AB 885 — Property taxation: new construction: definition.

Summary

The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, "full cash value" is defined as the assessor's valuation of real property as shown on the 1975–76 tax bill under "full cash value" or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. Existing law defines "newly constructed" and "new construction" to mean any addition to real property since the last lien date and any alteration of land or of any improvement since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use. Existing law, where real property has been damaged or destroyed by misfortune or calamity, excludes from the definition of "newly constructed" and "new construction" any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. This bill would define the term "substantially equivalent" for purposes of the provisions described above to mean the size of the improvement after reconstruction does not exceed 120% of the size of the improvement prior to damage or destruction or the full cash value of the improvement after reconstruction does not exceed 120% of the full cash value of the improvement prior to damage or destruction. The bill would apply this definition to real property damaged or destroyed by misfortune or calamity on or after January 1, 2017. By imposing new duties upon local government officials, this bill would impose a state-mandated local program. This bill would make legislative findings and declarations regarding the public purpose served by the bill. 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. 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.

Bill Text

• Enrolled 09/11/19 - Enrolled Current pdf September 11, 2019
• Amended 08/30/19 - Amended Senate pdf August 30, 2019
• Introduced 02/20/19 - Introduced pdf February 20, 2019
• AB885 View text html

Action History

1. January 21, 2020

   Consideration of Governor's veto stricken from file.

2. October 13, 2019

   Vetoed by Governor.

3. September 13, 2019

   Enrolled and presented to the Governor at 3:30 p.m.

4. September 09, 2019

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 3102.).

5. September 05, 2019

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 7 pursuant to Assembly Rule 77.

6. September 04, 2019

   Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2493.).

7. September 03, 2019

   Read second time. Ordered to third reading.

8. August 30, 2019

   Read second time and amended. Ordered returned to second reading.

9. August 30, 2019

   From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 30).

10. June 24, 2019

    In committee: Referred to APPR. suspense file.

11. June 12, 2019

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 12). Re-referred to Com. on APPR.

12. May 29, 2019

    Referred to Com. on GOV. & F.

13. May 23, 2019

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

14. May 22, 2019

    Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1819.)

15. May 20, 2019

    Read second time. Ordered to third reading.

16. May 16, 2019

    From committee: Do pass. (Ayes 18. Noes 0.) (May 16).

17. April 24, 2019

    In committee: Set, first hearing. Referred to APPR. suspense file.

18. April 09, 2019

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (April 8). Re-referred to Com. on APPR.

19. March 25, 2019

    In committee: Hearing for testimony only.

20. March 04, 2019

    Referred to Com. on REV. & TAX.

21. February 21, 2019

    From printer. May be heard in committee March 23.

22. February 20, 2019

    Read first time. To print.

Sponsors

• Jacqui Irwin · Primary
• Tasha Boerner · Cosponsor
• Jesse Gabriel · Cosponsor
• Maienschein · Cosponsor
• Cottie Petrie-Norris · Cosponsor
• Smith · Cosponsor
• Wood · Cosponsor
• Anna M. Caballero · Cosponsor
• Dodd · Cosponsor
• Nielsen · Cosponsor
• Henry I. Stern · Cosponsor

Votes

Subjects