A BILL TO BE ENTITLED
AN ACT to phase out the solar energy electric system property tax exclusion and require the property tax revenue be used for schools.
The General Assembly of North Carolina enacts:
SECTION 1.  Effective for taxes imposed for taxable years beginning on or after July 1, 2018, G.S. 105‑275(45) reads as rewritten:
"(45)	Eighty percent (80%) of the appraised value of a solar energy electric system used for residential use, and sixty percent (60%) of the appraised value of a solar energy electric system used for nonresidential use. For purposes of this subdivision, the term "solar energy electric system" means all equipment used directly and exclusively for the conversion of solar energy to electricity."
SECTION 2.  Effective for taxes imposed for taxable years beginning on or after July 1, 2019, G.S. 105‑275(45), as amended by Section 1 of this act, reads as rewritten:
"(45)	Eighty percent (80%) of the appraised value of a solar energy electric system used for residential use, and forty percent (40%) of the appraised value of a solar energy electric system used for non‑residential use. For purposes of this subdivision, the term "solar energy electric system" means all equipment used directly and exclusively for the conversion of solar energy to electricity."
SECTION 3.  Effective for taxes imposed for taxable years beginning on or after July 1, 2020, G.S. 105‑275(45), as amended by Section 2 of this act, reads as rewritten:
"(45)	Eighty percent (80%) of the appraised value of a solar energy electric system used for residential use, and twenty percent (20%) of the appraised value of a solar energy electric system used for non‑residential use. For purposes of this subdivision, the term "solar energy electric system" means all equipment used directly and exclusively for the conversion of solar energy to electricity."
SECTION 4.  Effective for taxes imposed for taxable years beginning on or after July 1, 2021, G.S. 105‑275(45), as amended by Section 3 of this act, reads as rewritten:
"(45)	Eighty percent (80%) of the appraised value of a solar energy electric system used for residential use. For purposes of this subdivision, the term "solar energy electric system" means all equipment used directly and exclusively for the conversion of solar energy to electricity."
SECTION 5.  G.S. 153A‑149 is amended by adding a new subsection to read:
"(b1)	Each county shall calculate the tax expenditure of G.S. 105‑275(45) for solar energy electric systems used for nonresidential use at the percentage provided in that subdivision and at eighty percent (80%) and shall use the difference between the two calculations for construction of and repairs and renovations to public school property and facilities, including measures taken to improve or harden school structures for safety purposes, and associated debt service."
SECTION 6.  Effective for taxes imposed for taxable years beginning on or after July 1, 2021, G.S. 153A‑149(b1), as enacted by Section 5 of this act, reads as rewritten:
"(b1)	Each county shall calculate the tax revenue generated on solar energy electric systems used for nonresidential use and shall use the revenue for construction of and repairs and renovations to public school property and facilities, including measures taken to improve or harden school structures for safety purposes, and associated debt service."
SECTION 7.  There is appropriated from the General Fund to the Department of Revenue the sum of fifty thousand dollars ($50,000) in nonrecurring funds for the 2018‑2019 fiscal year. The Department shall use the funds appropriated in this section to study the number of solar energy electric systems affected by the tax changes implemented by this act and the additional revenue resulting to each county for each year the rate of the exemption changes. The Department shall report its findings to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources no later than January 1, 2019, regarding the information required by this section.
SECTION 8.  Except as otherwise provided, this act becomes effective July 1, 2018.