Bill Text: VA SB686 | 2022 | Regular Session | Chaptered
Bill Title: Tax, local; solar facility exemption.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2022-04-11 - Governor: Acts of Assembly Chapter text (CHAP0496) [SB686 Detail]
Download: Virginia-2022-SB686-Chaptered.html
Be it enacted by the General Assembly of Virginia:
1. That §58.1-3661 of the Code of Virginia is amended and reenacted as follows:
§58.1-3661. Certified solar energy equipment, facilities, or devices and certified recycling equipment, facilities, or devices.
A. Any solar facility installed pursuant to subsections A or B of §15.2-2288.7 with a nameplate rated electrical generating capacity measured in direct current kilowatts of not more than 25 kilowatts is hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other classifications of real or personal property. Such facilities shall be wholly exempt from state and local taxation pursuant to Article X, Section 6 (d) of the Constitution of Virginia.
B. Certified solar energy equipment, facilities, or
devices and certified recycling equipment, facilities, or devices, as defined
herein, are hereby declared to be a separate class of property and shall
constitute a classification for local taxation separate from other
classifications of real or personal property. The governing body of any county,
city or town may, by ordinance, exempt or partially exempt such property from
local taxation in the manner provided by subsection D E.
B. C. As used in this section:
"Certified recycling equipment, facilities, or devices" means machinery and equipment which is certified by the Department of Environmental Quality as integral to the recycling process and for use primarily for the purpose of abating or preventing pollution of the atmosphere or waters of the Commonwealth, and used in manufacturing facilities or plant units which manufacture, process, compound, or produce for sale recyclable items of tangible personal property at fixed locations in the Commonwealth.
"Certified solar energy equipment, facilities, or devices" means any property, including real or personal property, equipment, facilities, or devices, excluding any portion of such property that is exempt under §58.1-3660, certified by the local certifying authority to be designed and used primarily for the purpose of collecting, generating, transferring, or storing thermal or electric energy.
"Local certifying authority" means the local building departments or the Department of Environmental Quality. The State Board of Housing and Community Development shall promulgate regulations setting forth criteria for certifiable solar energy equipment. The Department of Environmental Quality shall promulgate regulations establishing criteria for recycling equipment, facilities, or devices.
C. D. Any person residing in a county, city or
town which has adopted an ordinance pursuant to subsection A B
may proceed to have solar energy equipment, facilities, or devices certified as
exempt, wholly or partially, from taxation by applying to the local building
department. If, after examination of such equipment, facility, or device, the
local building department determines that the unit primarily performs any of
the functions set forth in subsection B C and conforms to the
requirements set by regulations of the Board of Housing and Community
Development, such department shall approve and certify such application. The
local department shall forthwith transmit to the local assessing officer those
applications properly approved and certified by the local building department
as meeting all requirements qualifying such equipment, facility, or device for
exemption from taxation. Any person aggrieved by a decision of the local
building department may appeal such decision to the local board of building
code appeals, which may affirm or reverse such decision.
D. E. Upon receipt of the certificate from the
local building department or the Department of Environmental Quality, the local
assessing officer shall, if such local ordinance is in effect, proceed to
determine the value of such qualifying solar energy equipment, facilities, or
devices or certified recycling equipment, facilities, or devices. The exemption
provided by this section shall be determined by applying the local tax rate to
the value of such equipment, facilities, or devices and subtracting such
amount, wholly or partially, either (i) from the total real property tax due on
the real property to which such equipment, facilities, or devices are attached
or (ii) if such equipment, facilities, or devices are taxable as machinery and
tools under §58.1-3507, from the total machinery and tools tax due on such
equipment, facilities, or devices, at the election of the taxpayer. This
exemption shall be effective beginning in the next succeeding tax year and
shall be permitted for a term of not less than five years; however, if the
taxpayer installs equipment, facilities, or devices and obtains certification
for such equipment, facilities, or devices within one year of installation, the
locality may provide by ordinance that the exemption shall be effective as of
the date of installation, and if the taxpayer has paid any taxes on such
equipment, facilities, or devices, the locality shall reimburse the taxpayer
for any such taxes paid. In the event the locality assesses real estate
pursuant to §58.1-3292, the exemption shall be first effective when such real
estate is first assessed, but not prior to the date of such application for
exemption.
E. F. It shall be presumed for purposes of the
administration of ordinances pursuant to this section, and for no other
purposes, that the value of such qualifying solar energy equipment, facilities,
and devices is not less than the normal cost of purchasing and installing such
equipment, facilities, and devices.
2. That the provisions of this act shall become effective on January 1, 2023.
