Bill Text: AZ HB2493 | 2019 | Fifty-fourth Legislature 1st Regular | Chaptered
Bill Title: Solar energy devices; appraisal methods
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2019-06-07 - Chapter 291 [HB2493 Detail]
Download: Arizona-2019-HB2493-Chaptered.html
|
Senate Engrossed House Bill |
|
State of Arizona House of Representatives Fifty-fourth Legislature First Regular Session 2019
|
|
CHAPTER 291
|
|
HOUSE BILL 2493 |
|
|
AN ACT
amending section 42‑11054, Arizona Revised Statutes; amending title 42, chapter 13, article 2, Arizona Revised Statutes, by adding section 42‑13056; relating to valuation of property.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-11054, Arizona Revised Statutes, is amended to read:
42-11054. Standard appraisal methods and techniques
A. Subject to subsection B of this section, the department shall:
1. Prescribe guidelines for applying standard appraisal methods and techniques that shall be used by the department and county assessors in determining the valuation of property.
2. Prepare and maintain manuals and other necessary guidelines, consistent with this section, reflecting the standard methods and techniques to perpetuate a current inventory of taxable property and the valuation of that property.
B. Before they are adopted, the department shall submit each substantive proposed guideline, table and manual that is developed, amended or otherwise modified from and after December 31, 2006 to the joint legislative oversight committee on property tax assessment and appeals. The department shall not finally adopt, amend or otherwise modify a substantive guideline, table or manual for at least thirty days after submitting the measure to the committee. The committee may hold one or more informational hearings on the proposed measure within thirty days after submission. In adopting, amending or modifying the measure the department shall consider the committee's comments. If the committee fails to hold a hearing within thirty days after submission, the department may adopt, amend or modify the measure without further consideration.
C. In applying prescribed standard appraisal methods and techniques:
1. Current usage shall be included in the formula for reaching a determination of full cash value.
2. Solar energy devices, as defined in section 44-1761, grid‑tied photovoltaic systems and any other device or system designed for the production of to produce solar energy primarily for on-site consumption are considered to have no value and to add no value to the property on which such a device or system is installed.
3. If characterized as personal property, subject to any applicable constitutional exemption from taxation, solar energy devices, as defined in section 44-1761, grid‑tied photovoltaic systems and any other device or system designed to produce solar energy primarily for on‑site consumption shall be valued as provided in section 42‑13056.
3. 4. Energy efficient building components, renewable energy equipment and combined heat and power systems are considered to add no value to the property, if the property owner provides the county assessor with documentation of all elements that qualify pursuant to this paragraph, including documents showing actual acquisition and installation costs. The documentation must be submitted to the county assessor no not later than six months before the notice of full cash value is issued for the initial evaluation year pursuant to section 42‑15101 or, if the component is added after September 30 of the preceding year, no not later than March 31 of the initial valuation year. For the purposes of this paragraph:
(a) "Combined heat and power system" means a system that generates electricity or mechanical power and useful thermal energy in a single, integrated system such that the useful power output of the facility plus one‑half the useful thermal output during any twelve-month period is no not less than 42.5 per cent percent of the total energy input of fuel to the facility.
(b) "Energy efficient building components" means high performance sustainable building components installed so that the buildings or building components meet or exceed the energy efficiencies prescribed by the United States environmental protection agency energy star program or by a leadership in energy and environmental design green building rating standard developed by the United States green building council, or an equivalent green building standard, or that are at least fifteen per cent percent more energy efficient than the international energy conservation code in effect at the time of building permit issuance.
(c) "Renewable energy equipment" means equipment that is used to produce energy primarily for on-site consumption from renewable resources, including wind, forest thinnings, agricultural waste, biogas, biomass, geothermal, low-impact hydropower and solar energy not included under paragraph 2 of this subsection.
D. If the methods and techniques prescribe using market data as an indication of market value, the price paid for future anticipated property value increments shall be excluded.
E. For the purposes of determining full cash value the department and county assessors shall use and apply the ratio standard guidelines issued by the department for tax year 1993 in the same manner as they were applied in tax year 1993. This subsection does not apply to property that is valued according to prescribed statutory methods or to property for which values are determined in the year after an appeal pursuant to section 42‑16002.
Sec. 2. Title 42, chapter 13, article 2, Arizona Revised Statutes, is amended by adding section 42-13056, to read:
42-13056. Taxable value of solar energy devices classified as personal property; depreciated value; definition
A. When characterized as personal property, subject to any applicable constitutional exemption from taxation, the property specified in section 42‑11054, subsection C, paragraph 3 shall be valued annually, at its taxable original cost, minus any appropriate depreciation as prescribed by tables adopted by the department. Each taxpayer that owns the property specified in section 42-11054, subsection C, paragraph 3 shall annually report to the assessor in each county where the property is located the taxable original cost of the property.
B. As the annual scheduled depreciated value for this section, the county assessor shall use the depreciation table prescribed by the department for personal property with a ten‑year life, based on the date each device or system was placed into service.
C. Notwithstanding any other law, the county assessor shall adjust the depreciation schedules prescribed by the department as follows:
1. For the first tax year of assessment, the assessor shall use three percent of the scheduled depreciated value.
2. For the second tax year of assessment, the assessor shall use three percent of the scheduled depreciated value.
3. For the third tax year of assessment, the assessor shall use three percent of the scheduled depreciated value.
4. For the fourth tax year of assessment, the assessor shall use four percent of the scheduled depreciated value.
5. For the fifth tax year of assessment, the assessor shall use five percent of the scheduled depreciated value.
6. For the sixth tax year of assessment, the assessor shall use six percent of the scheduled depreciated value.
7. For the seventh tax year of assessment, the assessor shall use eight percent of the scheduled depreciated value.
8. For the eighth tax year of assessment, the assessor shall use eleven percent of the scheduled depreciated value.
9. For the ninth tax year of assessment, the assessor shall use twenty-four percent of the scheduled depreciated value.
10. For the tenth tax year of assessment, the assessor shall use one hundred percent of the scheduled depreciated value.
D. For the purposes of this section, "taxable original cost" means the original cost minus the value of any investment tax credits, production tax credits or cash grants in lieu of investment tax credits applicable to the taxable renewable energy equipment.
Sec. 3. Prior valuation of solar energy devices classified as personal property; refund
If, and to the extent that, the property specified in section 42‑11054, subsection C, paragraph 3, Arizona Revised Statutes, as added by this act, is valued, assessed and taxed in any manner for property tax purposes for tax years preceding the effective date of this act, those valuations, assessments and resulting taxes shall be recalculated pursuant to section 42‑13056, Arizona Revised Statutes, as added by this act, and any excess tax refunded to the taxpayer.
APPROVED BY THE GOVERNOR JUNE 7, 2019.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 7, 2019.
