Bill Text: CA SB534 | 2009-2010 | Regular Session | Amended
Bill Title: Property tax: new construction exclusion: small wind
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB534 Detail]
Download: California-2009-SB534-Amended.html
BILL NUMBER: SB 534 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 19, 2009
AMENDED IN SENATE MAY 6, 2009
INTRODUCED BY Senator Strickland
FEBRUARY 27, 2009
An act to add Section 74.8 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 534, as amended, Strickland. Property tax: new construction
exclusion: small wind turbines and geothermal heat pump systems.
(1) 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.
This bill would provide that the classification as "newly
constructed" for purposes of these constitutional provisions does not
include the construction or addition, on or after January 1, 2010,
of a small wind turbine, as defined, or geothermal heat pump system,
as defined. This bill would specify that the "construction or
addition of a small wind turbine or a geothermal heat pump system"
includes the construction of a small wind turbine or
geothermal heat pump system in a new building, not intended to be
occupied or used by the owner-builder, in which the owner-builder
incorporated a small wind turbine or geothermal heat pump system in
initial construction. This bill would provide this exclusion to the
initial purchaser of the new building, but only if the owner-builder
did not receive the exclusion for the same system and the initial
purchaser purchased the new building prior to that building becoming
subject to reassessment to the owner-builder, as provided. This bill
would require the county assessor to reduce the base year value of
these buildings by the value of the small wind turbine or geothermal
heat pump system less the total amount of any rebates for the small
wind turbine or geothermal heat pump system received by either the
owner-builder or the initial purchaser of the new building, as
specified.
(2) By imposing new duties on county assessors, 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.
(3) 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.
(4) This bill would take effect immediately as a tax levy, but
would become operative only if Senate Constitutional Amendment 13 of
the 2009-10 Regular Session is approved by the voters.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 74.8 is added to the Revenue and Taxation Code,
to read:
74.8. (a) Pursuant to the authority granted to the Legislature
pursuant to paragraph (6) 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, on or after January 1, 2010, of a small wind turbine or
geothermal heat pump system.
(b) Notwithstanding any other law, for purposes of this section,
"the construction or addition of a small wind turbine or geothermal
heat pump system" includes the construction of a small wind turbine
or geothermal heat pump 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 small wind turbine or geothermal heat pump
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:
(1) 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 small wind turbine or
geothermal heat pump system included in the purchase price of the new
building. The claim shall also identify the amount of any rebate for
the small wind turbine or geothermal heat pump 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.
(2) The assessor shall evaluate the claim and determine the
portion of the purchase price that is attributable to the small wind
turbine or geothermal heat pump 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:
(A) That portion of the value of the new building attributable to
the small wind turbine or geothermal heat pump system.
(B) The total amount of all rebates, if any, described in
paragraph (1) that were provided to either the owner-builder or the
initial purchaser.
(3) 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.
(b)
(c) For purposes of this section:
(1) "Geothermal heat pump system" means a system that uses the
constant temperature of the earth as the exchange medium for energy
instead of the outside air temperature.
(2) "Small wind turbine" means a turbine that spins on top of a
tower to turn the wind into usable electricity rated at a maximum of
15 kilowatts.
SEC. 2. 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. 3. 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. 4. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
However, the provisions of this act shall become operative only if
Senate Constitutional Amendment 13 of the 2009-10 Regular Session is
approved by the voters and, in that event, shall become operative on
January 1, 2010.
