Bill Text: AZ HB2403 | 2014 | Fifty-first Legislature 2nd Regular | Engrossed
Bill Title: Property; valuation; renewable energy; equipment
Spectrum: Moderate Partisan Bill (Republican 25-3)
Status: (Passed) 2014-04-30 - Chapter 264 [HB2403 Detail]
Download: Arizona-2014-HB2403-Engrossed.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
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HOUSE BILL 2403 |
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AN ACT
Amending title 42, chapter 13, Arizona Revised Statutes, by adding article 11; amending section 42-14155, Arizona Revised Statutes; relating to renewable energy.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 42, chapter 13, Arizona Revised Statutes, is amended by adding article 11, to read:
ARTICLE 11. VALUATION OF ABANDONED LEASED PROPERTY
42-13501. Limit on valuation of real property with abandoned renewable energy equipment
A. The assessed value of a leased portion of real property that qualifies under subsection B of this section is the greater of the total lease payments collected by the real property owner during the tax year or the assessed value of the leased property if it were classified as class two property.
B. The real property must meet all of the following conditions:
1. The real property is being leased by the real property owner to a lessee that maintains renewable energy equipment on the leased real property.
2. The real property owner or any affiliate of the owner has no ownership interest in the lessee or any of its affiliates.
3. The lessee is in default on the lease, is not making lease payments under the lease and has abandoned its renewable energy equipment on the leased real property.
4. The leased real property was classified as class two agricultural property for the tax year before the lease term commenced.
5. The total lease payments collected by the real property owner under the lease in default are less than the assessed value of the leased real property under class one.
Sec. 2. Section 42-14155, Arizona Revised Statutes, is amended to read:
42-14155. Valuation of renewable energy equipment; definitions
A. Through December 31, 2040, the department shall determine the valuation full cash value of taxable renewable energy equipment in the manner prescribed by this section.
B. The full cash value of renewable energy equipment is twenty per cent of the depreciated cost of the equipment. depreciated cost shall be determined by deducting depreciation from taxable original cost.
C. For the purposes of this section, :
1. "Depreciation" means straight‑line depreciation over the useful life, as adopted by the department, of the item of property. depreciation shall not exceed ninety per cent of the adjusted original cost.
2. "Original cost" means the actual cost, without trending, of acquiring or constructing property, including additions, retirements, adjustments and transfers.
3. "Renewable energy equipment" means electric generation facilities, electric transmission, electric distribution, gas distribution or combination gas and electric transmission and distribution and transmission and distribution cooperative property that is located in this state, that is used or useful for the generation, storage, transmission or distribution of electric power, energy or fuel derived from solar, wind or other nonpetroleum renewable sources not intended for self‑consumption, including materials and supplies and construction work in progress, but excluding licensed vehicles and property valued under sections 42‑14154 and 42‑14156.
4. "Taxable original cost" means original cost, as defined in this section, reduced by the value of any investment tax credits, production tax credits or cash grants in lieu of investment tax credits applicable to the taxable renewable energy equipment.
