Volume 5 - Opinions of Counsel SBEA No. 110
Industrial waste treatment facilities exemption (scope) (land used for installation) - Real Property Tax Law, § 477:
The exemption granted industrial waste treatment facilities pursuant to section 477 of the Real Property Tax Law applies only to the newly constructed or reconstructed facilities and not per se to the land upon which such facilities are situated. The amount of the exemption is not necessarily measured by the value of the new facility but by the amount by which the value of the property has been increased because of the new construction.
Our opinion has been requested as to whether land used for the installation of an industrial waste treatment facility may be considered for exempt status under the provisions of section 477 of the Real Property Tax Law.
Section 477 provides, in pertinent part, as follows:
1. Industrial waste treatment facilities which were constructed or reconstructed in order to comply with the provisions of the environmental conservation law and codes, rules, regulations, permits or orders issued pursuant thereto. . .shall be exempt from taxation to the extent of any increase in value thereof by reason of such construction or reconstruction.
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7. The term “industrial waste treatment facilities” shall mean facilities for the treatment, neutralization or stabilization of industrial waste (as the term “industrial waste” is defined in section 17-0105 of the environmental conservation law) from a point immediately preceding the point of such treatment, neutralization or stabilization to the point of disposal, including the necessary pumping and transmitting facilities, but excluding such facilities installed for the primary purpose of salvaging materials which are usable in the manufacturing process or are marketable.
The exemption applies only to newly constructed or reconstructed industrial waste treatment facilities as defined in the statute and not per se to the land upon which the facilities are situated. Such facilities are exempt from taxation only to the extent of any increase in value of the entire property on which the facilities are located by reason of the construction or reconstruction. The amount of the exemption is not necessarily measured by the value of the new facility but by the amount by which the value of the property has been increased because of the new construction. In other words, the assessor should value the property without the new facility and then value the property with the newly constructed facility; the amount of exemption being the excess or difference in value.
December 27, 1976
Revised July 13, 1978