Bill

HB 2500

83(R) - 2013
Taxes

Vote Recommendation

Yes
  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral

Author(s)

Dwayne Bohac

Bill Caption

Relating to the appraisal for ad valorem tax purposes of solar energy property.

Fiscal Notes

The bill's requirement that the chief appraiser calculate the depreciated value of the solar energy property by using a useful life that does not exceed ten years would create a cost to the state through the operation of the school finance formulas.

Bill Analysis

Summary: HB 2500 would clarify the process for appraising certain solar property due to concerns that the method for appraising solar facilities for property tax purposes is unclear and that this ambiguity has produced inconsistent results by the state's appraisal districts. HB 2500 would require the “cost” method of appraisal to determine the market value of a solar energy property. According to the Legislative Budget Board, HB 2500’s requirement that an appraiser calculate the depreciated value of the property by using a useful life that does not exceed ten years would result in a partial exemption for solar property.

Analysis: HB 2500 is mostly a clarification bill, but it does have a provision that will result in a partial exemption for solar producers. Due to this exemption that will limit government revenues, and because HB 2500 clarifies a complicated and ambiguous process for appraising such property, we support HB 2500.