N.Y. Comp. Codes R. & Regs. tit. 16 § 463.8

Current through Register Vol. 46, No. 45, November 2, 2024

Section 463.8 - Land and land rights

(a) Land and land rights means land owned in fee by the utility, and rights, interests and privileges held by the utility in land owned by others, such as leaseholds, easements, rights-of-way, and other like interests in land.

(b) The accounts for land and land rights shall include the first cost, including the amounts of mortgages or other liens assumed, but not rents payable periodically with respect to such rights.

(c) When special assessments for public improvements provide for deferred payments, the full amount of the assessments shall be charged to the appropriate land account and the unpaid balance shall be carried in an appropriate liability account. Interest on unpaid balances shall be charged to the appropriate interest account. If any part of the cost of public improvements is included in the general tax levy, the amount thereof shall be charged to the appropriate tax account.

(d) The net profit from the sale of timber, cord wood, or other property acquired with rights- of-way or other lands shall be credited to the appropriate land and land rights account. When land is held for a considerable period of time and timber on the land at the time of purchase increases in value, the net profit (after giving effect to the cost of the timber) from the sales of timber or its products shall be credited to account 526, miscellaneous nonoperating revenues.

(e) Separate entries shall be made for the acquisition, transfer, or retirement of each parcel of land, and each land right, having a life of more than one year. A record shall be maintained showing the nature of ownership, full legal description, area, map reference, purpose for which used, city, county, and tax district in which situated, from whom purchased or to whom sold, payment given or received, other costs, contract date and number, date of recording of deed, book and page of record. Entries transferring or retiring land or land rights shall refer to the original entry recording its acquisition. A parcel of land acquired and carried on the books as a unit, is not required to be subdivided, with transfers to other land accounts, merely because of the erection thereon of an incidental structure to be used in steam operations but for a purpose differing from that for which the land is chiefly employed; for example, a small general storehouse on production plant land.

(f) Entries to the steam plant accounts for limited-term interests in land shall make specific reference to the lease, contract or arrangement under which each interest is held or used, together with a concise statement of the terms of the lease, contract or arrangement.

(g) The cost of buildings and other improvements (except bulkheads, buried, not requiring maintenance or replacement; retaining walls primarily for preserving the level of land; assessments for public improvements, and sidewalks and curbs constructed by the utility on public streets) shall not be included in the land accounts. If at the time of acquisition of an interest in land such interest extends to buildings or other improvements (other than public improvements), which are then devoted to steam operations, the land and improvements shall be separately appraised and the cost allocated to land and buildings or improvements on the basis of the appraisals. If the improvements are removed or wrecked without being used in steam operations, the cost thereof and the cost of removing or wrecking shall be charged and the salvage credited to the account in which the cost of the land is recorded.

(h) The cost of land acquired in excess of that used in steam operations shall be included in account 108, Other Utility Plant, account 110, Other Physical Property, or account 104, Steam Plant Held for Future Use, as appropriate.

(i) When the purchase of land for steam operations requires the purchase of land not to be used for such purposes, the charge to the specific land account shall be based upon the cost of the land purchased, less the fair market value of that portion of the land which is not to be used for steam operations. The fair market value of such land not to be used for steam operations shall be included in account 110, Other Physical Property.

(j) When the purchase of land for steam operations requires the purchase of land not to be used for such purpose, but held for such purpose, the charge to the specific land account shall be based upon the cost of only that portion which is used for steam operations, and the cost of the remaining land shall be included in account 104, Steam Plant Held for Future Use.

(k) The items of cost to be included in the accounts for land and land rights are as follows (see steam plant instruction § 463.3) :

(1) Bulkheads, buried, not requiring maintenance or replacement.

(2) Cost of acquisition including mortgages and other liens assumed (but not subsequent interest thereon after the property is placed in service).

(3) Clearing (first cost) the land of brush, trees and debris; and also tree trimming (first cost) when not chargeable to other steam plant accounts.

(4) Condemnation proceedings, including court and counsel costs.

(5) Consents and abutting damages, payment for.

(6) Conveyancers' and notaries' fees.

(7) Fees, commissions, and salaries to brokers, agents and others in connection with the acquisition of the land or land rights.

(8) Grading the land, except when directly occasioned by the building of a structure.

(9) Leases, cost of voiding upon purchase to secure possession of land.

(10) Removing, relocating, or reconstructing property of others, such as buildings, highways, railroads, bridges, cemeteries, churches, telephone and power lines, etc., in order to acquire quiet possession.

(11) Retaining walls when they increase the value of the land or are primarily to preserve the level of the land.

(12) Special assessments levied by public authorities for public improvements on the basis of benefits for new roads, new bridges, new sewers, new curbing, new pavements, and other public improvements, but not taxes levied to provide for the maintenance of such improvements.

(13) Surveys in connection with the acquisition.

(14) Taxes assumed, accrued to date of transfer of title.

(15) Title, examining, clearing, insuring, and registering in connection with the acquisition, and defending against claims relating to the period prior to the acquisition.

N.Y. Comp. Codes R. & Regs. Tit. 16 § 463.8