BILL ANALYSIS
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THIRD READING
Bill No: AB 1099
Author: Leno (D)
Amended: 5/26/05 in Assembly
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 7-0, 6/22/05
AYES: Machado, Dutton, Alquist, Cedillo, Poochigian,
Runner, Scott
NO VOTE RECORDED: Bowen
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 79-0, 5/31/05 - See last page for vote
SUBJECT : Property tax: exclusion from new construction:
active solar
energy systems
SOURCE : PV Manufacturers Alliance
DIGEST : This bill extends the sunset date for the
exclusion of an active solar energy system from the
definition of new construction for property tax purposes.
This bill extends the exclusion to include fiscal years
2008-09, repeals the exclusion as of January 1, 2010, and
requires no appropriation to reimburse local governments
for any loss of property tax revenues.
ANALYSIS : The California Constitution generally limits
ad valorem taxes on real property to one percent of the
CONTINUED
AB 1099
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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 authority
granted to the Legislature in the California Constitution,
existing law excludes, for the 1999-2000 fiscal year to the
2004-05 fiscal year, inclusive, from the definition of
"newly constructed" the construction or addition of an
active solar energy system, as defined.
This bill specifies that this exclusion for the
construction or addition of an active solar energy system
applies from the 1999-2000 fiscal year to the 2008-09
fiscal year, inclusive.
Comments
The author states, "Solar energy use diversifies
California's energy portfolio with zero-emission renewable
energy while reducing the overall demand, and therefore
price, of natural gas and electricity." The author asserts
that incentives such as the property tax exemption
encourage consumers to use solar energy systems, which in
turn will help California's environment and reduce reliance
by the state on out-of-state energy resources.
Proponents of this bill cite the numerous benefits of solar
energy to California and state that it is important to not
penalize property owners for making an investment in solar
energy production. Further, proponents state that consumer
incentives such as the property tax exemption help
consumers make the financial decision to install solar
systems on their homes.
Pending legislation . SB 1017 (Campbell), introduced in the
current legislative session, extends the sunset date of the
property tax exemption until January 1, 2018 for active
solar energy systems installed after January 1, 1999. SB
1017 also extends an existing personal income and
corporation tax credit related to the costs of solar
systems until taxable years beginning before January 1,
2017. The bill is pending in the Senate Revenue and
AB 1099
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Taxation Committee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 7/11/05)
PV Manufacturers Alliance (source)
California Solar Energy Industries Association
Sacramento Municipal Utilities District
ASSEMBLY FLOOR :
AYES: Aghazarian, Arambula, Baca, Bass, Benoit, Berg,
Bermudez, Blakeslee, Bogh, Calderon, Canciamilla, Chan,
Chavez, Chu, Cogdill, Cohn, Coto, Daucher, De La Torre,
DeVore, Dymally, Emmerson, Evans, Frommer, Garcia,
Goldberg, Hancock, Harman, Haynes, Jerome Horton, Shirley
Horton, Houston, Huff, Jones, Karnette, Keene, Klehs,
Koretz, La Malfa, La Suer, Laird, Leno, Leslie, Levine,
Lieber, Liu, Matthews, Maze, McCarthy, Montanez,
Mountjoy, Mullin, Nakanishi, Nation, Nava, Negrete
McLeod, Niello, Oropeza, Parra, Pavley, Plescia, Richman,
Ridley-Thomas, Sharon Runner, Ruskin, Saldana, Salinas,
Spitzer, Strickland, Torrico, Tran, Umberg, Vargas,
Villines, Walters, Wolk, Wyland, Yee, Nunez
NO VOTE RECORDED: Gordon
DLW:mel 7/11/05 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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