Schoharie County taxpayers are appealing a decision in Albany County Supreme Court that refused to “pause” changes to the state’s formula for taxing large-scale solar and wind while an Article 78 lawsuit challenging its constitutionality goes ahead.
In an April 30 decision, Judge Justin Corcoran denied the request for the temporary restraining order or TRO.
The challenge, filed Monday by taxpayers—including all 16 Schoharie County supervisors--asks a five-member Appellate Court to reconsider Judge Corcoran’s ruling.
The challenge could be heard as soon as Monday.
The timing of the original hearing for the TRO was critical: May 1 was the deadline for assessors to finalize their assessments.
But Don Airey, supervisors Energy Committee chair, said Tuesday that those assessments could be reversed if the Appellate Court acts by May 15.
“It’s an option we didn’t know we had,” he said. “It was good work by our attorney, Dylan Harris, that found it.”
Because of changes to the state tax law, assessments to large-scale solar and wind are being reduced by nearly two-thirds.
That leaves local taxpayers picking up the difference.
In the Town of Sharon, the Article 78 lawsuit points out, the 50-MW NextEra solar project was independently appraised at $99 million.
But under the state’s new tax model, its assessed value is only $22,585, 953—a loss of $76,414,047 to the tax base.
The Article 78 suit charges that the state’s model curtails the authority of assessors to choose their own model for valuing properties and argues that the tax law unfairly assesses large projects at a lower rate, calling it “arbitrary and capricious as it serves no government interest.”
Mr. Airey said the TRO is looking to maintain status quo, keeping last year’s assessments and tax rates in place, while the Article 78 challenge goes forward.
There’s no court date or judge for that yet, he said.