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AB-1516 • 2026

Real property taxation.

Real property taxation.

Education Energy Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Committee on Revenue and Taxation
Last action
Official status
Chaptered
Effective date
Not listed

Plain English Breakdown

The official text does not explicitly define 'active solar energy system' beyond referencing existing definitions, so the meaning provided relies on general knowledge consistent with the context.

Changes to Property Tax Rules for Solar Systems and Public Schools

This law sets a three-year deadline for solar tax claims starting in 2027 and adds public schools to the list of groups eligible for refunds on late property tax filings.

What This Bill Does

  • Sets January 1, 2027 as the start date for new rules about active solar energy systems.
  • States that a claim for an active solar system exclusion is timely if filed within three years of purchase.
  • Applies late claims for solar exclusions starting on the lien date of the year they are filed.
  • Adds public schools to the list of groups eligible for refunds on taxes, penalties, and interest from late exemption filings for supplemental assessments exceeding $250.
  • Includes public schools in rules that cancel or refund charges when property is bought after the tax lien date but before the fiscal year starts.

Who It Names or Affects

  • Initial purchasers of new buildings with active solar energy systems
  • Public school districts and organizations
  • Local county assessors who process exemption claims

Terms To Know

Active solar energy system
A device that uses sunlight to generate electricity or heat water, which is excluded from property tax increases when added to a building.
Lien date
The specific day each year (usually January 1) when the government determines who owns property and what it is worth for taxes.
Exemption application
A formal request filed with a county assessor to remove or lower property taxes because of special status, such as being a school or church.

Limits and Unknowns

  • The new solar claim rules only take effect on January 1, 2027.
  • Refunds for late filings are limited to amounts exceeding $250 in total taxes and penalties.
  • State reimbursement to local agencies depends on a future determination by the Commission on State Mandates.

Bill History

  1. California Legislative Information

    Chaptered

Official Summary Text

Real property taxation.