Real property tax: valuation: active solar energy system.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill changes how local assessors value active solar energy systems for property tax purposes. It establishes uniform rules for valuation, limiting the value to the tangible components of the system and excluding intangible assets like renewable energy credits and tax credits. Importantly, the state will not reimburse local agencies for any property tax revenue lost due to this change. The bill takes effect immediately and requires a 2/3 vote of each legislative chamber for passage.
Key provisions
- Establishes uniform rules for valuing active solar energy systems.
- Limits the valuation of solar systems to tangible property only.
- Excludes renewable energy credits and tax credits from property value calculations.
- Specifies useful life limits for solar systems (up to 25 years or the system’s lease term).
- Requires assessors to exclude external obsolescence when determining value.
- Sets rules for determining replacement cost new, including deductions for subsidies.
- Prohibits state reimbursement to local agencies for lost property tax revenue due to the changes.
- Requires a 2/3 vote of each legislative chamber for approval.
Who is affected
- Property owners with active solar energy systems
- Local assessors and tax collectors
- Local government agencies (receiving property tax revenue)
- Solar energy system installers and manufacturers
Bill text
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Sponsors
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1 on record
Primary sponsor
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