SB 686 — Tax, local; solar facility exemption.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2022 SESSION CHAPTER E496 An Act to amend and reenact § 58.1-3661 of the Code of Virginia, relating to local tax;

R O [S 686] Approved LApril L11, 2022 Be it enacted by the General Assembly of Virginia:

E § 58.1-3661.

Certified solar energy equipment, facilities, or devices and certified recyclinDrecycling equA.equipment, facilities, or devices.

AnyA. solar facility installed pursuant to subsections A or B of § 15.2-2288.7 with a nameplate rated electrical generating capacity measured in direct current kilowatts of not more than 25 kilowatts is hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other classifications of real or personal property.

SuchAny facilitiessolar shallfacility installed pursuant to subsections A or B of § 15.2-2288.7 with a nameplate rated electrical generating capacity measured in direct current kilowatts of not more than 25 kilowatts is hereby declared to be whollya separate class of property and shall constitute a classification for local exempt from state and local taxation pursuant to Article X, Section 6 (d) of the Constitution of Virginia.

Certified solar energy equipment, facilities, or devices and certified recycling equipment, facilities, or devices, as defined herein, are hereby declared to be a separate class of property and shallBconstituteshall constitute a classification for local taxation separate from other classifications of real or personal pro8erty.property.

The governing body of any county, city or town may, by ordinance, exempt or partially exempt such property from local taxation in the manner provided by subsection D E.rE. partially exempt such E B.

B.

R "Certified recycling equipment, facilities, or devices" means machinery and equipment which is certified by the Department of Environmental Quality as integral to the recycling process and for use primarily for the purpose of abating or preventing pollution of the atmosphere or waters of the Commonwealth, and used in manufacturing facilities or plant units which manufacture, process, compound, or produce for sale recyclable items of tangible personal property at fixed locations in the Commonwealth.

"Certified solar energy equipment, facilities, or devices" means any property, including real or personal property, equipment, facilities, or devices, excluding any portion of such property that is exempt under § 58.1-3660, certified by the local certifying authority to be designed and used primarily for the purpose of collecting, generating, transferring, or storing thermal or electric energy.

Any person residing in a county, city or town which has adopted an ordinance pursuant to subsection A B may proceed to have solar energy equipment, facilities, or devices certified as exempt, wholly or partially, from taxation by applying to the local building department.

Any person aggrieved by a decision of the local building department may appeal such decision to the local board of buiD.building code appeals, which may affirm or reverse such decision.

D.

The exemption provided by this section shall be determined by applying the local tax rate to the value of such equipment, facilities, or devices and subtracting such amount, wholly or partially, either (i) from the total real property tax due on the real property to which such equipment, facilities, or devices are attached or (ii) if such equipment, facilities, or devices are taxable as machinery and tools under § 58.1-3507, from the total machinery and tools tax due on such beginningequipment, infacilities, theor nextdevices, succeedingat taxthe yearelection and shall be permitted for a term of notthe lesstaxpayer. than five years;

however,This if the taxpayer installs equipment, facilities, or devices and obtains certification for such of 2 equipment, facilities, or devices within one year of installation, the locality may provide by ordinance that the exemption shall be effective asbeginning ofin the datenext ofsucceeding installation,tax year and ifshall thebe taxpayerpermitted hasfor paida anyterm taxesof onnot suchless equipment,than facilities,five oryears; devices, the locality shall reimburse the taxpayer for any such taxes paid.

however, if the taxpayer installs equipment, facilities, or devices and obtains certification for such equipment, facilities, or devices within one year of installation, the locality may provide by ordinance that the exemption shall be effective as of the date of installation, and if the taxpayer has paid any taxes of 2 on such equipment, facilities, or devices, the locality shall reimburse the taxpayer for any such taxes paid.