Local Property Taxes on Energy Infrastructure
To provide greater transparency, property taxes will now appear as a separate line item on your bill.
Why Property Taxes Matter
Property taxes are part of the cost of delivering safe and reliable energy and are associated with infrastructure such as underground pipes, wires, and equipment that serve your home or business. We collect these costs from customers and pass them directly through to local governments without earning a profit.
These taxes have always been part of your energy bill but were historically included within the delivery charge. To provide greater transparency, property taxes will now appear as a separate line item on your bill. These appear in a new “Tax Charges” section alongside existing itemized taxes (sales and gross receipts taxes, and other tax surcharges). All other taxes remain part of the delivery charge and are not listed separately.
How Property Taxes Are Calculated
The amount you see listed as a separate line item on your bill as Municipal Property Taxes represents the amount built into your delivery rates for these property taxes. The amount of your bill that is attributable to this line item is based on your service classification's allocated share of these costs.
For every electric and gas service classification, the company has calculated what percentage of the delivery revenues for that class are attributable to municipal property taxes based on historical data. Your service classification percentage is then multiplied by relevant delivery rate components that recover property taxes paid by the company to arrive at the quoted Municipal Property Tax Line Item.
The percentages by service classification will change any time there is an approved change to the company's base delivery rates.
Where Property Taxes Go
Property taxes are levied and paid by the company to a combination of local government entities that include counties, municipalities (i.e., cities, towns, and villages), school districts, and special districts where the underground pipes, wires, and equipment that serve your home or business are located. Because local authorities operate independently, a single property is typically subject to taxes from various local government entities.
Note: Con Edison is subject to property taxes from approximately 700 local government entities and special districts.
Our Property Tax Payment Summary
New York State Real Property Tax Law establishes the statewide framework for real property taxation, but much of the levy, collection, and administration of property taxes is carried out by local governments. New York City is also subject to special statutory provisions that govern the assessment and administration of property taxes within the City.
Property taxes are levied on the assessed value of the real estate and infrastructure assets in a jurisdiction. The property taxes summarized in the following document are presented at the municipal level and include all property taxes paid to municipalities, school districts, and special districts located within each municipality’s boundaries. In jurisdictions with multiple overlapping districts, taxes paid to school districts and special districts are incorporated into the municipal totals.