New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter IV - STEAM UTILITIES › Subchapter F - Uniform Systems Of Accounts › Article 1 - Classes A and B › Part 463 - Instructions-steam Plant Accounts › Section 463.8 - Land and land rights

Current through Register Vol. 46, No. 28, July 10, 2024
(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.