SB 803 — Property taxation.

Summary

(1) Existing law requires the state or any local government entity, when entering into a written contract with a private party whereby a possessory interest subject to property taxation may be created, to include, or cause to be included, in that contract a statement that the property interest may be subject to property taxation if created, and that the party in whom the possessory interest is vested may be subject to the payment of property taxes levied on the interest. Existing law requires a lease of real property that is owned by a state retirement system to provide, for purposes of property taxation, that the full cash value of the possessory interest created by the lease shall be the greater of either the full cash value of the possessory interest or, if the lease covers less than the entire real property, the lessee's allocable share of the full cash value that would be determined for that real property if it were subject to tax. This bill would delete those provisions relating to the full cash value of the possessory interest created by the aforementioned lease and would instead specify that the lease be valued in accordance with a specific regulation in effect on January 1, 2015, for the valuation of taxable possessory interests. (2) 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, among other things, the appraised value of that real property when a change in ownership has occurred. Existing property tax law provides that specified transfers are not deemed a change in ownership for which a claim is filed, as provided. The California Constitution and existing property tax law exclude from a "change in ownership" real property transfers of a principal residence and the first $1,000,000 of the value of other real property between parents and their children, as defined by the Legislature. For the purposes of these provisions, existing property tax law defines "real property" to include, among other things, an interest in a unit or lot within a cooperative housing corporation, as defined. Existing property tax law requires the parties to a parent-child transfer of real property under these provisions to make specified written certifications under penalty of perjury. This bill would specify that, for the purposes of the parent-child principal residence exclusion, "real property" also includes a pro rata ownership interest in a mobilehome park and a pro rata interest in a floating home marina, as those terms are defined. By changing the manner in which local assessors assess property for purposes of the parent-child principal residence exclusion, and by expanding the crime of perjury by requiring that certain information required be verified under oath, this bill would impose a state-mandated local program. (3) The California Constitution and existing property tax law exclude from a "change in ownership" the acquisition of real property as a replacement for property from which the person has been displaced by eminent domain proceedings, acquisition by a public entity, or judgment of inverse condemnation. Existing property tax law requires the person acquiring replacement property on and after January 1, 1983, to request assessment within 4 years of the date that the property was acquired by these means. This bill would specify that an above-described request for assessment made following this 4-year period applies commencing with the lien date of an assessment year in which the request is made. The bill would limit the refund or cancellation of taxes prior to the date the request is made to the lien dates for the last 4 fiscal years with appropriate roll corrections, refunds, or cancellations. The bill would also require the assessor, in granting an assessment under these provisions, to adjust the base year value of the replacement property and make adjustments, as specified. By adding to the duties of county assessors with respect to assessing these replacement properties, this bill would impose a state-mandated local program. (4) Existing law requires the county assessor to assess all property that is subject to taxation at its full value. Existing law establishes, for any of the 1984–85 to 2015–16 tax years, inclusive, a rebuttable presumption in favor of a full cash value assessment for an intercounty pipeline right-of-way, provided that certain specified valuation standards are met in determining that assessed value. Existing law prohibits the county from imposing any late payment penalty or interest if payment of any taxes due upon the valuation of intercounty pipeline rights-of-way is made within 45 days of demand by the tax collector for payment. Existing law requires taxes not paid within 45 days of demand by the tax collector to become delinquent at that time, and requires delinquent penalty, redemption penalty, or other collection procedures to apply. This bill would instead require, if the tax remains unpaid at the time set for the declaration of default for delinquent taxes, the tax together with any penalty and costs as may have accrued on the secured roll to be transferred to the unsecured roll. This bill would also extend the application of this rebuttable presumption through the 2020–21 fiscal year. By imposing new duties upon local tax officials with respect to the collection of unpaid taxes for intercounty pipeline rights-of-way, this bill would impose a state-mandated local program. (5) Existing law establishes the California Land Conservation Act of 1965, otherwise known as the Williamson Act, and authorizes a city or county to enter into a contract with an owner of land devoted to agricultural use, whereby the owner agrees to continue using the property for that purpose, and the city or county agrees to value the land accordingly for purposes of property taxation, as specified. Existing law authorizes a city or county to allow land subject to a Williamson Act contract to be assessed pursuant to specified formulas consistent with the restrictions on the land. This bill would modify these provisions to clarify or correct cross-references relating to the valuation of prime agricultural land and land that is devoted to open-space uses of statewide significance. (6) Existing property tax law requires a transferee of real property or a manufactured home that is locally assessed to file a change in ownership statement, as specified, with the county in which the property or manufactured home is located and declare the information true under penalty of perjury. If a county assessor makes a written request to a transferee to file a change in ownership statement and the transferee fails to do so within specified time periods, existing law imposes a penalty on the transferee equal to the greater of either $100 or 10% of the property taxes due on the property, but not to exceed $5,000, if the property is eligible for the homeowners' exemption, or $20,000, if the property is not eligible for the homeowner's exemption, and the failure was not willful. This bill would extend these provisions to apply to a change of ownership of a floating home, as specified. By expanding the crime of perjury with respect to the change in ownership statement, this bill would impose a state-mandated local program. (7) Existing property tax law requires the tax collector to publish a notice on or before the day when taxes are payable including specified information related to the payment of the property tax on the secured roll. This bill would clarify that the notice should be published on or before November 1 of each year, the day upon which 12 the taxes on real property, and all taxes on personal property, on the secured roll, are due and payable. (8) Existing property tax law generally authorizes a county tax collector to sell tax-defaulted property 5 years or more, or 3 years or more, as applicable, after that property has become tax defaulted. Existing property tax law provides that a defense based on the alleged invalidity or irregularity of any sale of tax-defaulted property can be maintained only in a proceeding commenced within one year after the date of execution of the tax collector's deed. This bill would instead provide that a defense, as described above, can be maintained only in a proceeding commenced within one year after the date of execution of the tax collector's deed or within one year of the date the board of supervisors determines that a tax deed that was sold should not be rescinded, whichever is later. (9) 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 with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (10) Section 2229 of the Revenue and Taxation Code requires the Legislature 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 Section 2229 of the Revenue and Taxation Code, 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 10/02/15 - Chaptered Current pdf October 02, 2015
• Enrolled 09/03/15 - Enrolled pdf September 03, 2015
• Amended 07/15/15 - Amended Assembly pdf July 15, 2015
• Amended 06/29/15 - Amended Assembly pdf June 29, 2015
• Introduced 03/24/15 - Introduced pdf March 24, 2015
• SB803 View text html

Action History

1. October 02, 2015

   Chaptered by Secretary of State. Chapter 454, Statutes of 2015.

2. October 02, 2015

   Approved by the Governor.

3. September 08, 2015

   Enrolled and presented to the Governor at 4:30 p.m.

4. September 02, 2015

   Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2426.) Ordered to engrossing and enrolling.

5. September 01, 2015

   In Senate. Concurrence in Assembly amendments pending.

6. September 01, 2015

   Read third time. Passed. (Ayes 80. Noes 0. Page 2751.) Ordered to the Senate.

7. August 27, 2015

   Read second time. Ordered to consent calendar.

8. August 26, 2015

   From committee: Do pass. Ordered to consent calendar. (Ayes 17. Noes 0.) (August 26).

9. July 15, 2015

   Read second time and amended. Re-referred to Com. on APPR.

10. July 14, 2015

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (July 13).

11. June 29, 2015

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

12. June 24, 2015

    June 29 set for first hearing canceled at the request of author.

13. June 18, 2015

    Referred to Com. on REV. & TAX.

14. May 18, 2015

    In Assembly. Read first time. Held at Desk.

15. May 18, 2015

    Read third time. Passed. (Ayes 36. Noes 0. Page 1029.) Ordered to the Assembly.

16. May 12, 2015

    Read second time. Ordered to consent calendar.

17. May 11, 2015

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

18. May 05, 2015

    Set for hearing May 11.

19. April 29, 2015

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 6. Noes 0. Page 816.) (April 29). Re-referred to Com. on APPR.

20. April 21, 2015

    Set for hearing April 29.

21. April 07, 2015

    Referred to Com. on GOV. & F.

22. March 25, 2015

    From printer. May be acted upon on or after April 24.

23. March 24, 2015

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Committee on Governance and Finance · Primary

Votes

Subjects