California Property Tax Exemptions For Solar Energy Systems Extended To 2025 76
New submitter DaveSmith1982 writes with word from PV Tech that A property tax exemption for solar power systems in California has been extended to 2025, following the passing of a bill as part of the annual state budget. Senate Bill 871 (SB871) was approved during the signing of the budget by governor Jerry Brown, which took place last week. The wording of SB871 extends the period during which property taxes will not be applied to "active solar energy systems," which includes PV and solar water heaters.
Re:Why do we permit "property tax" at all? (Score:5, Insightful)
In a system with no property tax, there would be no disincentive to hoard property. This could have serious consequences for the economy. Imagine section after section of productive timber land being held simply on spec, while lumber prices soar..
If you're going to own real property, there's a general consensus that you should put it to productive use, or forfeit. Thus, that vacant lot in the city starts costing you... so you sell it off instead of holding it forever, and then somebody accumulates the lots, options an adjacent lot, gets plans approved for an apartment and... productive use.
Also, property tax is "progressive" in the sense that it's paid by people that have more wealth. Compare and contrast with sales tax which is "regressive"--taking a heavy toll on the poor.
Now of course all the "shrink government to the size of a thimble" people are going to come out of the woodwork. Sorry. It just isn't practical in the 21st century. We are not living in the days when bands of "Indians" with bow and arrow or colonists with muskets gave the British a run for their money. .