State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2617: renewable energy storage equipment; valuation

PRIME SPONSOR: Representative Cobb, LD 5

BILL STATUS: Caucus & COW

                                APPROP: DP 10-0-0-1

 

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteExempts machinery, equipment or transmission lines used directly in storing electricity and transformers and control equipment used at storage sites from Transaction Privilege Tax (TPT) and Use Tax. Includes storage in equipment in renewable energy district definitions. Defines renewable energy storage equipment for valuation purposes.

History

State law levies a Transaction Privilege Tax (TPT) on gross receipts from business activities. A.R.S. § 42-5061 deducts proceeds from the sale of specified categories of tangible personal property from the TPT tax base.

State law also levies a Use Tax on items purchased in other states and brought into Arizona when no tax or a lower rate of taxes was paid in the other state. A.R.S. § 42-5159 exempts specified tangible personal property from the use tax.

A.R.S. § 9-499.14 and A.R.S. § 11-254.07 allow the governing body of a city or town or a county board of supervisors to designate a qualifying parcel of land as a renewable energy incentive district. After establishing a renewable energy incentive district, the governing body is required to adopt a renewable energy incentive plan that may include: a) expedited zoning or rezoning procedures; b) expedited processing of plans, proposals and permits; c) waivers or abatement of county zoning fees, processing fees and improvement district fees and assessments for development activities and; d) waiver or abatement of development standards and procedural requirements.

Provisions

1.       Includes storage in equipment in city and county renewable energy district definitions. (Sec. 1 & Sec. 2)

2.       Exempts machinery, equipment or transmission lines used directly in storing equipment and transformers and control equipment used at storage sites from Transaction Privilege Tax (TPT) and Use Tax (Sec. 3, Sec. 4 & Sec. 5)

3.       Requires the Department of Revenue to annually determine the value of property used by taxpayers in the business or electric storage.  (Sec. 6)

4.       Specifies, for purposes of tax valuation, that renewable energy storage equipment is presumed to store energy that is generated by solar, wind or other nonpetroleum renewable sources in order to support those sources of energy. (Sec. 7)

5.       Modifies, for purposes of tax valuation and for purposes of renewable energy districts, the definition of renewable energy equipment to add storage if any portion of the stored electric power was generated by solar, wind or other nonpetroleum renewable sources. (Sec. 7)

6.       Adds storage to the full cash value of renewable energy equipment. (Sec. 7)

7.       Adds storage to the definition of taxable original cost of renewable energy equipment. (Sec. 7)

8.       Contains a conditional enactment clause. (Sec. 8)

9.       Makes technical and conforming changes.

10.    

11.    

12.   ---------- DOCUMENT FOOTER ---------

13.   Fifty-fourth Legislature                       HB 2617

14.   First Regular Session                            Version 1: Appropriations

15.    

16.   ---------- DOCUMENT FOOTER ---------