BILL NUMBER: SB 534	AMENDED
	BILL TEXT

	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  .
   (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) 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.