CA SB1059

Adds Section 64.1 to the Revenue and Taxation Code to clarify that partnership flip transactions involving active solar energy systems do not constitute a change of ownership for property tax purposes.

Specifies that an initial transfer of capital and profits interest in a legal entity, or subsequent changes in allocation of capital and profits among members, shall not be deemed a transfer of control in partnership flip transactions involving active solar energy systems.

Defines "partnership flip transaction" as a financing arrangement where a developer and unrelated parties contribute capital to a partnership, with the unrelated party initially receiving a majority of tax attributes (credits, depreciation, capital/profits), which transfer back to the developer after a preestablished yield or time period is achieved.

Excludes from this provision any real property owned by the legal entity other than the active solar energy system, which shall be subject to standard change of ownership rules.

States that no state appropriation is made and local agencies shall not be reimbursed for property tax revenues lost under this act; takes effect immediately as a tax levy.