Senator Frank Padavan (R-C, Bellerose) announced that legislation he introduced to exempt the sale of electricity, refrigeration and steam produced by a co-generation facility owned or operated by cooperative housing corporations when such energy or energy services are distributed to tenants of such cooperative corporations from sales and compensating use taxes was signed into law.

"For many years now, there have only been two co-ops in New York State that have been denied a sales tax exemption on the sale of self-produced energy," Padavan said. "North Shore Towers [in Floral Park] is one of them. Since everyone else producing their own energy can take advantage of state and local tax exemptions, amending the law to allow North Shore Towers the ability to take advantage of the same program seemed only fitting - and fair.

"Some cooperative corporations use co-generation facilities to generate their own electricity, steam or refrigeration, distributing this electricity, steam and refrigeration to the cooperative corporations' tenants," Padavan explained. "These cooperative corporations sometimes also meter the individual energy use of each tenant, and bill tenants for such use, holding the tenants personally responsible for the cost of their own energy use.

"The fact that two co-ops weren't able to take advantage of these tax exemptions was unacceptable," Padavan concluded. "Besides, state and local sales tax exemptions for energy production and dispersal has a correlative effect of encouraging energy conservation. It also reduces the overall energy output of the co-generation facility. It's both business and environment friendly and I'm pleased that the governor has signed it into law."

Estimates indicate that there will be a state and local tax savings for both co-ops of $150,000 per year.