SB 1105 Summary

• Creates the "Renewable Energy Facilities Payment in Lieu of Tax Act" to exempt qualified solar energy facilities of at least 1 megawatt from property taxes under the General Property Tax Act.

• Requires facility owners or lessees to make annual payments in lieu of taxes of $4,000 per megawatt of capacity, plus $500 per megawatt-hour for energy storage devices, unless the local assessing authority agrees to a lower amount.

• Establishes a process for owners to apply for exemption certificates through local assessing authorities, with the State Tax Commission issuing certificates effective December 31 (no earlier than December 31, 2022).

• Exemption certificates remain in force until the facility ceases commercial operation, a mutually agreed termination date, or revocation by the local authority for non-payment, and may be transferred to new owners or lessees.

• Requires local tax collecting units to collect and disburse payments in lieu of taxes to state and local taxing authorities in the same proportions as regular property taxes, excluding school funding distributions.