NY A02559

Amends the definition of "special franchise" in real property tax law to exclude water system property owned by water-works corporations, effective January 1, 2026.

Implements a five-year phase-in of tax reductions for water system special franchise property: 100% of 2020 valuation in 2021, declining by 20 percentage points annually to 20% by 2025.

Requires any tax relief realized by water-works corporations to be used to reduce current water rates and offset future water rate increases.

Removes water from the list of substances covered under special franchise taxation while maintaining taxation of steam, light, power, electricity, gas, and other substances.