AB 652 — Property taxation: base year value: new construction.

Summary

(1) The California Constitution generally limits the maximum amount of any ad valorem tax on real property to 1% of its full cash value and defines "full cash value" for these purposes as the county assessor's valuation of real property as shown on the 1975–76 tax bill under "full cash value" or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. Existing property tax law requires the assessor to determine a new base year value for the portion of any taxable real property which has been newly constructed and that new construction in progress on the lien date be appraised at its full value on that date, and each lien date thereafter, until construction is completed, at which time the entire portion of property which is newly constructed is reappraised at its full value. This bill would instead prohibit new construction that is in progress from acquiring a new base year value until the date of completion. (2) Existing property tax law prescribes procedures by which a taxpayer may seek a reduction in assessment from the county board of equalization or assessment appeals board or, in the case of certain publicly owned property, the State Board of Equalization, including deadlines for filing an application. Existing property tax law provides that an application for reduction in the base year value of an assessment on the current local roll may be filed during the regular filing period for that year, as provided and subject to certain limitations, including that the base year value determined in accordance with specified law is conclusively presumed to be the base year value unless the application is filed during the regular equalization period for the year in which the assessment is placed on the assessment roll or in any of the 3 succeeding years. This bill would authorize an application for reduction in the value of new construction that is in progress on the lien date on the current roll to be filed during the regular filing period for that year, as provided. The bill would authorize an application for reduction in the base year value determined upon completion of new construction to be filed during the regular equalization period for the year in which the assessment is placed on the assessment roll or in any of the 3 succeeding years. (3) Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. (4) By changing the manner in which assessors determine the base year value for new construction in progress, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (5) This bill would take effect immediately as a tax levy.

Bill Text

• Chaptered 07/21/17 - Chaptered Current pdf July 21, 2017
• Enrolled 07/06/17 - Enrolled pdf July 06, 2017
• Amended 04/03/17 - Amended Assembly pdf April 03, 2017
• Introduced 02/14/17 - Introduced pdf February 14, 2017
• AB652 View text html

Action History

1. July 21, 2017

   Chaptered by Secretary of State - Chapter 80, Statutes of 2017.

2. July 21, 2017

   Approved by the Governor.

3. July 12, 2017

   Enrolled and presented to the Governor at 11:30 a.m.

4. July 03, 2017

   In Assembly. Ordered to Engrossing and Enrolling.

5. July 03, 2017

   Read third time. Passed. Ordered to the Assembly. (Ayes 33. Noes 0. Page 1842.).

6. June 27, 2017

   Read second time. Ordered to Consent Calendar.

7. June 26, 2017

   From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and ordered to consent calendar.

8. June 07, 2017

   From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (June 7). Re-referred to Com. on APPR.

9. May 18, 2017

   Referred to Com. on GOV. & F.

10. May 04, 2017

    In Senate. Read first time. To Com. on RLS. for assignment.

11. May 04, 2017

    Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 1391.)

12. April 27, 2017

    Read second time. Ordered to Consent Calendar.

13. April 26, 2017

    From committee: Do pass. To Consent Calendar. (Ayes 16. Noes 0.) (April 26).

14. April 18, 2017

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 10. Noes 0.) (April 17). Re-referred to Com. on APPR.

15. April 04, 2017

    Re-referred to Com. on REV. & TAX.

16. April 03, 2017

    From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

17. March 20, 2017

    In committee: Set, first hearing. Hearing canceled at the request of author.

18. March 02, 2017

    Referred to Com. on REV. & TAX.

19. February 15, 2017

    From printer. May be heard in committee March 17.

20. February 14, 2017

    Read first time. To print.

Sponsors

• Heath Flora · Primary

Votes

Subjects