Energy Digest: State moves to tax plants

(Published June 21, 2001)

In a move aimed at squeezing more tax revenue from large in-state power generators, the state Board of Equalization on Wednesday edged closer to stripping local governments of their authority to tax power plants.

State Controller Kathleen Connell, a member of the board, proposed that the state take over the assessments.

The amount local governments may assess power plants is limited by Proposition 13, but the state is able to place higher values on the properties.

Supporters of the move say the state could collect $70 million to $100 million more than local governments.

But the board's staff, while acknowledging that the state could extract more from power plants than local governments during the current energy crisis, said it is unclear what would happen to the price of power and value of power plants in the future.

Local governments, worried that the new assessment system could shortchange their revenues, opposed the move. But the board, which voted unanimously to give the plan tentative approval, said the Legislature intends to distribute the power plant money as though it were taxed locally.

Plants producing fewer than 50 megawatts and co-generation facilities would be exempted from the rule change. The bill closely resembles AB 81 by Assemblywoman Carole Migden, D-San Francisco, which has been approved by the Assembly and awaits Senate action.

--Bee Capitol Bureau

http://www.capitolalert.com/news/capalert02_20010621.html

-- Cave Man (caves@are.us), June 21, 2001

Answers

"The amount local governments may assess power plants is limited by Proposition 13, but the state is able to place higher values on the properties."

The camel has its nose under the tent.

-- Cave Man (caves@are.us), June 21, 2001.

This hurts. Kathleen was the one democrat I voted for. Shudda known better.

It's the same old crap. Bigger more centralized government at the expense of local supervision and choice.

-- Carlos (riffraff@cybertime.net), June 21, 2001.

Carlos,

My sincere condolences.

I didn't realize that you lived in the People's Republic of California.

-- J (Y2J@home.comm), June 21, 2001.