California Property Tax Exemptions For Solar Energy Systems Extended To 2025
New submitter DaveSmith1982 writes with word from PV Tech that A property tax exemption for solar power systems in California has been extended to 2025, following the passing of a bill as part of the annual state budget. Senate Bill 871 (SB871) was approved during the signing of the budget by governor Jerry Brown, which took place last week. The wording of SB871 extends the period during which property taxes will not be applied to "active solar energy systems," which includes PV and solar water heaters.
Do they charge property tax for regular water heaters in California?
California is crazy. My dad bought in 1971 pays $600/year in property tax. Neighbors bought 25 years later the larger house next door pay about $6000/yr. The bonus is you can inherit the prop 13 property tax valuation with the property. This also holds for corporations.
What needs fixing?
The government has too much money already.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
Note that they reassess the property tax if you refinance your loan though. Mine went up $520/yr after refinancing during the 2008-9 crash.
I'm super cereal.
Maybe if you take cash out. I've never been re-assessed on a refi.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
The market adjusts the values of these properties accordingly. It's part of the reason real estate is so expensive in CA (there are other reasons, but prop 13 contributes). The problem is that new buyers have to pay those inflated prices, usually with a mortage. So what? Think about it. If you're not swinging a smaller mortage and paying higher property taxes, you're paying more interest on your debt rather than paying higher property taxes. Thus, money that used to go to the state goes to the banks
Once again, it's not the only reason the real estate is expensive. I don't mean to imply that throwing more money at state services is necessarily that answer either--for PEUs have captured the apparatus of government just as surely as the banks have.
It's just one of the many facets of the ways in which California is disfunctional; but the whole USA is disfunctional in one way or another these days. There is no real escape. There is no easy fix, even though many people would like you to think there is.
For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
It only means you don't really own your property. You are leasing it from the government. That's insane.
“He’s not deformed, he’s just drunk!”
tax breaks on upper-middle class and rich people using an otherwise-uneconomical energy source...
Just like the electric car subsidies that help rich people buy a Tesla or Fisker as their 2nd, 3rd, 4th etc car (which the upper classes COULD afford on their own but choose not to without the subsidies "because they're too expensive") while the poorer part of the population is left with old, inefficient, expensive-to-operate "clunkers".
If the party of "Tax the Rich!" TRULY wants to actively subsidize things like e-cars and provide the wealthier with tax breaks for things like solar panels solar panels, I propose they finally REALLY tax the "rich" (Something they've NEVER tried) as follows: a flat percentage tax on all global ASSETS over $5 million ($10 million for FAMILY farms and manufacturing firms where the family lives on and operates the farm, or the family operates the factory). This sort of tax would ACTUALLY hit people like Bill Gates and Warren Buffet and George Soros instead of the usual "tax the rich" schemes that they push that never touch the rich but actually hit the middle, and particularly upper-middle, class. All-too-often, these tax deductions become part of a portfolio of financial tactics the truly rich use to offset their incomes and thus avoid paying taxes - this is why so many rich celebrities have so many odd things like farms with odd crops (which they rarely even visit), and apiaries. Maps of subsidies and tax exemptions for farms, ethanol production, etc are interesting; most subsidies and tax exemptions actually go to urban addresses of rich investors.
Average Americans should simply never be involved in the forced support (via subsidy OR tax break) of economic inefficiencies.
Driving the cost of purchasing a house up will reduce the market value of the house, not increase it. Purchasers pay the tax on the assessed value, holders pay tax on their last assessment. Tax rates have to go up to cover the lost revenue to holders, increasing the cost to purchasers.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
You can never tax the rich or churches as they write the tax codes.
AC runs an off shore tax shelter and is trying to drum up business.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
Not a bad point. Asymmetric warfare does indeed cause problems. Goooood morning Vietnam... but the geurillas in Vietnam were backed by somebody, and ISIS is getting hi-tech from... well... I've heard some interesting theories. Round up the usual suspects.
It's like a fulcrum I suppose. Asymmetric warfare has always involved leverage. The weight is bigger on both sides now.
For all intensive purposes, "whom" is no longer a word. That begs the question, "who cares"?
We subsidize other forms of power generation constantly buy forcing the public to pay for all the externalities. If the power companies had to pay for all the costs related to mining, drilling, transporting, and burning fossil fuels, renewables would make a lot more economic sense even without the incentives.
What has it really cost us to keep the oil flowing out of the Middle East? What about the environmental and health impacts of burning fossil fuels? Who is paying for that?
Who is paying for that?
You wrote that on a computer most likely powered by fossil fuels, and posted on a web site almost certainly powered by fossil fuels, on an Internet developed by defense spending. So look in a mirror for the answer to your question.
I'm not sure what your point is exactly. If by "look in the mirror" you mean that I'm paying for those externalities, I agree. We pay for them through higher taxes, higher health care and insurance costs, among other ways.
And for the record I don't mind spending money on necessary defense. I do have trouble with the idea of propping up unpopular leaders of questionable ethics in exchange for short term stability and cheap gas prices. You can argue that it's necessary but either way we still pay for it. It's still an additional cost related to fossil fuels.
If you're implying that I'm part of the problem as a customer of a utility that primarily generates power via fossil fuels, I'll remind you that most of us don't have a say in where our utilities get their power from, - which is why it is good that states like California gives breaks to those who want to generate their own power using solar energy. I'm not even blaming the utilities entirely. Many of them are trying to generate electricity using cleaner sources of power and spend significant money on energy efficiency programs.
I'll also add that I'm typing this on a laptop provided by a non-profit energy efficiency organization (along with a salary) in exchange for my services. A laptop that I transport to and from work... on a bike.
...for the affluent. Wondeful. I'm so sick of California.
"Too much money" compared to what? The amount you decided the public sector should have?
Forget magic. Any technology distinguishable from divine power is insufficiently advanced.
All these green energy subsidies have to stop. I believe we've past the tipping point years ago that green energy technology needed government money for development. Perhaps it was five years ago, maybe it was fifty, but we don't need to give rich people money to buy solar panels they'd be buying anyway.
Solar panels reduce carbon released into the environment, we know that. Solar panels save money for those people that can afford to buy them. What we have now are tax avoidance schemes for rich people. This makes poor people bear a greater portion of the tax load.
What seems to be an issue lately is that people are buying solar panels too quickly. The electric grid in many places was not designed to handle residences putting energy into the grid, it was designed only for residences to draw from it. Solar power is good, we need more of it. Problem is that if the solar power is added too quickly to the system then it can become unstable. Giving people tax breaks to people for putting solar panels on the roof of their house means less tax money to improve the electric grid to accommodate the increased use of solar power.
Same goes for electric cars, CFL bulbs, windmills, and bio fuels. People would be making money with these technologies without the government subsidies. With the subsidies they are making more money by giving tax breaks to the people wealthy enough to buy them. It's rich people becoming richer by taking from the poor. Because solar panels are involved we're all supposed to feel good about ourselves. Everyone is going to feel real good when the power goes out because we gave tax money to rich people instead of improving an aging electric grid.
We don't need to encourage people to buy solar panels any more with tax money. The money saved in power produced is enough. The good feelings people have in saving the environment doesn't hurt either.
I am armed because I am free. I am free because I am armed.
That has nothing to do with property tax.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
The amount that leaves you with a functioning society. Too much government money attracts exactly the wrong people into government (e.g. Feinstein) and results in out of control government growth and a police state.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'