Proposition 72

Proposition 72:  Rainwater Capture Systems Excluded from Property Tax Assessments - SUPPORT

SUMMARY:

Prop 72 (formerly SCA 9)

Would allow the California State Legislature to exclude rainwater capture systems added to properties after January 1, 2019, from counting as new construction

OVERVIEW:

Current law states when a property owner adds new construction to property, the new construction is assessed for taxable value. Adding a rainwater capture system to one's property counts as a new construction. This measure would allow for the exclusions of rainwater capture systems from the definition of new construction, thus the taxable value of a property would not increase because the property owner added a rainwater capture system. Legislation associated with Proposition 72 would define rainwater capture systems as facilities designed to capture, retain, and store rainwater flowing off rooftops or other manmade aboveground hard surfaces for onsite use. 

The fiscal impact statement determined “probably minor reduction in annual property tax revenues to local governments.” (About $1 million in rainwater capture systems could equal a $10,000 loss in local revenue, according to a BOE estimate.)

Authored by Senator Steve Glazer, the SCA 9 legislation was approved unanimously in the Assembly and Senate.

Support: California Democratic Party, California Building Industry Association, League of California Cities

Opposition: None to date

RECOMMENDATION: SUPPORT

California is in a constant state of drought and conserving water is key to our economic future. Businesses and residents should be incentivized to install these systems to reduce consumption and participate in conservation without paying increased taxes.