1. PACE Legislation Implications on Tax Collectors and Tax Lien Investors
#NTLAANNUAL17
PACE Legislation Implications on Tax Collectors and Tax Lien Investors
Hon. Sarah Benatar, Coconino County Treasurer, Arizona
© 2017 National Tax Lien Association

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What is PACE?
PACE: Property Assessed Clean Energy Programs
Residential and Commercial Programs
Loans for improvements on a property
Property owner chooses a capital provider to finance the project and for the capital provider to be repaid through assessments
© 2014 National Tax Lien Association

3. States with PACE Legislation
California
Oregon
Nevada
Utah
Colorado
New Mexico
Texas
Wyoming
Oklahoma
Louisiana
Florida
Georgia
Minnesota
Wisconsin
Michigan
Arkansas
N. Carolina
Virginia
Ohio
Illinois
Maryland
New York
Missouri
New Jersey
Maine
Connecticut
Rhode Island
Massachusetts
Vermont
New Hampshire
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Why it matters?
Workforce Development
Economic Development
Building Stock
Clean Environment
Increase in Assessed Values
Tax Collections and Enforcement
Creates local jobs, lowers cost of doing business, buildings are mainted and upgraded, all which impact local businesses. The environment in a community is improved as well. However, there is an increase in assessed values, specifically for the property. This leads to an increase in taxes, which impacts a taxing district (depends if property is exempt or not). Also, property owners may not have budgeted for the increase in values based on the improvements they make. Tax collection and enforcement issues may arise.
© 2014 National Tax Lien Association

5. Timeline of PACE in Arizona
Arizona currently does not have PACE Legislation
Attempts to bring PACE legislation to Arizona for commercial use for several years
In 2017 draft legislation was created
Proposed legislation for financing water and energy conservation projects on commercial properties
Timeline of PACE in Arizona. This is a priority for City Council in Flagstaff Arizona. After a few years, a constituent with a nonprofit brought PACE to City Council. Fall of 2016 League of Cities and City Council in Flagstaff made PACE a top priority for 2017 legislative session.
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PACE In Arizona
How did PACE come up in Arizona?
Local Government involvement
City Council
County Board of Supervisors
County Treasurers
Legislation expected to be introduced in the legislative session
Continue with timeline and importance of working together on legislative issues. City Council told lead on writing legislation to reach out to Coconino County Supervisors for their support. There was a desire to have Coconino County be the lead. Due to the positive relationship and involvement of elected offices and supervisors, the board of supervisors directed contact be made with the County Treasurer for support. At this point we were able to be actively involved with draft legislation and made our point very clear, we would not be supporting proposed language until our concerns were addressed.
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7. Treasurer Concerns in Arizona
Concerns on how PACE would be implemented in terms of collection and enforcement of funds due
These included:
Treasurer’s responsibility without a say in opting in
Process for collection and distribution of funds
Separation of PACE from general property taxes and special assessments
Nonprofits and other exempt properties
Priority of a PACE lien to a tax lien and other liens
Impact on the properties assessed value
Go into detail on each bullet point
© 2014 National Tax Lien Association

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Get Involved
If PACE is not in your state, it’s only a matter of time until it comes
Whether or not PACE is in your state, you can:
Start the Conversation
Follow Proposed Legislation and Legislative Changes
Reach Out
Voice Concerns
Make the Case
Review of getting involved, share how in Arizona we were able to insert ourselves into the conversation before legislation was introduced to address concerns and issues. Still working on it but it’s easier to change legislation in a draft before it’s introduced than after it’s law
© 2014 National Tax Lien Association

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Questions?
Hon. Sarah Benatar, Coconino County Treasurer
(928)
© 2014 National Tax Lien Association