FOR IMMEDIATE RELEASE
October 3, 2005
MAYOR BLOOMBERG SIGNS LEGISLATION AUTHORIZING THE CITY TO EXEMPT CERTAIN COOPERATIVE APARTMENTS THAT GENERATE THEIR OWN ELECTRICITY FROM THE CITY UTILITY TAX
Remarks by Mayor Bloomberg at a Public Hearing on Local Laws
"The next bill before me is Introductory number 690-A sponsored by Council Members Weprin, Quinn, Recchia Jr., Speaker Miller, Comrie, Liu, Nelson, Gentile, Avella, Moskowitz, Gennaro, and Public Advocate, Betsy Gotbaum. This bill would effectively exempt from the City utility tax certain cooperative apartment developments that generate their own electricity.
"Under this bill, to qualify for a utility tax rate of zero percent, a cooperative corporation would have to have at least 1,500 units and furnish or sell electricity, steam, refrigeration or water produced by a co-generation facility owned or operated by the cooperative corporation to tenants or occupants of the development on a metered basis.
"This legislation rectifies an inequity amongst developments that generate their own power. Currently, there are some cooperatives that produce their own energy that do not separately meter their apartments, and, therefore, under current law are not charged a utility tax. Co-ops that do separately meter have to pay the utility tax. The distinction between co-ops that meter and those that do not seems arbitrary; after all, in both cases, the cooperative is co-generating its own energy. Intro. 690-A would be an effective mechanism to treat residential developments with co-generation facilities consistently.
"I would like to thank Martha Stark, the Commissioner of the Department of Finance and the City Council for their work on this bill."
Edward Skyler / Jonathan Werbell (212) 788-2958