Senate Bill No. 256-Senators Titus, Wiener, Augustine, Adler, Coffin, Jacobsen, Neal, O'Donnell, Rawson, Regan, Schneider, Shaffer, James, Washington and McGinness
April 2, 1997
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Referred to Committee on Taxation
SUMMARY--Revises exemption from property tax provided for property used to produce electrical energy from solar energy. (BDR 32-33)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to taxation; revising the exemption from property tax provided for property used for the production of electrical energy from solar energy; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 361 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in this section, all property, both real and personal, is exempt from taxation as set forth in this section to the extent that the property is used as a facility for the production of electrical energy from solar energy.
2. Personal property exempted pursuant to subsection 1 may not receive an exemption for more than 10 consecutive years.
3. Real property exempted pursuant to subsection 1 may not receive an exemption for more than 20 consecutive years.
4. The provisions of this section do not apply to:
(a) Residential property; and
(b) Property that is used as a facility for the production of electrical energy from solar energy before July 1, 1997.
5. As used in this section, "facility for the production of electrical energy from solar energy" means a facility which uses solar energy as its primary fuel in the production of electricity. The term includes all the equipment in the facility used to collect, store and convert into electricity the energy derived from solar energy.
Sec. NRS 361.0685 is hereby amended to read as follows:
361.06851. Except as otherwise provided in this section, if a:
(a) Business that engages in the primary trade of preparing, fabricating, manufacturing or otherwise processing raw material or an intermediate product through a process in which at least 50 percent of the material or product is recycled on site; or
(b) Business that includes as a primary component [an active system to utilize solar energy or] a facility for the production of electrical energy from recycled material,
is found by the commission on economic development to have as a primary purpose the conservation of energy or the substitution of other sources of energy for fossil sources of energy and obtains certification from the commission on economic development pursuant to NRS 231.139, 75 percent of the personal and real property of the business is exempt from taxation.
2. Before an exemption may be granted pursuant to subsection 1, the business must execute an agreement with the commission on economic development which states that the business will continue in operation in [Nevada] this state for 30 or more years after the date on which the exemption is granted. The agreement must bind the successors in interest of the business. The exemption pursuant to this section continues until the expiration of the agreement or until the business discontinues in operation in [Nevada,] this state, whichever occurs first.
3. The exemption provided in this section applies only to the business for which certification was granted pursuant to NRS 231.139 and the property used in connection with that business. The exemption does not apply to property in [Nevada] this state that is not related to the business for which the certification was granted pursuant to NRS 231.139 or to property in existence and subject to taxation before the certification was granted.
4. Personal property exempted pursuant to subsection 1 may not receive an exemption for more than 10 consecutive years. Real property exempted pursuant to subsection 1 may not receive an exemption for more than 20 consecutive years.
5. As used in this section [:
(a) An "active system to utilize solar energy" is one which uses solar devices thermally isolated from the area where the energy is used and includes all the equipment used to collect and store solar energy, and to convert this energy into electricity, if the energy is used for:
(1) Heating water for domestic, recreational, therapeutic or commercial use;
(2) Heating or cooling air;
(3) Production of electricity;
(4) Industrial heating; or
(5) Mechanical energy.
(b) A] , a "facility for the production of electrical energy from recycled material" is a facility which uses recycled material as its primary fuel including material from:
[(1)] (a) Industrial or domestic waste, other than hazardous waste, even though it includes a product made from oil, natural gas or coal, such as plastics, asphalt shingles or tires;
[(2)] (b) Agricultural crops, whether terrestrial or aquatic, and agricultural waste, such as manure and residue from crops; and
[(3)] (c) Municipal waste, such as sewage and sludge.
The term includes all the equipment in the facility used to process and convert into electricity the energy derived from a recycled material fuel.
Sec. 3. 1. An exemption granted to a business that includes as a primary component an active system to utilize solar energy pursuant to NRS 361.0685 before July 1, 1997, continues until the expiration of the agreement entered into pursuant to subsection 2 of that section or until the business discontinues in operation in this state, whichever occurs first.
2. As used in this section, "active system to utilize solar energy" means a system that uses solar devices thermally isolated from the area where the energy is used and includes all the equipment used to collect and store solar energy, and to convert this energy into electricity, if the energy is used for:
(a) Heating water for domestic, recreational, therapeutic or commercial use;
(b) Heating or cooling air;
(c) Production of electricity;
(d) Industrial heating; or
(e) Mechanical energy.
Sec. 4. This act becomes effective on July 1, 1997.