ACA 11 — A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by adding Sections 2.1, 2.2, and 2.3 to Article XIIIA thereof, relating to tax limitation.

Summary

The California Constitution limits the amount of ad valorem taxes on real property to 1% of the full cash value of that property, defined as the county assessor's valuation of real property as shown on the 1975–76 tax bill and, thereafter, the appraised value of the property when purchased, newly constructed, or a change in ownership occurs after the 1975 assessment, subject to an annual inflation adjustment not to exceed 2%. The California Constitution authorizes the Legislature to authorize a person over 55 years of age or any severely and permanently disabled person residing in property eligible for the homeowner's exemption to transfer the base year value of that property to a replacement dwelling of equal or lesser value located in the same county, or another county that has adopted an ordinance allowing base years value transfers from other counties, as provided. The California Constitution also provides that the purchase or transfer of the principal residence, and the first $1,000,000 of other real property, of a transferor in the case of a transfer between parents and their children, or between grandparents and their grandchildren if all the parents of those grandchildren are deceased, is not a "purchase" or "change in ownership" for purposes of determining the "full cash value" of property for taxation. This measure, beginning on and after April 1, 2021, would authorize an owner of a primary residence who is over 55 years of age, severely disabled, or a victim of a wildfire or natural disaster, as defined, to transfer the taxable value, defined as the base year value plus inflation adjustments, of their primary residence to a replacement primary residence located anywhere in the state, regardless of the location or value of the replacement primary residence, that is purchased or newly constructed as that person's principal residence within 2 years of the sale of the original primary residence. The measure would limit a person who is over 55 years of age or severely disabled to 3 transfers under these provisions. The measure, beginning on and after February 16, 2021, would exclude from the terms "purchase" and "change in ownership" for purposes of determining the "full cash value" of property the purchase or transfer of a family home or family farm, as those terms are defined, of the transferor in the case of a transfer between parents and their children, or between grandparents and their grandchildren if all the parents of those grandchildren are deceased. In the case of a transfer of a family home, the measure would require that the property continue as the family home of the transferee. The measure would require that the taxable value of the property be determined as provided. In the case of property tax benefits provided to a family home under these provisions, the bill would require the transferee to claim the homeowner's or disabled veteran's exemption within one year of the transfer. The measure would specify that the above-described provisions relating to transfers between parents or grandparents and children or grandchildren would apply to transfers occurring on or before February 15, 2021. The measure would establish the California Fire Response Fund in the State Treasury. The measure would require the Controller to annually transfer a specified amount, based on calculations by the Director of Finance, of the additional revenues and savings that accrued to the state from the implementation of this measure's provisions from the General Fund to that fund. However, the measure would provide that, if the amount required to be transferred to the California Fire Response Fund exceeds the amount transferred for the previous fiscal year by more than 10%, that excess amount would not be transferred to the California Fire Response Fund. The measure would require the Legislature to appropriate moneys in the fund solely for the purpose of funding fire suppression staffing by the Department of Forestry and Fire Protection and underfunded special districts that provide fire protection services, as provided. The measure would also establish the County Revenue Protection Fund and continuously appropriate moneys in that fund for the purpose of reimbursing eligible local agencies, as provided. The measure would require the Controller to annually transfer a specified amount, based on the above-described calculations by the Director of Finance, from the General Fund to that fund. The measure would require each county to annually determine the gain of the county and any local agency within the county resulting from the implementation of this measure and, if that amount of gain is negative, provide that specified eligible local agencies may receive a reimbursement from the County Revenue Protection Fund. The measure would require the California Department of Tax and Fee Administration to provide a reimbursement to each eligible local agency that has a negative gain, determined every 3 years based on the aggregate gain of the eligible local agency, as provided, and require the Controller to transfer any remaining balance in the County Revenue Protection Fund to the General Fund at the end of each 3-year period, to be available for appropriation for any purpose.

Bill Text

• Chaptered 07/01/20 - Chaptered Current pdf July 01, 2020
• Enrolled 06/29/20 - Enrolled pdf June 29, 2020
• Amended 06/20/20 - Amended Senate pdf June 20, 2020
• Amended 02/20/20 - Amended Senate pdf February 20, 2020
• Introduced 02/26/19 - Introduced pdf February 26, 2019
• ACA11 View text html

Action History

1. July 01, 2020

   Chaptered by Secretary of State - Res. Chapter 31, Statutes of 2020.

2. July 01, 2020

   Enrolled and filed with the Secretary of State at 2 p.m.

3. June 26, 2020

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 56. Noes 5. Page 4976.).

4. June 26, 2020

   Assembly Rule 77 suspended. (Page 4954.)

5. June 25, 2020

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after June 27 pursuant to Assembly Rule 77.

6. June 25, 2020

   Ordered to the Assembly.

7. June 25, 2020

   Read third time. Adopted. (Ayes 29. Noes 5. Page 3847.)

8. June 25, 2020

   Measure version as amended on June 20 corrected.

9. June 24, 2020

   Measure version as amended on June 20 corrected.

10. June 24, 2020

    Read second time. Ordered to third reading.

11. June 24, 2020

    From committee: Be adopted. (Ayes 5. Noes 2.) (June 24).

12. June 23, 2020

    Measure version as amended on June 20 corrected.

13. June 23, 2020

    From committee: Be adopted, and re-refer to Com. on APPR. Re-referred. (Ayes 4. Noes 1.) (June 23). Re-referred to Com. on APPR.

14. June 22, 2020

    Joint Rules 61 and 62 suspended. (Ayes 29. Noes 10. Page 3799.)

15. June 20, 2020

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

16. February 20, 2020

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

17. August 14, 2019

    From committee: Be adopted, and re-refer to Com. on E. & C.A. Re-referred. (Ayes 18. Noes 0.) (August 14). Re-referred to Com. on E. & C.A.

18. May 16, 2019

    Referred to Coms. on B. & F.R. and E. & C.A.

19. May 06, 2019

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

20. May 06, 2019

    Ordered to the Senate.

21. May 06, 2019

    Read third time. Adopted. (Ayes 76. Noes 0. Page 1517.)

22. April 30, 2019

    Read second time. Ordered to third reading.

23. April 29, 2019

    From committee: Be adopted. (Ayes 27. Noes 0.) (April 29).

24. April 01, 2019

    Referred to Com. on BUDGET.

25. February 27, 2019

    From printer. May be heard in committee March 29.

26. February 26, 2019

    Read first time. To print.

Sponsors

• Mullin · Primary
• Mayes · Cosponsor
• Friedman · Cosponsor
• Burke · Cosponsor
• Gray · Cosponsor
• Atkins · Cosponsor
• Galgiani · Cosponsor
• Hill · Cosponsor
• Cecilia M. Aguiar-Curry · Cosponsor
• Megan Dahle · Cosponsor
• Daly · Cosponsor
• Mike A. Gipson · Cosponsor
• Timothy S. Grayson · Cosponsor
• Ash Kalra · Cosponsor
• Tom Lackey · Cosponsor
• Low · Cosponsor
• Maienschein · Cosponsor
• Medina · Cosponsor
• Robert Rivas · Cosponsor
• Robert Rivas · Cosponsor
• Robert Garcia · Cosponsor
• Robert Garcia · Cosponsor
• Juan Carrillo · Cosponsor
• Lisa Calderon · Cosponsor
• Mia Bonta · Cosponsor
• Blanca E. Rubio · Cosponsor

Votes

Subjects