11: 68%
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Year 12: 76%
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Year 13: 84%
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Year 14: 92%
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Year 15: 100%.
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J.
That if the annual payment is not paid when due, that upon failure
to cure within 30 days, the Town may cancel the PILOT agreement without
notice to the owner, and the solar energy system shall thereafter
be subject to taxation at its full assessed value.
Should any provision of this article be declared by the courts
to be unconstitutional or invalid, such decision shall not affect
the validity of this article as a whole or any part thereof other
than the part so decided to be unconstitutional or invalid.
This article shall be effective upon its filing with the Secretary
of State in accordance with the Municipal Home Rule Law and shall
apply to all solar energy systems constructed hereafter.
