Limit on valuation of real property with abandoned renewable energy equipment

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42-13501. Limit on valuation of real property with abandoned renewable energy equipment

A. The assessed value of a leased portion of real property that qualifies under subsection B of this section is the greater of the total lease payments collected by the real property owner during the tax year or the assessed value of the leased property if it were classified as class two property.

B. The real property must meet all of the following conditions:

1. The real property is being leased by the real property owner to a lessee that maintains renewable energy equipment on the leased real property.

2. The real property owner or any affiliate of the owner has no ownership interest in the lessee or any of its affiliates.

3. The lessee is in default on the lease, is not making lease payments under the lease and has abandoned its renewable energy equipment on the leased real property.

4. The leased real property was classified as class two agricultural property for the tax year before the lease term commenced.

5. The total lease payments collected by the real property owner under the lease in default are less than the assessed value of the leased real property under class one.


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