13104151D
SENATE BILL NO. 1286
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the Senate Committee on Finance
on January 22, 2013)
(Patron Prior to Substitute--Senator Deeds)
A BILL to amend and reenact §58.1-3661 of the Code of Virginia,
relating to taxation of solar energy equipment.
Be it enacted by the General Assembly of Virginia:
1. That §58.1-3661 of the Code of Virginia is amended and
reenacted as follows:
§58.1-3661. Certified solar energy equipment, facilities or
devices and certified recycling equipment, facilities or devices.
A. Certified solar energy equipment, facilities,
or devices and certified recycling equipment, facilities, or devices, as
defined herein, are hereby declared to be a separate class of property and
shall constitute a classification for local taxation separate from other
classifications of real or personal property. The governing body of any county,
city, or town may, by ordinance, exempt or partially exempt such
property certified recycling equipment, facilities, or devices from
local taxation in the manner provided by subsection D. Certified solar
energy equipment, facilities, or devices shall be exempt from state and local
taxation pursuant to Article X, Section 6 (d) of the Constitution of Virginia.
B. As used in this section:
"Certified recycling equipment, facilities, or
devices" means machinery and equipment which is certified by the
Department of Waste Management Environmental Quality as integral
to the recycling process and for use primarily for the purpose of abating or
preventing pollution of the atmosphere or waters of the Commonwealth, and used
in manufacturing facilities or plant units which manufacture, process,
compound, or produce for sale recyclable items of tangible personal property at
fixed locations in the Commonwealth.
"Certified solar energy equipment, facilities, or
devices" means any property, including real or personal property,
equipment, facilities, or devices, certified by the local certifying
authority building department to be designed and used primarily for
the purpose of providing for the collection and use of incident solar energy
for water heating, space heating or cooling or other application which would
otherwise require a conventional source of energy such as petroleum products,
natural gas, or electricity.
"Local certifying authority" means the local
building departments or the Department of Waste Management. The State Board of
Housing and Community Development shall promulgate regulations setting forth
criteria for certifiable solar energy equipment. The Department of Waste
Management shall promulgate regulations establishing criteria for recycling
equipment, facilities, or devices.
C. Any person residing in a county, city or town which has
adopted an ordinance pursuant to subsection A may proceed to have solar
energy equipment, facilities, or devices certified as exempt, wholly
or partially, from taxation by applying to the local building department.
If, after examination of such equipment, facility, or device, the local
building department determines that the unit primarily performs any of the
functions set forth in the definition of "certified solar energy
equipment, facilities, or devices" in subsection B and conforms to the
requirements set by regulations of the Board of Housing and Community
Development, such department shall approve and certify such application. The
local department shall forthwith transmit to the local assessing officer those
applications properly approved and certified by the local building department
as meeting all requirements qualifying such equipment, facility, or
device for exemption from taxation. Any person aggrieved by a decision of the
local building department may appeal such decision to the local board of
building code appeals, which may affirm or reverse such decision. Upon
receipt of the certificate from the local building department, the local
assessing officer shall proceed to determine the value of such qualifying solar
energy equipment, facilities, or devices. The exemption provided by this
section for solar energy equipment, facilities, or devices shall be determined
by applying the local tax rate to the value of such solar energy equipment,
facilities, or devices and subtracting such amount either (i) from the total
real property tax due on the real property to which such equipment, facilities,
or devices are attached or (ii) if such equipment, facilities, or devices are
taxable as machinery and tools under §58.1-3507, from the total machinery and
tools tax due on such equipment, facilities, or devices, at the election of the
taxpayer. This exemption shall be effective beginning in the next succeeding
tax year and shall be permitted for a term of not less than five years. In the
event the locality assesses real estate pursuant to §58.1-3292, the exemption
shall be first effective when such real estate is first assessed, but not prior
to the date of such application for exemption.
D. Any person residing in a locality that has adopted an
ordinance pursuant to subsection A may proceed to have recycling equipment,
facilities, or devices certified as exempt, wholly or partially, from taxation
by applying to the Department of Environmental Quality. Upon receipt of the
certificate from the local building department or the Department of
Waste Management Environmental Quality, the local assessing officer
shall, if such local ordinance is in effect, proceed to determine the value of
such qualifying solar energy equipment, facilities, or devices or
certified recycling equipment, facilities, or devices. The exemption provided
by this section shall be determined by applying the local tax rate to the value
of such equipment, facilities or devices and subtracting such amount, wholly or
partially, either (i) from the total real property tax due on the real property
to which such equipment, facilities, or devices are attached or (ii) if such
equipment, facilities, or devices are taxable as machinery and tools under §
58.1-3507, from the total machinery and tools tax due on such equipment, facilities,
or devices, at the election of the taxpayer. This exemption shall be effective
beginning in the next succeeding tax year, and shall be permitted for a term of
not less than five years. In the event the locality assesses real estate
pursuant to §58.1-3292, the exemption shall be first effective when such real
estate is first assessed, but not prior to the date of such application for
exemption.
E. It shall be presumed for purposes of the administration of
ordinances pursuant to this section, and for no other purposes, that the value
of such qualifying solar energy equipment, facilities, and devices is
not less than the normal cost of purchasing and installing such equipment,
facilities, and devices.
F. The State Board of Housing and Community Development
shall promulgate regulations setting forth criteria for certified solar energy
equipment, facilities, or devices. The Department of Environmental Quality
shall promulgate regulations establishing criteria for certified recycling
equipment, facilities, or devices.
|
