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Canton town board hears public comments on amendment to solar law

Posted 1/19/21

BY ADAM ATKINSON North Country This Week CANTON — The town board heard comments from the public at a recent hearing on an amendment to the municipality’s local law regulating solar energy …

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Canton town board hears public comments on amendment to solar law

Posted

BY ADAM ATKINSON
North Country This Week

CANTON — The town board heard comments from the public at a recent hearing on an amendment to the municipality’s local law regulating solar energy facilities. The change would allow taxes or payments in lieu of taxes to be charged on such installations.

The hearing was held Thursday, Jan. 14 on the Zoom platform, and public comments mainly focused on how such an amendment might affect residential solar or alternative energy systems. The town board held off on any action on the amendment until some of those concerns could be researched further.

The amendment to the law will allow the town to not permit exemptions to the state’s Real Property Tax Law for any energy system built within the town jurisdiction. Such exemptions are normally allowed by the state, but towns can opt out. The amendment also will allow the town to request a payment in lieu of taxes agreement, commonly called a PILOT agreement, in connection with any such installation or improvements.

“There’s a provision of the Real Property Tax Law in the State of New York that says solar facilities and energy facilities in particular, or in general, are not subject to taxation for the value of the installed facilities for 15 years after the installation,” explained town attorney Eric Gustafson. “And there is a provision of that … law that allows municipalities to opt out so that the town can collect real property taxes on solar, wind, whatever type of energy facilities are being installed in the municipality.”

Gustafson said that to do that towns have to pass a local law allowing them to do so, which is the purpose of the amendment.

Scott Shipley, a solar installer primarily dealing in residential projects, voiced concerns about how the taxation option might be used regarding residential energy projects.

“The tax provision has been increased for a number of years to encourage installation of solar, mostly by residents and small businesses. So if you eliminate this, you are going to eliminate one of the incentives that encourages people to install solar,” Shipley said.

“I think at this juncture, environmentally, economically, to do anything that discourages the installation of solar is probably not in the best interests of the future,” said Shipley.

“Scott brought up a good point,” said local resident Connie Ellen. “Does the law identify large solar installers, commercial installers, or are we talking about individual homeowners who might put something on their barn, or their farm or their shed?”

Gustafson said there is a certain interpretation of the law that would discourage homeowners from installing solar. When the town opts out of the state exemption, the opt out does include residential systems under the state law.

“It (the state law) doesn’t allow us to make the fine distinction we would like to be able to do with regard to residential solar for on-premises use versus the commercial, the out of the area commercial entities that are going to come in and build large scale solar facilities in the town,” Gustafson said.

Gustafson said while the concerns regarding residential systems were valid, the town is looking for a balance which will allow the town to tax the larger commercial systems.

Town Councilman Bob Washo said he still had some questions how the law amendment might affect residential assessments as well.

“Speaking for myself, I’m not remotely interested in disincentivizing residential solar, so if that means we just have to tighten things up to get our fair share from the larger projects, then that’s what we need to do,” said Town Councilman Tim Danehy.