News & Insights

A mandatory real property tax exemption in New York is provided by Real Property Law § 420-a(1)(a) for property meeting a two-prong test: first, if owned by an organization formed for “religious, charitable, hospital, educational, or moral or mental improvement of men, women or children purposes,” and second, if used exclusively for carrying out such purposes. 

New York Governor Kathy Hochul signed legislation resolving the latest attack on the solar and wind real property tax assessment model.  The legislation, Senate Bill S.8012 (Assembly Bill A.8332) (the “Legislation”), is in direct response to the Airey, et al. v. State of New York, et al., Index No. 903991-24, case in Albany County Supreme Court (the “Challenge”).  The Court in Airey held the assessment model under Real Property Tax Law (“RPTL”) § 575-b (the “Model”) unconstitutional (the “Decision”).  We previously reported on the Decision in our alert on March 5, 2025.

Solar projects are governed by the Public Utility Variance (“PUV”) standard that the New York Court of Appeals announced in Matter of Consolidated Edison Co. of N.Y. v. Hoffman, 43 N.Y.2d 598 (1978). Under this test, where a proposed facility demonstrates that it is a public necessity required to render safe and adequate service, that there are compelling reasons, economic or otherwise, which make it more feasible to construct the project where proposed than an alternative, and where the intrusion or burden on the community is minimal, the required showing is correspondingly reduced.