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Active Solar Energy System Exclusion The addition (installation) of an active solar energy system to an existing structure is excluded from property tax assessment under Revenue and Tax code section 73, which defines the term "active solar energy system" as any system that uses solar devices which are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy. It does not include solar swimming pool heaters or hot tub heaters. An active solar energy system may be used for any of the following:
- Domestic, recreational, therapeutic, or service water heating
- Space conditioning
- Production of electricity
- Process heat
- Solar mechanical energy
When a qualifying solar energy system is installed on an existing structure, the system is automatically excluded from assessment. There is no need to file a claim for exclusion with our office. As of September 2008, the exclusion was modified to include the construction of an active solar energy system incorporated by the owner-builder in the initial construction of a new building that the owner-builder does not intend to occupy or use. The solar energy system exclusion applies to the initial purchaser of a new building that incorporated such a system in its initial construction, if the following conditions are met:
- The owner-builder did occupy or use the new building prior to the sale,
- The owner-builder did not receive an exclusion for the same active solar energy system,
- The initial purchaser purchased the new building prior to the building becoming subject to assessment to the owner-builder (before January 1st of the year following completion of new construction), and
- The initial purchaser files a claim form with the Assessor and provides the necessary documentation to identify the value attributable to the active solar energy system that was included in the purchase price of the new building.
The solar energy system exclusion will remain in effect until a change in ownership of the system occurs.
Initial Purchaser Claim for Solar Energy System New Construction Exclusion forms and additional information can be found on our website: https://www.acassessor.org
Rainwater Capture System Exclusion
The construction or addition of a rainwater capture system is excluded from property tax assessment under Revenue and Tax code section 74.8, which defines the term "rainwater capture system" as a facility designed to capture, retain, and store rain water flowing off a building rooftop or other manmade aboveground hard surface for subsequent onsite use. A "facility" is something designed, built, or installed to serve a particular purpose. The rainwater capture system exclusion applies to real property and may include above or in-ground tanks, piping, pumps, or filtration systems. A rainwater capture system does not include the roof of a building. The exclusion does not apply to portable rainwater capture systems since they are items of personal property. When a rainwater capture system is added to an existing structure, the system is automatically excluded from assessment. There is no need to file a claim for exclusion with our office. The exclusion includes the construction of a rainwater capture system incorporated by the owner-builder in the initial construction of a new building that the owner-builder does not intend to occupy or use. The rainwater capture system exclusion applies to the initial purchaser of a new building that incorporated such a system in its initial construction, if the following conditions are met:
- The owner-builder did occupy or use the building prior to the sale,
- The owner-builder did not receive an exclusion for the same rainwater capture system,
- The initial purchaser purchased the new building prior to the building becoming subject to assessment to the owner-builder (before January 1st of the year following completion of new construction), and
- The initial purchaser files a claim form with the Assessor and provides the necessary documentation to identify the value attributable to the rainwater capture system that was included in the purchase price of the new building.
Once a rainwater capture system is excluded from assessment, the exclusion will remain in effect until a change in ownership of the building occurs. Initial Purchaser Claim for Rainwater Capture System New Construction Exclusion forms are available on our website: https://www.acassessor.org
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