16 CRR-NY 563.7NY-CRR
16 CRR-NY 563.7
16 CRR-NY 563.7
563.7 Land and land rights.
(a) The accounts for land and land rights shall include the cost of 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, water and water power rights, diversion rights, submersion rights, rights-of-way, and other like interests in land. Do not include in the accounts for land and land rights and rights-of-way, costs incurred with first clearing and grading the land and rights-of-way and the damage costs associated with the construction and installation of plant. Such costs shall be included in the appropriate plant accounts directly benefited.
(b) Where 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.
(c) The net profit from the sale of timber, wood, sand, gravel, other resources, or other property acquired with the right-of-way or other lands shall be credited to the appropriate plant account to which related. Where land is held for a considerable period of time and timber and other natural resources on the land at the time of purchase increases in value, the net profit, (after giving effect to the cost of the natural resources) from the sales of timber or its products or other natural resources shall be credited to the appropriate utility operating income account when such land has been recorded in account 105, Water Plant Held for Future Use, or classified as plant in service otherwise to account 421, Miscellaneous Nonoperating Income.
(d) Separate entries shall be made for the acquisition, transfer, or retirement of each parcel of land, and of each water right, land right, (except rights-of-way for distribution lines), 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, and 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 water operations but for a purpose differing from that for which the land is chiefly employed; for example, a small storehouse on source of supply land.
Note:
In the case of distribution land rights, when the expected period of occupancy does not exceed the estimated life of the initial plant installed, the cost of permits or privileges to place distribution lines or other distribution plant and the related pay and expenses of employees and other costs incident to acquiring such permits, shall be included in the account appropriate for the cost of the property constructed and not in the accounts for distribution land or land rights.
(e) Any difference between the amount received from the sale of land or land rights, less agents' commissions and other costs incident to the sale, and the book cost of such land or rights shall be included in account 117, Accumulated Gains and Losses from Disposition of Utility Land and Land Rights, when such property has been used in utility service or recorded in account 105, Water Plant Held for Future Use, otherwise, such difference shall be included in account 421.1, Gain on Disposition of Property, or 421.2, Loss on Disposition of Property, as appropriate, unless a reserve therefore has been authorized and provided. Appropriate adjustments of the accounts shall be made with respect to any structures or improvements located on land sold.
(f) The cost of buildings and other improvements (other than public improvements) 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 water 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 operations, 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.
(g) When the purchase of land for water operations requires the purchase of more land than needed 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 in utility operations. The portion of the cost measured by the fair market value of the land not to be used shall be included in account 105, Water Plant Held for Future Use, account 118.2, Other Utility Plant, or account 121, Nonutility Property, as appropriate.
(h) Provision shall be made for amortizing amounts carried in the accounts for limited-term interest in land, so as to apportion equitably the cost of each interest over the life thereof. (See account 111, Accumulated Provision for Amortization of Water Plant in Service, and account 404, Amortization of Limited-term Water Plant.)
(i) The items of cost to be included in the accounts for land and land rights are as follows:
(1) Bulkheads, buried, not requiring maintenance or replacement.
(2) Cost, first, of acquisition including mortgages and other liens assumed (but not subsequent interest thereon).
(3) Condemnation proceedings, including court and counsel costs.
(4) Consents and abutting damages, payment for.
(5) Conveyancers' and notaries' fees.
(6) Fees, commissions, and salaries to brokers, agents, and others in connection with the acquisition of the land or land rights.
(7) Leases, cost of voiding upon purchase to secure possession of land.
(8) 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.
(9) Retaining walls unless identified with structures.
(10) Special assessments levied by public authorities for public improvements on the basis of benefit 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.
(11) Surveys in connection with the acquisition, but not amounts paid for topographical surveys and maps where such costs are attributable to structures, or plant equipment erected or to be erected or installed on such land.
(12) Taxes assumed, accrued to date of transfer of title.
(13) Title, examining, clearing, insuring, and registering in connection with the acquisition and defending against claims relating to the period prior to the acquisition.
(14) Appraisals prior to closing title.
(15) Cost of dealing with distributees or legatees residing outside of the State or country, such as recording power of attorney, recording will or exemplification of will, recording satisfaction of State tax.
(16) Filing satisfaction of mortgage.
(17) Documentary stamps.
(18) Photographs of property at acquisition.
(19) Fees and expenses incurred in the acquisition of water rights, and grants.
(20) Cost of fill to extend bulkhead line over land under water, where riparian rights are held, which is not occasioned by the erection of a structure.
(21) Sidewalks and curbs constructed by the utility on public property.
(22) Labor and expenses in connection with securing rights-of-way, where performed by company employees and company agents.
16 CRR-NY 563.7
Current through February 28, 2023
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: The "Current through" date indicated immediately above is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Administrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of NYS Rules.