California 2021-2022 Regular Session Status: Enacted

SB 267 — Property taxation: active solar energy systems: partnership flip transactions.

Last action — Chaptered by Secretary of State. Chapter 424, Statutes of 2021.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 28, 2021. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

The California Constitution generally limits the maximum rate of ad valorem tax on real property to 1% of the full cash value of the property and defines "full cash value" for these purposes as the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. Pursuant to constitutional authorization, existing property tax law excludes from the definition of "newly constructed" for these purposes the construction or addition of any active solar energy system, as defined, through the 2023–24 fiscal year. Under existing property tax law, this exclusion remains in effect only until there is a subsequent change in ownership, but an active solar energy system that qualifies for the exclusion before January 1, 2025, will continue to receive the exclusion until there is a subsequent change in ownership. This bill would provide that for a legal entity that owns an active solar energy system pursuant to a partnership flip transaction, as defined, neither an initial transfer of a capital and profits interest in the legal entity, nor any subsequent change in the allocation of the capital and profits of the legal entity among the members, shall be deemed to constitute a transfer of control of, or of a majority interest in, the legal entity. The bill would provide that if the parties to a partnership flip transaction sell or exchange ownership of the partnership or limited liability company in a transaction or series of transactions, that are separate and apart from the partnership flip transaction conducted pursuant to the bill's provisions, in such a manner that a change in ownership of the partnership or limited liability company occurs, as specified, then the bill's provisions do not apply to that transaction or transactions. The bill would make related findings and declarations. By adding to the duties of county assessors in applying this exclusion, the bill would impose a state-mandated local program. 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. Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 424, Statutes of 2021.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 1 p.m.

  4. Assembly amendments concurred in. (Ayes 33. Noes 4. Page 2351.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 72. Noes 1. Page 2601.) Ordered to the Senate.

  7. Read second time. Ordered to third reading.

  8. From committee: Do pass. (Ayes 13. Noes 0.) (August 26).

  9. August 19 set for first hearing. Placed on suspense file.

  10. From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

  11. From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 5). Re-referred to Com. on APPR.

  12. From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

  13. June 21 hearing postponed by committee.

  14. Referred to Com. on REV. & TAX.

  15. In Assembly. Read first time. Held at Desk.

  16. Read third time. Passed. (Ayes 34. Noes 2. Page 714.) Ordered to the Assembly.

  17. Read second time. Ordered to third reading.

  18. From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

  19. Set for hearing April 5.

  20. March 22 hearing postponed by committee.

  21. Set for hearing March 22.

  22. From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 479.) (March 11). Re-referred to Com. on APPR.

  23. Set for hearing March 11.

  24. Joint Rule 55 suspended. (Ayes 32. Noes 4. Page 272.)

  25. (Ayes 32. Noes 4.)

  26. Art. IV. Sec. 8(a) of the Constitution dispensed with.

  27. Referred to Com. on GOV. & F.

  28. From printer. May be acted upon on or after February 28.

  29. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Hertzberg · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on · 3 voted No

Sponsors (1)

  • Hertzberg

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Unfinished Business SB267 Hertzberg Concurrence

Passed 33 Yea · 4 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 19202
Democratic 11101
Republican 3100
Total 33403
% of votes cast 83%10%0%8%
How each member voted (40)
Member Party Vote
Dodd — Yea
Wilk — Yea
Kamlager — Yea
Roth — Yea
Rubio — Yea
Skinner — Yea
Hertzberg — Yea
Glazer — Yea
Leyva — Yea
Wieckowski — Yea
Atkins — Yea
Bradford — Yea
Newman — Yea
Nielsen — Nay
Bates — Nay
Borgeas — Not Voting
Melendez — Not Voting
Eggman — Yea
Pan — Yea
Hueso — Yea
Min — Yea
Portantino — Yea
Gonzalez — Yea
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Nay
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Not Voting
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Nay
Jones, Brian W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

SB 267 Hertzberg Senate Third Reading By Ward

Passed 72 Yea · 1 Nay · 6 Other
Party YeaNayPresentNot Voting
Democratic 25001
Unaffiliated 38105
Republican 9000
Total 72106
% of votes cast 91%1%0%8%
How each member voted (79)
Member Party Vote
Bloom — Yea
Friedman — Yea
Voepel — Yea
Cooley — Yea
Chiu — Yea
Rendon — Yea
Mullin — Yea
Holden — Yea
Mathis — Not Voting
Bigelow — Not Voting
Frazier — Not Voting
Villapudua — Yea
Jones-Sawyer — Yea
Santiago — Yea
Maienschein — Yea
Rodriguez — Yea
Quirk — Yea
Kiley — Yea
Mayes — Yea
Nazarian — Yea
Ting — Yea
Wood — Yea
Low — Yea
Levine — Yea
O'Donnell — Yea
Waldron — Yea
Daly — Yea
McCarty — Yea
Medina — Yea
Gray — Yea
Smith — Yea
Burke — Yea
Cunningham — Yea
Cooper — Yea
Chau — Yea
Salas — Nay
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Not Voting
Lorena Gonzalez — Yea
Luz Rivas — Yea
Mark Stone — Yea
Vince Fong — Not Voting
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Not Voting
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea
Seyarto, Kelly Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Do pass.

Passed 13 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 6002
Democratic 6000
Republican 1001
Total 13003
% of votes cast 81%0%0%19%
How each member voted (16)
Member Party Vote
Levine — Yea
Quirk — Yea
Chau — Yea
Bigelow — Not Voting
Eduardo Garcia — Yea
Lorena Gonzalez — Yea
Vince Fong — Not Voting
Wendy Carrillo — Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Gabriel, Jesse Democratic Yea
Kalra, Ash Democratic Yea
Rivas, Robert Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Dahle, Megan Republican Not Voting
Davies, Laurie Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Appropriations]

Passed 11 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 7000
Democratic 3000
Republican 1000
Total 11000
% of votes cast 100%0%0%0%
How each member voted (11)
Member Party Vote
Gray — Yea
Mayes — Yea
Quirk — Yea
Levine — Yea
Mullin — Yea
Burke — Yea
Luz Rivas — Yea
Grayson, Timothy S. Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Seyarto, Kelly Republican Yea

Official roll call →

3rd Reading

Passed 34 Yea · 2 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 10003
Unaffiliated 21101
Republican 3100
Total 34204
% of votes cast 85%5%0%10%
How each member voted (40)
Member Party Vote
Leyva — Yea
Borgeas — Yea
Skinner — Yea
Roth — Yea
Wieckowski — Yea
Atkins — Yea
Portantino — Yea
Glazer — Yea
Nielsen — Yea
Wilk — Yea
Kamlager — Yea
Dodd — Yea
Rubio — Yea
Bradford — Yea
Min — Yea
Eggman — Yea
Hertzberg — Yea
Pan — Yea
Hueso — Yea
Newman — Yea
Gonzalez — Yea
Bates — Nay
Melendez — Not Voting
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Not Voting
Laird, John Democratic Yea
Limón, Monique Democratic Not Voting
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Not Voting
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Nay
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

Subjects

taxation energy
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Frequently asked questions

What does SB 267 do?
The California Constitution generally limits the maximum rate of ad valorem tax on real property to 1% of the full cash value of the property and defines "full cash value" for these purposes as the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. Pursuant to constitutional authorization, existing property tax law excludes from the definition of "newly constructed" for these purposes the construction or addition of any active solar energy system, as defined, through the 2023–24 fiscal year. Under existing property tax law, this exclusion remains in effect only until there is a subsequent change in ownership, but an active solar energy system that qualifies for the exclusion before January 1, 2025, will continue to receive the exclusion until there is a subsequent change in ownership. This bill would provide that for a legal entity that owns an active solar energy system pursuant to a partnership flip transaction, as defined, neither an initial transfer of a capital and profits interest in the legal entity, nor any subsequent change in the allocation of the capital and profits of the legal entity among the members, shall be deemed to constitute a transfer of control of, or of a majority interest in, the legal entity. The bill would provide that if the parties to a partnership flip transaction sell or exchange ownership of the partnership or limited liability company in a transaction or series of transactions, that are separate and apart from the partnership flip transaction conducted pursuant to the bill's provisions, in such a manner that a change in ownership of the partnership or limited liability company occurs, as specified, then the bill's provisions do not apply to that transaction or transactions. The bill would make related findings and declarations. By adding to the duties of county assessors in applying this exclusion, the bill would impose a state-mandated local program. 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. Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. This bill would take effect immediately as a tax levy.
Who sponsors SB 267?
SB 267 is sponsored by Hertzberg.
What is the current status of SB 267?
This bill has been enacted into law. Introduced January 28, 2021. Enacted.
Where can I track SB 267?
Track SB 267 free on One Click Politics — get push/email alerts when it moves.

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