Bill Summary for Bill Number SB09-177

Date: 03/03/2009

Final
BILL SUMMARY for SB09-177

SENATE COMMITTEE ON LOCAL GOVERNMENT AND ENERGY

Votes: View-->	Action Taken:
Moved to refer SB 09-177 to the Committee of the W	PASS

02:02 PM -- Senate Bill 09-177

Senator Schwartz, sponsor, described the provisions of the SB 09-177, as introduced, that specifies that for purposes of property taxation, solar energy generation facilities where (1) energy production begins on or after January 1, 2009, and (2) generation capacity is more than 2 megawatts, be valued using the income approach. This means that the actual value will be based on the projected gross revenue of such facilities. Under current law, assessors are allowed to use either the cost approach, the market approach, or the income approach, and traditionally have used the cost approach (Attachment A).

The following persons testified on the bill:

02:06 PM -- JoAnn Groff, Property Tax Administrator, Colorado Department of Local Affairs, described the provisions of SB 06-1275 that requires the State Property Tax Administrator to use the income approach in determining the actual value of wind energy property.

02:10 PM -- Mike Spearman, Saguache County Commissioner, spoke in support of the bill. He also described the start up costs for solar energy generation facilities and the effect of the bill on property tax revenue generated over the life of a project under the proposed process and the traditional method of evaluation.

02:14 PM -- Rick Gilliam, Sun Edison, spoke in support of the bill. He also described his company's 8.2 megawatt solar generation facility in the San Luis Valley in south cental Colorado.


BILL:	SB09-177
TIME:	02:19:54 PM
MOVED:	Schwartz
MOTION:	Moved to refer SB 09-177 to the Committee of the Whole, without amendment, and with a recommendation that it be added to the Consent Calendar. The motion passed on a vote of 6 to 0.
SECONDED:
		VOTE
	Cadman	Yes
	Hodge	Yes
	Kester	Excused
	Lundberg	Yes
	Newell	Yes
	Foster	Yes
	Schwartz	Yes

Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS