Bill Text: CA AB1475 | 2013-2014 | Regular Session | Amended
Bill Title: Property taxes: new construction exclusion: active solar energy system.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Engrossed - Dead) 2014-06-15 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R. [AB1475 Detail]
Download: California-2013-AB1475-Amended.html
BILL NUMBER: AB 1475 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 15, 2014
INTRODUCED BY Committee on Budget (Skinner (Chair), Bloom, Campos,
Chesbro, Dababneh, Daly, Dickinson, Gordon, Jones-Sawyer, Mullin,
Muratsuchi, Nazarian, Rodriguez, Stone, Ting, and Weber)
JANUARY 9, 2014
An act relating to the Budget Act of 2014
to amend Section 73 of the Revenue and Taxation Code, relating to
taxation, and making an appropriation therefor, to take effect
immediately, bill related to the budget .
LEGISLATIVE COUNSEL'S DIGEST
AB 1475, as amended, Committee on Budget. Budget Act of
2014. Property taxes: new construction exclusion:
active solar energy system.
The California Constitution generally limits ad valorem taxes on
real property to 1% of the full cash value of that property. For
purposes of this limitation, "full cash value" is defined as the
assessor's valuation of real property as shown on the 1975-76 tax
bill under "full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or a change in
ownership has occurred. Pursuant to an authorization in the
California Constitution, existing law excludes, through the 2015-16
fiscal year, from classification as "newly constructed" the
construction or addition of an active solar energy system, as
defined. This exclusion will be repealed on January 1, 2017.
This bill would extend this exclusion through the 2023-24 fiscal
year, and would also extend the repeal date to January 1, 2025. This
bill would appropriate $10,000 from the General Fund to the State
Board of Equalization for administrative costs related to the bill.
By imposing new duties upon local county officials with respect to
the administration of this exclusion, this bill would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to the bill.
This bill would declare that it is to take effect immediately as a
bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2014.
Vote: majority. Appropriation: no yes
. Fiscal committee: no yes .
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 73 of the Revenue
and Taxation Code is amended to read:
73. (a) Pursuant to the authority granted to the Legislature
pursuant to paragraph (1) of subdivision (c) of Section 2 of Article
XIII A of the California Constitution, the term "newly constructed,"
as used in subdivision (a) of Section 2 of Article XIII A of the
California Constitution, does not include the construction or
addition of any active solar energy system, as defined in subdivision
(b).
(b) (1) "Active solar energy system" means a system that, upon
completion of the construction of a system as part of a new property
or the addition of a system to an existing property, uses solar
devices, which are thermally isolated from living space or any other
area where the energy is used, to provide for the collection,
storage, or distribution of solar energy.
(2) "Active solar energy system" does not include solar swimming
pool heaters or hot tub heaters.
(3) Active solar energy systems may be used for any of the
following:
(A) Domestic, recreational, therapeutic, or service water heating.
(B) Space conditioning.
(C) Production of electricity.
(D) Process heat.
(E) Solar mechanical energy.
(c) For purposes of this section, "occupy or use" has the same
meaning as defined in Section 75.12.
(d) (1) (A) The Legislature finds and declares that the definition
of spare parts in this paragraph is declarative of the intent of the
Legislature, in prior statutory enactments of this section that
excluded active solar energy systems from the term "newly
constructed," as used in the California Constitution, thereby
creating a tax appraisal exclusion.
(B) An active solar energy system that uses solar energy in the
production of electricity includes storage devices, power
conditioning equipment, transfer equipment, and parts related to the
functioning of those items. In general, the use of solar energy in
the production of electricity involves the transformation of sunlight
into electricity through the use of devices such as solar cells or
other solar collecting equipment. However, an active solar energy
system used in the production of electricity includes only equipment
used up to, but not including, the stage of conveyance or use of the
electricity. For the purpose of this paragraph, the term "parts"
includes spare parts that are owned by the owner of, or the
maintenance contractor for, an active solar energy system that uses
solar energy in the production of electricity and which spare parts
were specifically purchased, designed, or fabricated by or for that
owner or maintenance contractor for installation in an active solar
energy system that uses solar energy in the production of
electricity, thereby including those parts in the tax appraisal
exclusion created by this section.
(2) An active solar energy system that uses solar energy in the
production of electricity also includes pipes and ducts that are used
exclusively to carry energy derived from solar energy. Pipes and
ducts that are used to carry both energy derived from solar energy
and from energy derived from other sources are active solar energy
system property only to the extent of 75 percent of their full cash
value.
(3) An active solar energy system that uses solar energy in the
production of electricity does not include auxiliary equipment, such
as furnaces and hot water heaters, that use a source of power other
than solar energy to provide usable energy. An active solar energy
system that uses solar energy in the production of electricity does
include equipment, such as ducts and hot water tanks, that is
utilized by both auxiliary equipment and solar energy equipment, that
is, dual use equipment. That equipment is active solar energy system
property only to the extent of 75 percent of its full cash value.
(e) (1) Notwithstanding any other law, for purposes of this
section, "the construction or addition of any active solar energy
system" includes the construction of an active solar energy system
incorporated by the owner-builder in the initial construction of a
new building that the owner-builder does not intend to occupy or use.
The exclusion from "newly constructed" provided by this subdivision
applies to the initial purchaser who purchased the new building from
the owner-builder, but only if the owner-builder did not receive an
exclusion under this section for the same active solar energy system
and only if the initial purchaser purchased the new building prior to
that building becoming subject to reassessment to the owner-builder,
as described in subdivision (d) of Section 75.12. The assessor shall
administer this subdivision in the following manner:
(A) The initial purchaser of the building shall file a claim with
the assessor and provide to the assessor any documents necessary to
identify the value attributable to the active solar energy system
included in the purchase price of the new building. The claim shall
also identify the amount of any rebate for the active solar energy
system provided to either the owner-builder or the initial purchaser
by the Public Utilities Commission, the State Energy Resources
Conservation and Development Commission, an electrical corporation, a
local publicly owned electric utility, or any other agency of the
State of California.
(B) The assessor shall evaluate the claim and determine the
portion of the purchase price that is attributable to the active
solar energy system. The assessor shall then reduce the new base year
value established as a result of the change in ownership of the new
building by an amount equal to the difference between the following
two amounts:
(i) That portion of the value of the new building attributable to
the active solar energy system.
(ii) The total amount of all rebates, if any, described in
subparagraph (A) that were provided to either the owner-builder or
the initial purchaser.
(C) The extension of the new construction exclusion to the initial
purchaser of a newly constructed new building shall remain in effect
only until there is a subsequent change in ownership of the new
building.
(2) The State Board of Equalization, in consultation with the
California Assessors' Association, shall prescribe the manner,
documentation, and form for claiming the new construction exclusion
required by this subdivision.
(f) Notwithstanding any other law, the exclusion from new
construction provided by this section shall remain in effect only
until there is a subsequent change in ownership.
(g) This section applies to property tax lien dates for the
1999-2000 fiscal year to the 2015-16 2023-24
fiscal year, inclusive.
(h) The amendments made to this section by the act that added this
subdivision apply beginning with the lien date for the 2008-09
fiscal year.
(i) (1) This section shall remain in effect only until January 1,
2017, 2025, and as of that date is
repealed.
(2) Active energy solar systems that qualify for an exclusion
under this section prior to January 1, 2017,
2025, shall continue to be excluded on and after January 1,
2017, 2025, until there is a subsequent
change in ownership.
SEC. 2. The sum of ten thousand dollars ($10,000)
is hereby appropriated from the General Fund to the State Board of
Equalization for administrative costs related to this act.
SEC. 3. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SEC. 4. Notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made by this act and
the state shall not reimburse any local agency for any property tax
revenues lost by it pursuant to this act.
SEC. 5. This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2014.
