SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 1105 (Substitute S-1 as reported)
Senate Bill 1106 (as reported without amendment)
Sponsor: Senator Curtis S. VanderWall
CONTENT
Senate Bill 1105 (S-1) would enact the "Renewable Energy Facilities Payment in Lieu of Tax Act" to do the following:
-- Allow an owner or lessee of a qualified renewable energy facility to file an application for a renewable energy facilities exemption certificate with the clerk of the local governmental assessing authority where the facility was or would be located.
-- Require the legislative body of the assessing authority, within 60 days of receiving an application, to determine whether the facility for which the exemption was claimed was a qualified renewable energy facility and either approve or disapprove the application in accordance with its determination.
-- Require the State Tax Commission, within 60 days of receiving an approved application submitted before October 31 of that year, to issue a renewable energy facilities exemption certificate effective on the immediately succeeding December 31.
-- Prescribe procedures for an appeal of an assessing authority's disapproval of an application.
-- Prescribe the information that would have to be included in a certificate.
-- Specify that, while its renewable energy facilities exemption certificate was in force, a facility would be exempt from property tax and ad valorem taxes imposed under Public Act 189 of 1953.
-- Require an owner or lessee of a facility for which a certificate was issued to make an annual payment in lieu of tax of $3,500 per megawatt of nameplate capacity, unless the owner or lessee of the facility and the local governmental assessing authority agreed to a lesser amount.
-- Specify that a certificate issued under the proposed Act would be in force beginning on its effective date and ending on the date the facility permanently ceased operation, an agreed upon termination date, or the date of revocation, whichever was earlier.
-- Allow the holder of a certificate to transfer it to a new owner or lessee of a qualified renewable energy facility.
Senate Bill 1106 would amend the General Property Tax Act to specify that a facility for which a renewable energy facilities exemption certificate issued under the proposed Renewable Energy Facilities Payment in Lieu of Tax Act, but not the land on which the facility was or would be located, would be exempt from tax collected under the General Property Tax Act for the period beginning on the certificate's effective date and continuing as long as the certificate was in force.
The bills are tie-barred.