PACE is Missing in Taxes

PACE is Missing in Taxes

Fri, 04/28/2017 - 3:27pm

Q: If a property owner has solar and it is financed through mPower (PACE Program - Property Assessed Clean Energy) in Placer County, repayment of which will be included with their property taxes, why is the additional amount they pay in their taxes not showing up on the title company preliminary report?

A: Great question! It depends on the time of year and if the tax bill has already been issued. In California, annual property tax bills are typically issued between late September and the end of October, depending on the county, and are due and payable as of November 1st. The additional assessment for clean energy improvements funded through a PACE program may not appear on the bill because the annual property tax bill is generated one time per year. For example, if the owner purchased solar through mPower (a PACE program) in January 2017, their existing tax bill in January 2017 was issued in 2016, so will not reflect their additional monthly assessment until the next time the bill is generated (in around October 2017). When the title report is prepared, it reflects the most recent fiscal year's tax bill issued by the tax collector. Luckily, the PACE program also requires that a “Payment of Contractual Assessment Required” (or similarly titled document) be recorded with the County Recorder which makes it public record the assessment exists.

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