Existing property tax law generally requires a county assessor to assess all property subject to general property taxation at its full value, but requires the State Board of Equalization to annually value and assess all of the taxable property within the state that is to be assessed by it pursuant to the California Constitution, which includes, among other things, property, except franchises, owned or used by companies transmitting or selling electricity and property owned or used by other public utilities, as authorized by the Legislature. Existing property tax law authorizes the board to use the principle of unit valuation in valuing properties of a state assessee that are operated as a unit in a primary function of the assessee, and provides for the allocation of property tax assessed value and revenues from the unitary and operating nonunitary property, as defined, of the state assessee among the various counties in which that property is located.

Existing property tax law requires the board to annually assess every electric generation facility with a generating capacity of 50 megawatts or more that is owned or operated by an electrical corporation, as defined. Existing property tax law provides an exception from this requirement for qualifying small power production facilities and qualifying cogeneration facilities, as defined by reference to specified federal law.

This bill would provide an additional exception for a facility producing power from other than a conventional power source that is an exempt wholesale generator, as defined by reference to specified federal law, thereby requiring that these facilities be assessed by county assessors. By requiring county assessors to assess certain facilities, this bill would impose a state-mandated local program.

Existing property tax law specifies that the above-described provisions relating to assessment of electric generation facilities by the board supersede any contrary regulation in existence as of the effective date of the existing provisions.

This bill would delete this specification.

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.