On May 30, 2025, the Third Department confirmed an automatic stay of the Albany Court Supreme Court’s decision in Airey v State, making it clear assessors are required to utilize the state-wide uniform assessment model for solar and wind energy facilities set forth by Real Property Tax Law 575-b.
The statute, enacted in 2021, enables the New York State Department of Tax and Finance (the “Department”) to create a discounted cashflow model (the “Model”) to assess solar and wind energy facilities, and requires assessors across New York state to utilize the Model. A group of town supervisors from Schoharie and Montgomery County challenged the constitutionality of the statute, and on March 3, 2025, the Albany County Supreme Court agreed, holding the Model is an unconstitutional delegation of the legislative power to tax to a state administrative agency. The state promptly appealed the decision up to the Third Department, which will weigh in on the constitutionality of the statute.
In the interim, the stay preserves the status quo until a decision is rendered by the Third Department. In support of the automatic stay, the state noted the purpose of the statute, ensuring uniformity, certainty and predictability of the tax burden of solar and wind project facilities across the state. Without such certainty, renewable projects were at risk of being delayed or canceled, jeopardizing the state’s renewable energy goals under the Climate Leadership and Community Protection Act.
For now, the stay confirms that assessors across the state are required to utilize the Department’s 2025 Model to value solar and wind facilities within their jurisdiction. The confirmation comes in between the publication of tentative assessment rolls on May 1 and final assessment rolls on July 1. Prior to the publication of tentative assessment rolls, the Department referred assessors to their municipal attorneys for guidance on the applicability of the Model, creating a patchwork of assessment methods across the state. With just under a month until the publication of final assessment rolls, assessors must ensure the Model is utilized for all solar and wind facilities within their jurisdiction for the upcoming tax year. Likewise, solar and wind energy project owners and developers should confirm their facilities are assessed pursuant to the Model.
