SB 1329: Real property tax: valuation: active solar energy system.

Session Year: 2025-2026
House: Senate
Latest Version Date: 2026-07-01

Current Status:

In Progress

(2026-07-01: Read second time and amended. Re-referred to Com. on APPR.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

The California Constitution generally limits the maximum rate of ad valorem tax on real property to 1% of the full cash value of the property and defines full cash value for these purposes as the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. Pursuant to constitutional authorization, existing property tax law excludes from the definition of newly constructed for these purposes the construction or addition of any active solar energy system, as defined, through the 202526 fiscal year, except as specified.

This bill would establish uniform rules regarding the method of valuation of an active solar energy system. The bill would set forth parameters for determining the value of an active solar energy system, as specified, and would provide that the valuation of such a system is limited to only the tangible property comprising the active solar energy system, and does not include intangible assets and rights of the system, as described. By expanding the duties of local tax officials, this bill would impose a state-mandated local program.

This bill would prescribe rules for the valuation of an active solar energy system under certain valuation methods, including a requirement that, under the income method, the assessor exclude from income the benefit from, among other things, renewable energy credits, as defined. By expanding the duties of local tax officials, this bill would impose a state-mandated local program.

Existing law requires the state 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 those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

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 the statutory provisions noted above.

This bill would take effect immediately as a tax levy.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of ²/₃ of the membership of each house of the Legislature.

Discussed in Hearing