BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 871
          Author:   Senate Budget and Fiscal Review Committee
          Amended:  6/13/14
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT

           ASSEMBLY FLOOR  :  Not available 


            SUBJECT  :    Budget Act of 2014:  Extension of Sunset for Solar  
                      Tax Exemption for New Construction

           SOURCE  :     Author


           DIGEST  :    This bill extends the sunset for a solar tax  
          exemption for new active solar energy systems on new  
          construction.

           Assembly Amendments  delete the prior version of the bill and  
          insert the current language for new active solar energy systems.

           ANALYSIS  :    This bill extends the sunset for a solar tax  
          exemption for new active solar energy systems on new  
          construction.  This bill extends the exemption through 2023-24,  
          and extends the sunset through January 1, 2025.  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  
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                                                                     SB 871
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          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, from the definition of "newly constructed," the  
          construction or addition of an active solar system.

          This bill specifies that this exclusion for the construction or  
          addition of an active solar energy system applies through the  
          2023-24 fiscal year, and remains in effect only until January 1,  
          2025.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Budget and Fiscal Review Committee, this  
          bill should not result in an immediate reduction in ad valorem  
          tax revenues in the 2014-15 budget year.  Thereafter, this bill  
          should result in reductions of $5 million, per year, in ad  
          valorem tax revenues.  This would be offset somewhat by the  
          purchase of active solar systems statewide.


          AB:k  6/15/14   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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