Property Tax Alert–New York

January 2005

In regards to property tax purposes, a utility company's power plant was reclassified as class four commercial property, rather than class three utility property, because it shared none of the common characteristics of a utility and because the price at which it sold its electricity on the competitive wholesale generation market was not set by the Public Service Commission or another regulatory agency. Property tax statutory provisions defined "utility real property" as real property, subject to the supervision of the state Department of Public Service or another state or federal regulatory agency, that was used in the generation of electricity.

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