Onondaga County opts out of state law exempting solar and wind farms from property taxes

Syracuse, N.Y. – Onondaga County will opt out of a state law that exempts commercial wind and solar farms from property taxes. Lawmakers voted 14-3 today to opt out, at the request of County Executive Ryan McMahon’s administration.

The move means that future wind and solar farms, as well as other renewable energy investments, will be fully taxed rather than tax-exempt.

Developers can still seek payment-in-lieu-of-tax arrangements with local governments and school districts to reduce their tax bills, but county officials say they are unlikely to grant PILOTs for the county-owned portion of the property.

During the debate ahead of Tuesday’s vote, Democratic leader Chris Ryan wanted to shelve the legislation to study its potential effects on renewable energy projects. Legislator Maurice Brown, D-Syracuse, said he fears developers will shun the county once the tax exemption disappears.

Ryan’s motion to refer the proposal back to committee was defeated on a party-line vote: six Democrats and Republican Ken Bush Jr. voted to defer the proposal, while 10 other Republicans voted against it.

The local law to eliminate the automatic tax exemption passed by a vote of 14 to 3, with Brown and Democrats Dan Romeo and Nodesia Hernandez voting against.

Several Republicans said the change would simplify property tax administration for renewable energy projects. The local sponsor of the legislation, state Legislator Colleen Gunnip, R-Salina, said eliminating the exemption would establish consistency in how solar and wind farms are valued for tax purposes.

“This will allow different municipalities to apply a fair and equitable process,” she added.

Onondaga County will become the 22nd county to opt out of a 1990 state law aimed at spurring renewable energy. New York state is required to get 70% of its electricity from renewable sources by 2030.

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The author of this article, Tim Knauss, can be contacted at: e-mail | Twitter | 315-470-3023.