Luz Solar Partners Ltd. v. San Bernardino Cnty.

*964 Plaintiffs and appellants Luz Solar Partners Ltd., III; Luz Solar Partners Ltd., IV; Luz Solar Partners Ltd., V; Luz Solar Partners Ltd., VI; Luz Solar Partners Ltd., VII; Luz Solar Partners Ltd., VIII and Harper Lake Company VIII; and Luz Solar Partners Ltd., IX and HLC IX (collectively "Luz Partners") challenge the assessment of real property improved with solar energy generating systems (SEGS units) for tax years 2011-2012 and 2012-2013. They contend that defendants and respondents San Bernardino County (County) and the Assessment Appeals Board of San Bernardino County (Appeals Board) erroneously relied on the State of California Board of Equalization's (Board) incorrect interpretation of the applicable statutes governing the method of assessing the value of the property. Rejecting their contention, we affirm.

I. PROCEDURAL BACKGROUND AND FACTS

In 1980, the Legislature was given "the authority to exclude the construction of certain active solar energy systems from property tax assessment." ( Cal. Const., art. XIIIA, § 2.) As a result, it enacted Revenue and Taxation Code 1 section 73, which excludes newly constructed energy systems from the definition of "new…