AB 2013 — Property taxation: new construction: damaged or destroyed property.

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. Existing law, pursuant to the authorization of the California Constitution, authorizes the transfer of the base year value of property that is substantially damaged or destroyed by a disaster, as declared by the Governor, to comparable replacement property within the same county that is acquired or newly constructed within 5 years after the disaster, as provided. This bill would authorize the owner of property substantially damaged or destroyed by a disaster, as declared by the Governor, to apply the base year value of that property to replacement property reconstructed on the same site of the damaged or destroyed property within 5 years after the disaster if the reconstructed property is comparable to the substantially damaged or destroyed property, determined as provided. The bill would specify that property is substantially damaged or destroyed for these purposes if the improvements sustain physical damage amounting to more than 50% of the improvements' full cash value immediately prior to the disaster. The bill would provide that person who owns substantially damaged or destroyed property that receives property tax relief under these provisions is not eligible to transfer the base year value of that property to a comparable replacement property, as described above. Under the bill, the adjusted base year value of the original property substantially damaged or destroyed would apply to the reconstructed property if the full cash value of the reconstructed property does not exceed 120% of the full cash value of the original property immediately prior to its substantial damage or destruction. If the full cash value of the reconstructed property exceeds 120% of the full cash value of the original property, the bill would require that the base year value of the reconstructed property be the sum of the full cash value that exceeds 120% of the full cash value of the original property plus the adjusted base year value of the original property. The bill would apply these provisions to real property damaged or destroyed by misfortune or calamity on or after January 1, 2017. By imposing new duties on county assessors with respect to assessing reconstructed property that has been substantially damaged or destroyed by a disaster, 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

• Chaptered 09/24/20 - Chaptered Current pdf September 24, 2020
• Enrolled 09/01/20 - Enrolled pdf September 01, 2020
• Amended 08/07/20 - Amended Senate pdf August 07, 2020
• Amended 05/11/20 - Amended Assembly pdf May 11, 2020
• Introduced 01/29/20 - Introduced pdf January 29, 2020
• AB2013 View text html

Action History

1. September 24, 2020

   Chaptered by Secretary of State - Chapter 124, Statutes of 2020.

2. September 24, 2020

   Approved by the Governor.

3. September 10, 2020

   Enrolled and presented to the Governor at 2:30 p.m.

4. August 30, 2020

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0. Page 5324.).

5. August 28, 2020

   In Assembly. Concurrence in Senate amendments pending.

6. August 28, 2020

   Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 4381.).

7. August 25, 2020

   Ordered to special consent calendar.

8. August 20, 2020

   Read second time. Ordered to third reading.

9. August 20, 2020

   From committee: Do pass. (Ayes 7. Noes 0.) (August 20).

10. August 13, 2020

    In committee: Referred to APPR. suspense file.

11. August 07, 2020

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

12. July 30, 2020

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (July 29). Re-referred to Com. on APPR.

13. June 23, 2020

    Referred to Com. on GOV. & F.

14. June 09, 2020

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

15. June 08, 2020

    Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 4699.)

16. June 04, 2020

    Read second time. Ordered to third reading.

17. June 03, 2020

    From committee: Do pass. (Ayes 18. Noes 0.) (June 3).

18. June 02, 2020

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

19. May 18, 2020

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (May 18). Re-referred to Com. on APPR.

20. May 12, 2020

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

21. May 11, 2020

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

22. March 09, 2020

    In committee: Hearing for testimony only.

23. February 14, 2020

    Referred to Com. on REV. & TAX.

24. January 30, 2020

    From printer. May be heard in committee February 29.

25. January 29, 2020

    Read first time. To print.

Sponsors

• Jacqui Irwin · Primary
• Nielsen · Cosponsor

Votes

Subjects