Bill Text: CA SB947 | 2011-2012 | Regular Session | Chaptered
Bill Title: Property taxation.
Spectrum: Slight Partisan Bill (Democrat 6-3)
Status: (Passed) 2011-09-26 - Chaptered by Secretary of State. Chapter 351, Statutes of 2011. [SB947 Detail]
Download: California-2011-SB947-Chaptered.html
BILL NUMBER: SB 947 CHAPTERED
BILL TEXT
CHAPTER 351
FILED WITH SECRETARY OF STATE SEPTEMBER 26, 2011
APPROVED BY GOVERNOR SEPTEMBER 26, 2011
PASSED THE SENATE SEPTEMBER 6, 2011
PASSED THE ASSEMBLY AUGUST 25, 2011
AMENDED IN ASSEMBLY JUNE 29, 2011
AMENDED IN ASSEMBLY JUNE 7, 2011
INTRODUCED BY Committee on Governance and Finance (Senators Wolk
(Chair), DeSaulnier, Fuller, Hancock, Hernandez, Huff, Kehoe, La
Malfa, and Liu)
APRIL 1, 2011
An act to amend Sections 63.1, 69, 69.3, 69.5, 74.5, 74.6, 276.2,
278, 483, 531.1, 830, 862, 1150, 1154, 2821, 4831, 5303, 11551, and
11596 of, to add Section 271.5 to, and to repeal Section 75.23 of,
the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 947, Committee on Governance and Finance. Property taxation.
(1) 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. However, 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. Existing law defines "real
property" to mean the possession of, claim to, ownership of, or right
to possession of land; all mines, minerals, and quarries in the
land; and improvements to the land. However, real property does not
include an interest in a legal entity.
This bill would define real property for purposes of the
parent-child principal residence exclusion to include an interest in
a unit or lot within a cooperative housing corporation, as 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.
(2) The California Constitution and existing property tax law
authorize the base year value of property that is substantially
damaged or destroyed by a disaster, as declared by the Governor, to
be transferred to comparable property within the same county, which
is acquired within 5 years after the disaster, as provided. Existing
property tax law authorizes a county board of supervisors to adopt an
ordinance that authorizes the transfer, subject to specified
conditions and limitations, of the base year value of property that
is located within another county in this state and that has been
substantially damaged or destroyed by a disaster to comparable
replacement property, as provided. Existing property tax law provides
that a property is substantially damaged or destroyed if the land or
the improvements sustain physical damage amounting to more than 50%
of its full cash value immediately prior to the disaster.
This bill would, commencing with the 2012-13 fiscal year, provide
that property is substantially damaged or destroyed if either the
land or the improvements sustain physical damage amounting to more
than 50% of either the land's or the improvement's full cash value
immediately prior to the disaster.
By changing the manner in which local assessors assess property
for purposes of the property tax relief described above, this bill
would impose a state-mandated local program.
(3) The California Constitution and existing property tax law
authorize a person who is either severely disabled or over 55 years
of age to transfer the base year value, as defined, of specified
property to a replacement dwelling located within the same county,
except as otherwise provided, as the property from which the base
year value is transferred if, among other things, the person claiming
the property tax relief is an owner or resident of the original
property at the time when the original property was substantially
damaged or destroyed by misfortune or calamity. Existing property tax
law provides that a property is substantially damaged or destroyed
by misfortune or calamity if it sustains physical damage to more than
50% of its full cash value immediately prior to the damaging event.
This bill would, commencing with the 2012-13 fiscal year, provide
that property is substantially damaged or destroyed by misfortune or
calamity if either the land or improvements sustain physical damage
amounting to more than 50% of the property's full cash value
immediately prior to the misfortune or calamity.
By changing the manner in which local assessors assess property
for purposes of the property tax relief described above, this bill
would impose a state-mandated local program.
(4) Existing property tax law allows a person over the age of 55
years or a severely and permanently disabled person to transfer the
base year value of his or her property, if that property is eligible
for the homeowners' exemption, to any replacement dwelling of equal
or lesser value, as specified. This law requires an owner to notify
the assessor in writing of the completion of new construction to a
replacement dwelling within 30 days of completion.
This bill would extend the amount of time that an owner has to
notify the assessor of the completion of new construction to within 6
months of completion.
(5) Pursuant to an authorization in the California Constitution,
existing property tax law excludes from classification as "newly
constructed" and "new construction" the construction or
reconstruction on that portion of an existing structure of seismic
retrofitting components. Existing property tax law, for purposes of
this exclusion from classification as "newly constructed," provides
that "seismic retrofitting" includes those items referenced in the
Uniform Code for Building Conservation of the International
Conference of Building Officials, and requires "improvements
utilizing earthquake hazard mitigation technologies" to use, among
others, technologies referenced in the Uniform Building Code.
This bill would update obsolete references to the Uniform Code for
Building Conservation of the International Conference of Building
Officials and to the Uniform Building Code, by instead referring to
the International Existing Building Code of the International Code
Council and to the International Building Code.
(6) Pursuant to an authorization in the California Constitution,
existing property tax law excludes from classification as "newly
constructed" and "new construction" the construction, installation,
removal, or modification of a portion or structural component of an
existing building or structure on or after June 7, 1994, to the
extent that it is done for the purpose of making the building more
accessible to, or more usable by, a disabled person.
The bill would make a technical, nonsubstantive change to correct
an obsolete reference.
(7) Existing property tax law specifies, with regard to a
supplemental assessment, that property tax exemptions shall not apply
to a property as of the date of a change in ownership if the
transferee did not otherwise qualify for that exemption on the date
of the change in ownership.
This bill would delete this provision.
(8) Existing property tax law provides for an exemption, as
specified, for property that is used for college, cemetery, church,
religious, exhibition, veterans' organization, tribal housing, or
welfare purposes if certain conditions are met, as specified.
Existing property tax law also provides for an exemption, as
specified, of the home of a disabled veteran, or a veteran's spouse
in the case in which the veteran has, as a result of a
service-connected disease or injury, died while on active duty in
military service, and specifies the termination of this exemption
upon that subject property being transferred to a 3rd party that is
not eligible for that exemption.
This bill would specify the termination of the college, cemetery,
church, religious, exhibition, veterans' organization, tribal
housing, or welfare exemptions upon the subject property being
transferred to a 3rd party that is not eligible for that exemption.
The bill would make related changes.
By changing the manner in which property tax assessments are
administered by county assessors, this bill would impose a
state-mandated local program.
(9) Existing property tax law provides for the disabled veterans'
property tax exemption contingent upon a claim being filed, as
specified. Existing property tax law requires, if property becomes
eligible for the exemption after the lien date and an appropriate
application is filed on or before the lien date in the calendar year
next following the calendar year in which the property became
eligible, the refund or cancellation of taxes on that portion of the
assessed value of the property that would have been exempt under a
timely and appropriate application.
This bill would, instead, require the refund or cancellation of
taxes, if an appropriate application for the exemption is filed on
the later of 90 days after the date on which the property became
eligible or on or before the next following lien date.
(10) Existing property tax law requires the county assessor each
year to mail a notice to all disabled veterans who received the
disabled veterans' property tax exemption in the immediately
preceding year, as specified.
This bill would instead require, prior to the lien date, the
assessor to annually mail a notice to all claimants who received the
disabled veterans' property tax exemption in the immediately
preceding year.
By requiring local officials to additionally provide notice to a
disabled veteran's spouse and an unmarried surviving spouse who
received the disabled veterans' property tax exemption, this bill
would impose a state-mandated local program.
(11) Existing property tax law requires a person or legal entity
to file a change in ownership statement whenever there occurs any
change in ownership of real property or of a manufactured home, as
specified, whenever a person or entity obtains a controlling or
majority ownership interest in a legal entity, or whenever an entity
makes specified transfers of ownership interests in the legal entity.
Existing law imposes a penalty if a person or legal entity required
to file a change in ownership statement fails to do so within a
specified time period from the date of a written request by either
the assessor or the State Board of Equalization, as applicable.
Existing property tax law authorizes the county board of supervisors
to order this penalty abated, if an assessee establishes that the
failure to file a change in ownership statement within a specified
time period was due to reasonable cause and not due to willful
neglect, and the assessee has filed the change in ownership statement
with either the assessor or the State Board of Equalization, as
applicable, and an application for abatement of the penalty with the
county board of supervisors, as provided.
This bill would, instead, authorize the county board of
equalization or the assessment appeals board to order the penalty
abated, and would, instead, require an application for abatement of
the penalty to be filed with the county board of equalization or the
assessment appeals board.
(12) The California Constitution requires the State Board of
Equalization to assess the property, other than franchises, of
specified types of entities. Existing property tax law provides for
the valuation, as a unit, of properties of a state assessee that are
operated as a unit as a primary function of that assessee.
Existing property tax law requires a state assessee, upon the
board's request, and in compliance with the applicable deadlines, to
file a property statement relating to its state-assessed property.
Existing law imposes penalties upon a taxpayer's failure to timely
file a required property statement, including a penalty of 10% of
unitary value with respect to that part of the property statement
relating to the development of the unitary value of operating
property, and a penalty of 10% of the allocated value of property
with respect to that part of the property statement that lists or
describes specific operating property, and requires the imposition of
an additional 25% penalty if the failure to file is a willful or
fraudulent attempt to evade tax. Existing law also imposes an
additional 10% penalty, as specified, upon the failure of a state
assessee to either timely file a property statement or to accurately
report taxable tangible personal property on a property statement, if
that failure requires the board to make a subsequent assessment of
the value of property that escaped assessment, and requires the
imposition of an additional 25% penalty if the failure to file or
report is willful or fraudulent. Existing law authorizes the board to
abate these penalties if the assessee establishes that the failure
to file was due to reasonable cause, but only if the assessee timely
files an application for abatement of the penalty.
This bill would expressly provide for the board to abate the
penalties, as described above, in whole or in part.
(13) Existing property tax law establishes various requirements
and procedures for the assessment of property and the compilation of
the tax assessment rolls. Existing property tax law generally
authorizes the correction, subject to specified time requirements, of
any error that results in an incorrect entry on the property tax
roll, except for, among other things, an error that involves the
exercise of value judgment, but authorizes the correction of any
error or omission involving the exercise of a value judgment that
arises solely from a failure to reflect a decline in taxable value of
real property, as provided.
This bill would extend this authority to correct the roll with
regard to an error or omission involving the exercise of a value
judgment that arises solely from a failure to reflect a decline in
taxable value, to floating homes and manufactured homes, as provided.
(14) The Private Railroad Car Tax Law imposes a tax, computed as
specified, on private railroad cars, as defined, operated in this
state, and is administered by the State Board of Equalization.
Existing law requires the board, once it proposes to make a
determination to grant a refund for the overpayment of that tax of
over $15,000 or a cancellation of amounts due of over $15,000, to
make those proposed determinations available as a public record for a
specified amount of time, as provided.
This bill would raise the threshold for the public record
requirement regarding the State Board of Equalization's
determinations in the above-described circumstances to $50,000.
(15) Existing property tax law requires the personal property of
an aircraft be taxed at its fair market value, and the California
Constitution requires property subject to ad valorem property
taxation to be assessed in the county in which it is situated. This
law defines "certificated aircraft," "air taxi," and "aircraft."
This bill would replace obsolete statutory references to the
"Civil Aeronautics Board of the United States" with the "Federal
Aviation Administration," would delete other obsolete statutory
references to the "California Public Utilities Commission" in these
definitions, and would make other technical, nonsubstantive changes.
(16) Existing property tax law authorizes any person filing an
affidavit of interest to apply to the tax collector to have any
parcel separately valued on the current roll for the purpose of
paying taxes, and requires the application to be made during the
current fiscal year and to set forth specific information describing
the parcel sought to be separately valued. Existing law authorizes a
county, upon approval of the board of supervisors, to prohibit these
applications during the 10 working days preceding each tax
installment delinquency date and during the 10 working days preceding
June 30 of each year.
This bill would instead authorize the county to allow these
applications between July 1 and March 31.
(17) 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.
(18) 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 63.1 of the Revenue and Taxation Code is
amended to read:
63.1. (a) Notwithstanding any other provision of this chapter, a
change in ownership shall not include the following purchases or
transfers for which a claim is filed pursuant to this section:
(1) (A) The purchase or transfer of real property which is the
principal residence of an eligible transferor in the case of a
purchase or transfer between parents and their children.
(B) A purchase or transfer of a principal residence from a foster
child to the child's biological parent shall not be excluded under
subparagraph (A) if the transferor child received that principal
residence, or interest therein, from a foster parent through a
purchase or transfer that was excluded under subparagraph (A).
(2) The purchase or transfer of the first one million dollars
($1,000,000) of full cash value of all other real property of an
eligible transferor in the case of a purchase or transfer between
parents and their children.
(3) (A) Subject to subparagraph (B), the purchase or transfer of
real property described in paragraphs (1) and (2) of subdivision (a)
occurring on or after March 27, 1996, between grandparents and their
grandchild or grandchildren, if all of the parents of that grandchild
or those grandchildren, who qualify as the children of the
grandparents, are deceased as of the date of purchase or transfer.
Notwithstanding any other provision of law, for the lien date for the
2006-07 fiscal year and each fiscal year thereafter, in determining
whether "all of the parents of that grandchild or those
grandchildren, who qualify as the children of the grandparents, are
deceased as of the date of purchase or transfer," a son-in-law or
daughter-in-law of the grandparent that is a stepparent to the
grandchild need not be deceased on the date of the transfer.
(B) A purchase or transfer of a principal residence shall not be
excluded pursuant to subparagraph (A) if the transferee grandchild or
grandchildren also received a principal residence, or interest
therein, through another purchase or transfer that was excludable
pursuant to paragraph (1) of subdivision (a). The full cash value of
any real property, other than a principal residence, that was
transferred to the grandchild or grandchildren pursuant to a purchase
or transfer that was excludable pursuant to paragraph (2) of
subdivision (a) and the full cash value of a principal residence that
fails to qualify for exclusion as a result of the preceding sentence
shall be included in applying, for purposes of paragraph (2) of
subdivision (a), the one million dollar ($1,000,000) full cash value
limit specified in paragraph (2) of subdivision (a).
(b) (1) For purposes of paragraph (1) of subdivision (a),
"principal residence" means a dwelling that is eligible for a
homeowners' exemption or a disabled veterans' exemption as a result
of the transferor's ownership and occupation of the dwelling.
"Principal residence" includes only that portion of the land
underlying the residence that consists of an area of reasonable size
that is used as a site for the residence.
(2) For purposes of paragraph (2) of subdivision (a), the
one-million-dollar ($1,000,000) exclusion shall apply separately to
each eligible transferor with respect to all purchases by and
transfers to eligible transferees on and after November 6, 1986, of
real property, other than the principal residence, of that eligible
transferor. The exclusion shall not apply to any property in which
the eligible transferor's interest was received through a transfer,
or transfers, excluded from change in ownership by the provisions of
either subdivision (f) of Section 62 or subdivision (b) of Section
65, unless the transferor qualifies as an original transferor under
subdivision (b) of Section 65. In the case of any purchase or
transfer subject to this paragraph involving two or more eligible
transferors, the transferors may elect to combine their separate
one-million-dollar ($1,000,000) exclusions and, upon making that
election, the combined amount of their separate exclusions shall
apply to any property jointly sold or transferred by the electing
transferors, provided that in no case shall the amount of full cash
value of real property of any one eligible transferor excluded under
this election exceed the amount of the transferor's separate unused
exclusion on the date of the joint sale or transfer.
(c) As used in this section:
(1) "Purchase or transfer between parents and their children"
means either a transfer from a parent or parents to a child or
children of the parent or parents or a transfer from a child or
children to a parent or parents of the child or children. For
purposes of this section, the date of any transfer between parents
and their children under a will or intestate succession shall be the
date of the decedent's death, if the decedent died on or after
November 6, 1986.
(2) "Purchase or transfer of real property between grandparents
and their grandchild or grandchildren" means a purchase or transfer
on or after March 27, 1996, from a grandparent or grandparents to a
grandchild or grandchildren if all of the parents of that grandchild
or those grandchildren who qualify as the children of the
grandparents are deceased as of the date of the transfer. For
purposes of this section, the date of any transfer between
grandparents and their grandchildren under a will or by intestate
succession shall be the date of the decedent's death. Notwithstanding
any other provision of law, for the lien date for the 2006-07 fiscal
year and each fiscal year thereafter, in determining whether "all of
the parents of that grandchild or those grandchildren, who qualify
as the children of the grandparents, are deceased as of the date of
purchase or transfer," a son-in-law or daughter-in-law of the
grandparent that is a stepparent to the grandchild need not be
deceased on the date of the transfer.
(3) "Children" means any of the following:
(A) Any child born of the parent or parents, except a child, as
defined in subparagraph (D), who has been adopted by another person
or persons.
(B) Any stepchild of the parent or parents and the spouse of that
stepchild while the relationship of stepparent and stepchild exists.
For purposes of this paragraph, the relationship of stepparent and
stepchild shall be deemed to exist until the marriage on which the
relationship is based is terminated by divorce, or, if the
relationship is terminated by death, until the remarriage of the
surviving stepparent.
(C) Any son-in-law or daughter-in-law of the parent or parents.
For the purposes of this paragraph, the relationship of parent and
son-in-law or daughter-in-law shall be deemed to exist until the
marriage on which the relationship is based is terminated by divorce,
or, if the relationship is terminated by death, until the remarriage
of the surviving son-in-law or daughter-in-law.
(D) Any child adopted by the parent or parents pursuant to
statute, other than an individual adopted after reaching the age of
18 years.
(E) Any foster child of a state-licensed foster parent, if that
child was not, because of a legal barrier, adopted by the foster
parent or foster parents before the child aged out of the foster care
system. For purposes of this paragraph, the relationship between a
foster child and foster parent shall be deemed to exist until
terminated by death. However, for purposes of a transfer that occurs
on the date of death, the relationship shall be deemed to exist on
the date of death.
(4) "Grandchild" or "grandchildren" means any child or children of
the child or children of the grandparent or grandparents.
(5) "Full cash value" means full cash value, as defined in Section
2 of Article XIII A of the California Constitution and Section
110.1, with any adjustments authorized by those sections, and the
full value of any new construction in progress, determined as of the
date immediately prior to the date of a purchase by or transfer to an
eligible transferee of real property subject to this section.
(6) "Eligible transferor" means a grandparent, parent, or child of
an eligible transferee.
(7) "Eligible transferee" means a parent, child, or grandchild of
an eligible transferor.
(8) "Real property" means real property as defined in Section 104.
Real property does not include any interest in a legal entity. For
purposes of this section, real property includes an interest in a
unit or lot within a cooperative housing corporation, as defined in
subdivision (i) of Section 61.
(9) "Transfer" includes, and is not limited to, any transfer of
the present beneficial ownership of property from an eligible
transferor to an eligible transferee through the medium of an inter
vivos or testamentary trust.
(10) "Social security number" also includes a taxpayer
identification number issued by the Internal Revenue Service in the
case in which the taxpayer is a foreign national who cannot obtain a
social security number.
(d) (1) The exclusions provided for in subdivision (a) shall not
be allowed unless the eligible transferee, the transferee's legal
representative, the trustee of the transferee's trust, or the
executor or administrator of the transferee's estate files a claim
with the assessor for the exclusion sought and furnishes to the
assessor each of the following:
(A) A written certification by the transferee, the transferee's
legal representative, the trustee of the transferee's trust, or the
executor or administrator of the transferee's estate, signed and made
under penalty of perjury that the transferee is a parent, child, or
grandchild of the transferor and that the transferor is his or her
parent, child, or grandparent. In the case of a
grandparent-grandchild transfer, the written certification shall also
include a certification that all the parents of the grandchild or
grandchildren who qualify as children of the grandparents were
deceased as of the date of the purchase or transfer and that the
grandchild or grandchildren did or did not receive a principal
residence excludable under paragraph (1) of subdivision (a) from the
deceased parents, and that the grandchild or grandchildren did or did
not receive real property other than a principal residence
excludable under paragraph (2) of subdivision (a) from the deceased
parents. The claimant shall provide legal substantiation of any
matter certified pursuant to this subparagraph at the request of the
county assessor.
(B) A written certification by the transferor, the transferor's
legal representative, the trustee of the transferor's trust, or the
executor or administrator of the transferor's estate, signed and made
under penalty of perjury that the transferor is a grandparent,
parent, or child of the transferee and that the transferor is seeking
the exclusion under this section and will not file a claim to
transfer the base year value of the property under Section 69.5.
(C) A written certification shall also include either or both of
the following:
(i) If the purchase or transfer of real property includes the
purchase or transfer of residential real property, a certification
that the residential real property is or is not the transferor's
principal residence.
(ii) If the purchase or transfer of real property includes the
purchase or transfer of real property other than the transferor's
principal residence, a certification that other real property of the
transferor that is subject to this section has or has not been
previously sold or transferred to an eligible transferee, the total
amount of full cash value, as defined in subdivision (c), of any real
property subject to this section that has been previously sold or
transferred by that transferor to eligible transferees, the location
of that real property, the social security number of each eligible
transferor, and the names of the eligible transferees of that
property.
(D) If there are multiple transferees, the certification and
signature may be made by any one of the transferees, if both of the
following conditions are met:
(i) The transferee has actual knowledge that, and the
certification signed by the transferee states that, all of the
transferees are eligible transferees within the meaning of this
section.
(ii) The certification is signed by the transferee as a true
statement made under penalty of perjury.
(E) In the case of a transfer between a foster parent and foster
child, the claim filed with the assessor shall include a certified
copy of the court decision regarding the foster child status of the
individual and a certified statement from the appropriate county
agency stating that the foster child was not, because of a legal
barrier, adopted by the foster parent or foster parents. Upon a
request by the county assessor, the claimant also shall provide to
the assessor legal substantiation of any matter certified under this
subparagraph.
(2) If the full cash value of the real property purchased by or
transferred to the transferee exceeds the permissible exclusion of
the transferor or the combined permissible exclusion of the
transferors, in the case of a purchase or transfer from two or more
joint transferors, taking into account any previous purchases by or
transfers to an eligible transferee from the same transferor or
transferors, the transferee shall specify in his or her claim the
amount and the allocation of the exclusion he or she is seeking.
Within any appraisal unit, as determined in accordance with
subdivision (d) of Section 51 by the assessor of the county in which
the real property is located, the exclusion shall be applied only on
a pro rata basis, however, and shall not be applied to a selected
portion or portions of the appraisal unit.
(e) (1) The State Board of Equalization shall design the form for
claiming eligibility. Except as provided in paragraph (2), any claim
under this section shall be filed:
(A) For transfers of real property between parents and their
children occurring prior to September 30, 1990, within three years
after the date of the purchase or transfer of real property for which
the claim is filed.
(B) For transfers of real property between parents and their
children occurring on or after September 30, 1990, and for the
purchase or transfer of real property between grandparents and their
grandchildren occurring on or after March 27, 1996, within three
years after the date of the purchase or transfer of real property for
which the claim is filed, or prior to transfer of the real property
to a third party, whichever is earlier.
(C) Notwithstanding subparagraphs (A) and (B), a claim shall be
deemed to be timely filed if it is filed within six months after the
date of mailing of a notice of supplemental or escape assessment,
issued as a result of the purchase or transfer of real property for
which the claim is filed.
(2) In the case in which the real property subject to purchase or
transfer has not been transferred to a third party, a claim for
exclusion under this section that is filed subsequent to the
expiration of the filing periods set forth in paragraph (1) shall be
considered by the assessor, subject to all of the following
conditions:
(A) Any exclusion granted pursuant to that claim shall apply
commencing with the lien date of the assessment year in which the
claim is filed.
(B) Under any exclusion granted pursuant to that claim, the
adjusted full cash value of the subject real property in the
assessment year described in subparagraph (A) shall be the adjusted
base year value of the subject real property in the assessment year
in which the excluded purchase or transfer took place, factored to
the assessment year described in subparagraph (A) for both of the
following:
(i) Inflation as annually determined in accordance with paragraph
(1) of subdivision (a) of Section 51.
(ii) Any subsequent new construction occurring with respect to the
subject real property.
(3) (A) Unless otherwise expressly provided, the provisions of
this subdivision shall apply to any purchase or transfer of real
property that occurred on or after November 6, 1986.
(B) Paragraph (2) shall apply to purchases or transfers between
parents and their children that occurred on or after November 6,
1986, and to purchases or transfers between grandparents and their
grandchildren that occurred on or after March 27, 1996.
(4) For purposes of this subdivision, a transfer of real property
to a parent or child of the transferor shall not be considered a
transfer to a third party.
(f) The assessor may report quarterly to the State Board of
Equalization all purchases or transfers, other than purchases or
transfers involving a principal residence, for which a claim for
exclusion is made pursuant to subdivision (d). Each report shall
contain the assessor's parcel number for each parcel for which the
exclusion is claimed, the amount of each exclusion claimed, the
social security number of each eligible transferor, and any other
information the board may require in order to monitor the
one-million-dollar ($1,000,000) limitation in paragraph (2) of
subdivision (a). In recognition of the state and local interests
served by the action made optional in this subdivision, the
Legislature encourages the assessor to continue taking the action
formerly mandated by this subdivision.
(g) This section shall apply to both voluntary transfers and
transfers resulting from a court order or judicial decree. Nothing in
this subdivision shall be construed as conflicting with paragraph
(1) of subdivision (c) or the general principle that transfers by
reason of death occur at the time of death.
(h) (1) Except as provided in paragraph (2), this section shall
apply to purchases and transfers of real property completed on or
after November 6, 1986, and shall not be effective for any change in
ownership, including a change in ownership arising on the date of a
decedent's death, that occurred prior to that date.
(2) This section shall apply to purchases or transfers of real
property between grandparents and their grandchildren occurring on or
after March 27, 1996, and, with respect to purchases or transfers of
real property between grandparents and their grandchildren, shall
not be effective for any change in ownership, including a change in
ownership arising on the date of a decedent's death, that occurred
prior to that date.
(i) A claim filed under this section is not a public document and
is not subject to public inspection, except that a claim shall be
available for inspection by the transferee and the transferor or
their respective spouse, the transferee's legal representative, the
transferor's legal representative, the trustee of the transferee's
trust, the trustee of the transferor's trust, and the executor or
administrator of the transferee's or transferor's estate.
(j) (1) If the assessor notifies the transferee in writing of
potential eligibility for exclusion from change in ownership under
this section, a certified claim for exclusion shall be filed with the
assessor within 45 days of the date of the notice of potential
eligibility. If a certified claim for exclusion is not filed within
45 days, the assessor may send a second notice of potential
eligibility for exclusion, notifying the transferee that a certified
claim for exclusion has not been received and that reassessment of
the property will commence unless a certified claim for exclusion is
filed within 60 days of the date of the second notice of potential
eligibility. The second notice of potential eligibility shall
indicate whether a certified claim for exclusion that is not filed
within 60 days will be subject to a processing fee as provided in
paragraph (2).
(2) If a certified claim for exclusion is not filed within 60 days
of the date of the second notice of potential eligibility and an
eligible transferee subsequently files a claim and qualifies for the
exclusion, the assessor may, upon authorization by a county board of
supervisors, require an eligible transferee to pay a one-time
processing fee, collected at the time the claim is submitted, and
reimbursed by the assessor if the claim is ineligible. The fee shall
be subject to the provisions of Chapter 12.5 (commencing with Section
54985) of Part 1 of Division 2 of Title 5 of the Government Code and
shall not exceed the amount of the actual and reasonable costs
incurred by the assessor for reassessment work done due to failure to
file the claim for exclusion or one hundred seventy-five dollars
($175), whichever is less.
(3) The failure to file a certified claim for exclusion within the
filing periods specified by this subdivision shall not be construed
to limit any exclusion from being granted pursuant to a claim filed
within the filing periods specified by subdivision (e).
SEC. 2. Section 69 of the Revenue and Taxation Code is amended to
read:
69. (a) Notwithstanding any other law, pursuant to Section 2 of
Article XIII A of the Constitution, the base year value of property
that is substantially damaged or destroyed by a disaster, as declared
by the Governor, may be transferred to comparable property within
the same county, which is acquired or newly constructed within five
years after the disaster, including in the case of the Northridge
earthquake, as a replacement for the substantially damaged or
destroyed property. At the time the base year value of the
substantially damaged or destroyed property is transferred to the
replacement property, the substantially damaged or destroyed property
shall be reassessed at its full cash value; however, the
substantially damaged or destroyed property shall retain its base
year value notwithstanding the transfer authorized by this section.
If the owner or owners of substantially damaged or destroyed property
receive property tax relief under this section, that property shall
not be eligible for property tax relief under subdivision (c) of
Section 70 in the event of its reconstruction.
(b) The replacement base year value of the replacement property
acquired shall be determined in accordance with this section.
The assessor shall use the following procedure in determining the
appropriate replacement base year value of comparable replacement
property:
(1) If the full cash value of the comparable replacement property
does not exceed 120 percent of the full cash value of the property
substantially damaged or destroyed, then the adjusted base year value
of the property substantially damaged or destroyed shall be
transferred to the comparable replacement property as its replacement
base year value.
(2) If the full cash value of the replacement property exceeds 120
percent of the full cash value of the property substantially damaged
or destroyed, then the amount of the full cash value over 120
percent of the full cash value of the property substantially damaged
or destroyed shall be added to the adjusted base year value of the
property substantially damaged or destroyed. The sum of these amounts
shall become the replacement property's replacement base year value.
(3) If the full cash value of the comparable replacement property
is less than the adjusted base year value of the property
substantially damaged or destroyed, then that lower value shall
become the replacement property's base year value.
(4) The full cash value of the property substantially damaged or
destroyed shall be the amount of its full cash value immediately
prior to its substantial damage or destruction, as determined by the
county assessor of the county in which the property is located.
(c) For purposes of this section:
(1) Property is substantially damaged or destroyed if either the
land or the improvements sustain physical damage amounting to more
than 50 percent of either the land's or the improvement's full cash
value immediately prior to the disaster. Damage includes a diminution
in the value of property as a result of restricted access to the
property where the restricted access was caused by the disaster and
is permanent in nature.
(2) Replacement property is comparable to the property
substantially damaged or destroyed if it is similar in size, utility,
and function to the property which it replaces.
(A) Property is similar in function if the replacement property is
subject to similar governmental restrictions, such as zoning.
(B) Both the size and utility of property are interrelated and
associated with value. Property is similar in size and utility only
to the extent that the replacement property is, or is intended to be,
used in the same manner as the property substantially damaged or
destroyed and its full cash value does not exceed 120 percent of the
full cash value of the property substantially damaged or destroyed.
(i) A replacement property or any portion thereof used or intended
to be used for a purpose substantially different than the use made
of the property substantially damaged or destroyed shall to the
extent of the dissimilar use be considered not similar in utility.
(ii) A replacement property or portion thereof that satisfies the
use requirement but has a full cash value that exceeds 120 percent of
the full cash value of the property substantially damaged or
destroyed shall be considered, to the extent of the excess, not
similar in utility and size.
(C) To the extent that replacement property, or any portion
thereof, is not similar in function, size, and utility, the property,
or portion thereof, shall be considered to have undergone a change
in ownership when the replacement property is acquired or newly
constructed.
(3) "Disaster" means a major misfortune or calamity in an area
subsequently proclaimed by the Governor to be in a state of disaster
as a result of the misfortune or calamity.
(d) (1) This section applies to any comparable replacement
property acquired or newly constructed on or after July 1, 1985.
(2) The amendments made by Chapter 1053 of the Statutes of 1993
apply to any comparable replacement property that is acquired or
newly constructed as a replacement for property substantially damaged
or destroyed by a disaster occurring on or after October 20, 1991,
and to the determination of base year values for the 1991-92 fiscal
year and fiscal years thereafter.
(3) The amendments made by Chapter 317 of the Statutes of 2006
apply to any comparable replacement property that is acquired or
newly constructed as a replacement for property substantially damaged
or destroyed by a disaster occurring on or after July 1, 2003, and
to the determination of base year values for the 2003-04 fiscal year
and fiscal years thereafter.
(e) Only the owner or owners of the property
substantially damaged or destroyed, whether one or more individuals,
partnerships, corporations, other legal entities, or a combination
thereof, shall receive property tax relief under this section. Relief
under this section shall be granted to an owner or owners of
substantially damaged or destroyed property obtaining title to
replacement property. The acquisition of an ownership interest in a
legal entity, which directly or indirectly owns real property, is not
an acquisition of comparable property.
(f) Notwithstanding any other law, the board of supervisors of the
County of San Diego may by ordinance extend the time period
specified in subdivision (a) to transfer the base year value of
property that is substantially damaged or destroyed by the Cedar Fire
that commenced in October 2003, as declared by the Governor, to
comparable property within the same county that is acquired or newly
constructed as a replacement for the substantially damaged or
destroyed property by two years. This subdivision shall apply to the
determination of base year values for the 2003-04 fiscal year and
fiscal years thereafter.
(g) The amendments made to this section by the act adding this
subdivision shall apply commencing with the lien date for the 2012-13
fiscal year.
SEC. 3. Section 69.3 of the Revenue and Taxation Code is amended
to read:
69.3. (a) (1) Notwithstanding any other law, pursuant to the
authority of paragraph (3) of subdivision (e) of Section 2 of Article
XIII A of the California Constitution, a county board of
supervisors, after consultation with affected local agencies located
within the boundaries of the county, may adopt an ordinance that
authorizes the transfer, subject to the conditions and limitations of
this section, of the base year value of real property that is
located within another county in this state and has been
substantially damaged or destroyed by a disaster to comparable
replacement property, including land, of equal or lesser value that
is located within the adopting county and has been acquired or newly
constructed as a replacement for the damaged or destroyed property
within three years after the damage or destruction of the original
property.
(2) The base year value of the original property shall be the base
year value of the original property as determined in accordance with
Section 110.1, with the inflation factor adjustments permitted by
subdivision (f) of Section 110.1, determined as of the date
immediately prior to the date that the original property was
substantially damaged or destroyed. The base year value of the
original property shall also include any inflation factor adjustments
permitted by subdivision (f) of Section 110.1 for the period
subsequent to the date of the substantial damage to, or destruction
of, the original property and up to the date the replacement property
is acquired or newly constructed, regardless of whether the claimant
continued to own the original property during this entire period.
The base year or years used to compute the base year value of the
original property shall be deemed to be the base year or years of any
property to which that base year value is transferred pursuant to
this section.
(b) For purposes of this section:
(1) "Affected local agency" means any city, special district,
school district, or community college district that receives an
annual allocation of ad valorem property tax revenues.
(2) "Claimant" means an owner or owners of real property claiming
the property tax relief provided by this section.
(3) "Comparable replacement property" means a replacement property
that has a full cash value of equal or lesser value as defined in
paragraph (6).
(4) "Consultation" means a noticed hearing that is conducted by a
county board of supervisors concerning the adoption of an ordinance
described in subdivision (a) and with respect to which all affected
local agencies within the boundaries of the county are provided with
reasonable notice of the time and the place of the hearing and a
reasonable opportunity to appear and participate.
(5) "Disaster" means a major misfortune or calamity in an area
subsequently proclaimed by the Governor to be in a state of disaster
as a result of the misfortune or calamity.
(6) "Equal or lesser value" means that the amount of the full cash
value of the replacement property does not exceed one of the
following:
(A) One hundred five percent of the amount of the full cash value
of the original property if the replacement property is purchased or
newly constructed within the first year following the date of the
damage or destruction of the original property.
(B) One hundred ten percent of the amount of the full cash value
of the original property if the replacement property is purchased or
newly constructed within the second year following the date of the
damage or destruction of the original property.
(C) One hundred fifteen percent of the amount of the full cash
value of the original property if the replacement property is
purchased or newly constructed within the third year following the
date of the damage or destruction of the original property.
For purposes of this paragraph, if the replacement property is, in
part, purchased and, in part, newly constructed, the date the
"replacement property is purchased or newly constructed" is the date
of the purchase or the date of completion of new construction,
whichever is later.
(7) "Full cash value of the original property" means its full cash
value, as determined in accordance with Section 110, immediately
prior to its substantial damage or destruction, as determined by the
county assessor of the county in which the property is located.
(8) "Full cash value of the replacement property" means its full
cash value, as determined in accordance with Section 110.1 as of the
date upon which it was purchased or new construction was completed,
that is applicable on and after that date.
(9) "Original property" means a building, structure, or other
shelter constituting a place of abode, whether real property or
personal property, that is owned and occupied by a claimant as his or
her principal place of residence, and any land owned by the claimant
on which the building, structure, or other shelter is situated, that
has been substantially damaged or destroyed by a disaster. For
purposes of this paragraph, land constituting a part of original
property includes only that area of reasonable size that is used as a
site for a residence, and "land owned by the claimant" includes land
for which the claimant either holds a leasehold interest described
in subdivision (c) of Section 61 or a land purchase contract. For
purposes of this paragraph, each unit of a multiunit dwelling shall
be considered a separate original property.
(10) "Owner or owners" means an individual or individuals, but
does not include any firm, partnership, association, corporation,
company, or other legal entity or organization of any kind.
(11) "Replacement property" means a building, structure, or other
shelter constituting a place of abode, whether real property or
personal property, that is owned and occupied by a claimant as his or
her principal place of residence, and any land owned by the claimant
on which the building, structure, or other shelter is situated. For
purposes of this paragraph, land constituting a part of the
replacement property includes only that area of reasonable size that
is used as the site for a residence, and "land owned by the claimant"
includes land for which the claimant either holds a leasehold
interest described in subdivision (c) of Section 61 or a land
purchase contract. For purposes of this paragraph, each unit of a
multiunit dwelling shall be considered a separate replacement
property. "Replacement property" does not include any property,
including land or improvements, if the claimant owned any portion of
that property prior to the date of the disaster that damaged or
destroyed the original property.
(12) "Substantially damaged or destroyed" means property where
either the land or the improvements sustain physical damage amounting
to more than 50 percent of either the land's or the improvement's
full cash value immediately prior to the disaster. Damage includes a
diminution in the value of property as a result of restricted access
to the property where the restricted access was caused by the
disaster and is permanent in nature.
(c) At the time the base year value of the substantially damaged
or destroyed property is transferred to the replacement property
pursuant to an ordinance adopted under this section, the
substantially damaged or destroyed property shall be reassessed at
its full cash value. However, the substantially damaged or destroyed
property shall retain its base year value notwithstanding that
transfer. If the owner or owners of substantially damaged or
destroyed property receive property tax relief under this section,
that property shall not be eligible for property tax relief under
subdivision (c) of Section 70 in the event of its reconstruction.
(d) Only the owner or owners of the property that has been
substantially damaged or destroyed may receive property tax relief
under an ordinance adopted pursuant to this section. Relief under an
ordinance adopted pursuant to this section shall be granted to an
owner or owners of a substantially damaged or destroyed property
obtaining comparable replacement property. The acquisition of an
ownership interest in a legal entity that, directly or indirectly,
owns real property is not an acquisition of comparable replacement
property for purposes of this section.
(e) A timely claim for relief under an ordinance adopted pursuant
to this section, in that form as shall be prescribed by the board,
shall be filed by the owner with the assessor of the county in which
the replacement property is located. No relief under an ordinance
adopted pursuant to this section shall be granted unless the claim is
filed no later than January 1, 1996, or within three years after the
replacement property is acquired or newly constructed, whichever is
later.
(f) Any taxes that were levied on the replacement property prior
to the filing of a claim on the basis of the replacement property's
new base year value, and any allowable annual adjustments thereto,
shall be canceled or refunded to the claimant to the extent that
taxes exceed the amount that would be due when determined on the
basis of the adjusted new base year value.
(g) This section shall apply to any comparable replacement
property of equal or lesser value that is acquired or newly
constructed as a replacement for property that has been substantially
damaged or destroyed by a disaster occurring on or after October 20,
1991, and to the determination of base year values for the 1991-92
fiscal year and each fiscal year thereafter.
(h) The amendments made to this section by the act adding this
subdivision shall apply commencing with the lien date for the 2012-13
fiscal year.
SEC. 4. Section 69.5 of the Revenue and Taxation Code is amended
to read:
69.5. (a) (1) Notwithstanding any other provision of law,
pursuant to subdivision (a) of Section 2 of Article XIII A of the
California Constitution, any person over the age of 55 years, or any
severely and permanently disabled person, who resides in property
that is eligible for the homeowners' exemption under subdivision (k)
of Section 3 of Article XIII of the California Constitution and
Section 218 may transfer, subject to the conditions and limitations
provided in this section, the base year value of that property to any
replacement dwelling of equal or lesser value that is located within
the same county and is purchased or newly constructed by that person
as his or her principal residence within two years of the sale by
that person of the original property, provided that the base year
value of the original property shall not be transferred to the
replacement dwelling until the original property is sold.
(2) Notwithstanding the limitation in paragraph (1) requiring that
the original property and the replacement dwelling be located in the
same county, this limitation shall not apply in any county in which
the county board of supervisors, after consultation with local
affected agencies within the boundaries of the county, adopts an
ordinance making the provisions of paragraph (1) also applicable to
situations in which replacement dwellings are located in that county
and the original properties are located in another county within this
state. The authorization contained in this paragraph shall be
applicable in a county only if the ordinance adopted by the board of
supervisors complies with all of the following requirements:
(A) It is adopted only after consultation between the board of
supervisors and all other local affected agencies within the county's
boundaries.
(B) It requires that all claims for transfers of base year value
from original property located in another county be granted if the
claims meet the applicable requirements of both subdivision (a) of
Section 2 of Article XIII A of the California Constitution and this
section.
(C) It requires that all base year valuations of original property
located in another county and determined by its assessor be accepted
in connection with the granting of claims for transfers of base year
value.
(D) It provides that its provisions are operative for a period of
not less than five years.
(E) The ordinance specifies the date on and after which its
provisions shall be applicable. However, the date specified shall not
be earlier than November 9, 1988. The specified applicable date may
be a date earlier than the date the county adopts the ordinance.
(b) In addition to meeting the requirements of subdivision (a),
any person claiming the property tax relief provided by this section
shall be eligible for that relief only if the following conditions
are met:
(1) The claimant is an owner and a resident of the original
property either at the time of its sale, or at the time when the
original property was substantially damaged or destroyed by
misfortune or calamity, or within two years of the purchase or new
construction of the replacement dwelling.
(2) The original property is eligible for the homeowners'
exemption, as the result of the claimant's ownership and occupation
of the property as his or her principal residence, either at the time
of its sale, or at the time when the original property was
substantially damaged or destroyed by misfortune or calamity, or
within two years of the purchase or new construction of the
replacement dwelling.
(3) At the time of the sale of the original property, the claimant
or the claimant's spouse who resides with the claimant is at least
55 years of age, or is severely and permanently disabled.
(4) At the time of claiming the property tax relief provided by
subdivision (a), the claimant is an owner of a replacement dwelling
and occupies it as his or her principal place of residence and, as a
result thereof, the property is currently eligible for the homeowners'
exemption or would be eligible for the exemption except that the
property is already receiving the exemption because of an exemption
claim filed by the previous owner.
(5) The original property of the claimant is sold by him or her
within two years of the purchase or new construction of the
replacement dwelling. For purposes of this paragraph, the purchase or
new construction of the replacement dwelling includes the purchase
of that portion of land on which the replacement building, structure,
or other shelter constituting a place of abode of the claimant will
be situated and that, pursuant to paragraph (3) of subdivision (g),
constitutes a part of the replacement dwelling.
(6) Except as otherwise provided in paragraph (2) of subdivision
(a), the replacement dwelling, including that portion of land on
which it is situated that is specified in paragraph (5), is located
entirely within the same county as the claimant's original property.
(7) The claimant has not previously been granted, as a claimant,
the property tax relief provided by this section, except that this
paragraph shall not apply to any person who becomes severely and
permanently disabled subsequent to being granted, as a claimant, the
property tax relief provided by this section for any person over the
age of 55 years. In order to prevent duplication of claims under this
section within this state, county assessors shall report quarterly
to the State Board of Equalization that information from claims filed
in accordance with subdivision (f) and from county records as is
specified by the board necessary to identify fully all claims under
this section allowed by assessors and all claimants who have thereby
received relief. The board may specify that the information include
all or a part of the names and social security numbers of claimants
and their spouses and the identity and location of the replacement
dwelling to which the claim applies. The information may be required
in the form of data processing media or other media and in a format
that is compatible with the recordkeeping processes of the counties
and the auditing procedures of the state.
(c) The property tax relief provided by this section shall be
available if the original property or the replacement dwelling, or
both, of the claimant includes, but is not limited to, either of the
following:
(1) A unit or lot within a cooperative housing corporation, a
community apartment project, a condominium project, or a planned unit
development. If the unit or lot constitutes the original property of
the claimant, the assessor shall transfer to the claimant's
replacement dwelling only the base year value of the claimant's unit
or lot and his or her share in any common area reserved as an
appurtenance of that unit or lot. If the unit or lot constitutes the
replacement dwelling of the claimant, the assessor shall transfer the
base year value of the claimant's original property only to the unit
or lot of the claimant and any share of the claimant in any common
area reserved as an appurtenance of that unit or lot.
(2) A manufactured home or a manufactured home and any land owned
by the claimant on which the manufactured home is situated. For
purposes of this paragraph, "land owned by the claimant" includes a
pro rata interest in a resident-owned mobilehome park that is
assessed pursuant to subdivision (b) of Section 62.1.
(A) If the manufactured home or the manufactured home and the land
on which it is situated constitutes the claimant's original
property, the assessor shall transfer to the claimant's replacement
dwelling either the base year value of the manufactured home or the
base year value of the manufactured home and the land on which it is
situated, as appropriate. If the manufactured home dwelling that
constitutes the original property of the claimant includes an
interest in a resident-owned mobilehome park, the assessor shall
transfer to the claimant's replacement dwelling the base year value
of the claimant's manufactured home and his or her pro rata portion
of the real property of the park. No transfer of base year value
shall be made by the assessor of that portion of land that does not
constitute a part of the original property, as provided in paragraph
(4) of subdivision (g).
(B) If the manufactured home or the manufactured home and the land
on which it is situated constitutes the claimant's replacement
dwelling, the assessor shall transfer the base year value of the
claimant's original property either to the manufactured home or the
manufactured home and the land on which it is situated, as
appropriate. If the manufactured home dwelling that constitutes the
replacement dwelling of the claimant includes an interest in a
resident-owned mobilehome park, the assessor shall transfer the base
year value of the claimant's original property to the manufactured
home of the claimant and his or her pro rata portion of the park. No
transfer of base year value shall be made by the assessor to that
portion of land that does not constitute a part of the replacement
dwelling, as provided in paragraph (3) of subdivision (g).
This subdivision shall be subject to the limitations specified in
subdivision (d).
(d) The property tax relief provided by this section shall be
available to a claimant who is the coowner of the original property,
as a joint tenant, a tenant in common, a community property owner, or
a present beneficiary of a trust subject to the following
limitations:
(1) If a single replacement dwelling is purchased or newly
constructed by all of the coowners and each coowner retains an
interest in the replacement dwelling, the claimant shall be eligible
under this section whether or not any or all of the remaining
coowners would otherwise be eligible claimants.
(2) If two or more replacement dwellings are separately purchased
or newly constructed by two or more coowners and more than one
coowner would otherwise be an eligible claimant, only one coowner
shall be eligible under this section. These coowners shall determine
by mutual agreement which one of them shall be deemed eligible.
(3) If two or more replacement dwellings are separately purchased
or newly constructed by two coowners who held the original property
as community property, only the coowner who has attained the age of
55 years, or is severely and permanently disabled, shall be eligible
under this section. If both spouses are over 55 years of age, they
shall determine by mutual agreement which one of them is eligible.
In the case of coowners whose original property is a multiunit
dwelling, the limitations imposed by paragraphs (2) and (3) shall
only apply to coowners who occupied the same dwelling unit within the
original property at the time specified in paragraph (2) of
subdivision (b).
(e) Upon the sale of original property, the assessor shall
determine a new base year value for that property in accordance with
subdivision (a) of Section 2 of Article XIII A of the California
Constitution and Section 110.1, whether or not a replacement dwelling
is subsequently purchased or newly constructed by the former owner
or owners of the original property.
This section shall not apply unless the transfer of the original
property is a change in ownership that either (1) subjects that
property to reappraisal at its current fair market value in
accordance with Section 110.1 or 5803 or (2) results in a base year
value determined in accordance with this section, Section 69, or
Section 69.3 because the property qualifies under this section,
Section 69, or Section 69.3 as a replacement dwelling or property.
(f) (1) A claimant shall not be eligible for the property tax
relief provided by this section unless the claimant provides to the
assessor, on a form that shall be designed by the State Board of
Equalization and that the assessor shall make available upon request,
the following information:
(A) The name and social security number of each claimant and of
any spouse of the claimant who is a record owner of the replacement
dwelling.
(B) Proof that the claimant or the claimant's spouse who resided
on the original property with the claimant was, at the time of its
sale, at least 55 years of age, or severely and permanently disabled.
Proof of severe and permanent disability shall be considered a
certification, signed by a licensed physician and surgeon of
appropriate specialty, attesting to the claimant's severely and
permanently disabled condition. In the absence of available proof
that a person is over 55 years of age, the claimant shall certify
under penalty of perjury that the age requirement is met. In the case
of a severely and permanently disabled claimant either of the
following shall be submitted:
(i) A certification, signed by a licensed physician or surgeon of
appropriate specialty that identifies specific reasons why the
disability necessitates a move to the replacement dwelling and the
disability-related requirements, including any locational
requirements, of a replacement dwelling. The claimant shall
substantiate that the replacement dwelling meets disability-related
requirements so identified and that the primary reason for the move
to the replacement dwelling is to satisfy those requirements. If the
claimant, or the claimant's spouse or guardian, so declares under
penalty of perjury, it shall be rebuttably presumed that the primary
purpose of the move to the replacement dwelling is to satisfy
identified disability-related requirements.
(ii) The claimant's substantiation that the primary purpose of the
move to the replacement dwelling is to alleviate financial burdens
caused by the disability. If the claimant, or the claimant's spouse
or guardian, so declares under penalty of perjury, it shall be
rebuttably presumed that the primary purpose of the move is to
alleviate the financial burdens caused by the disability.
(C) The address and, if known, the assessor's parcel number of the
original property.
(D) The date of the claimant's sale of the original property and
the date of the claimant's purchase or new construction of a
replacement dwelling.
(E) A statement by the claimant that he or she occupied the
replacement dwelling as his or her principal place of residence on
the date of the filing of his or her claim.
(F) Any claim under this section shall be filed within three years
of the date the replacement dwelling was purchased or the new
construction of the replacement dwelling was completed subject to
subdivision (k) or (m).
(2) A claim for transfer of base year value under this section
that is filed after the expiration of the filing period set forth in
subparagraph (F) of paragraph (1) shall be considered by the
assessor, subject to all of the following conditions:
(A) Any base year value transfer granted pursuant to that claim
shall apply commencing with the lien date of the assessment year in
which the claim is filed.
(B) The full cash value of the replacement property in the
assessment year described in subparagraph (A) shall be the base year
value of the real property in the assessment year in which the base
year value was transferred, factored to the assessment year described
in subparagraph (A) for both of the following:
(i) Inflation as annually determined in accordance with paragraph
(1) of subdivision (a) of Section 51.
(ii) Any subsequent new construction occurring with respect to the
subject real property that does not qualify for property tax relief
pursuant to the criteria set forth in subparagraphs (A) and (B) of
paragraph (4) of subdivision (h).
(g) For purposes of this section:
(1) "Person over the age of 55 years" means any person or the
spouse of any person who has attained the age of 55 years or older at
the time of the sale of the original property.
(2) "Base year value of the original property" means its base year
value, as determined in accordance with Section 110.1, with the
adjustments permitted by subdivision (b) of Section 2 of Article XIII
A of the California Constitution and subdivision (f) of Section
110.1, determined as of the date immediately prior to the date that
the original property is sold by the claimant, or in the case where
the original property has been substantially damaged or destroyed by
misfortune or calamity and the owner does not rebuild on the original
property, determined as of the date immediately prior to the
misfortune or calamity.
If the replacement dwelling is purchased or newly constructed
after the transfer of the original property, "base year value of the
original property" also includes any inflation factor adjustments
permitted by subdivision (f) of Section 110.1 for the period
subsequent to the sale of the original property. The base year or
years used to compute the "base year value of the original property"
shall be deemed to be the base year or years of any property to which
that base year value is transferred pursuant to this section.
(3) "Replacement dwelling" means a building, structure, or other
shelter constituting a place of abode, whether real property or
personal property, that is owned and occupied by a claimant as his or
her principal place of residence, and any land owned by the claimant
on which the building, structure, or other shelter is situated. For
purposes of this paragraph, land constituting a part of a replacement
dwelling includes only that area of reasonable size that is used as
a site for a residence, and "land owned by the claimant" includes
land for which the claimant either holds a leasehold interest
described in subdivision (c) of Section 61 or a land purchase
contract. Each unit of a multiunit dwelling shall be considered a
separate replacement dwelling. For purposes of this paragraph, "area
of reasonable size that is used as a site for a residence" includes
all land if any nonresidential uses of the property are only
incidental to the use of the property as a residential site. For
purposes of this paragraph, "land owned by the claimant" includes an
ownership interest in a resident-owned mobilehome park that is
assessed pursuant to subdivision (b) of Section 62.1.
(4) "Original property" means a building, structure, or other
shelter constituting a place of abode, whether real property or
personal property, that is owned and occupied by a claimant as his or
her principal place of residence, and any land owned by the claimant
on which the building, structure, or other shelter is situated. For
purposes of this paragraph, land constituting a part of the original
property includes only that area of reasonable size that is used as a
site for a residence, and "land owned by the claimant" includes land
for which the claimant either holds a leasehold interest described
in subdivision (c) of Section 61 or a land purchase contract. Each
unit of a multiunit dwelling shall be considered a separate original
property. For purposes of this paragraph, "area of reasonable size
that is used as a site for a residence" includes all land if any
nonresidential uses of the property are only incidental to the use of
the property as a residential site. For purposes of this paragraph,
"land owned by the claimant" includes an ownership interest in a
resident-owned mobilehome park that is assessed pursuant to
subdivision (b) of Section 62.1.
(5) "Equal or lesser value" means that the amount of the full cash
value of a replacement dwelling does not exceed one of the
following:
(A) One hundred percent of the amount of the full cash value of
the original property if the replacement dwelling is purchased or
newly constructed prior to the date of the sale of the original
property.
(B) One hundred and five percent of the amount of the full cash
value of the original property if the replacement dwelling is
purchased or newly constructed within the first year following the
date of the sale of the original property.
(C) One hundred and ten percent of the amount of the full cash
value of the original property if the replacement dwelling is
purchased or newly constructed within the second year following the
date of the sale of the original property.
For the purposes of this paragraph, except as otherwise provided
in paragraph (4) of subdivision (h), if the replacement dwelling is,
in part, purchased and, in part, newly constructed, the date the
"replacement dwelling is purchased or newly constructed" is the date
of purchase or the date of completion of construction, whichever is
later.
(6) "Full cash value of the replacement dwelling" means its full
cash value, determined in accordance with Section 110.1, as of the
date on which it was purchased or new construction was completed, and
after the purchase or the completion of new construction.
(7) "Full cash value of the original property" means, either:
(A) Its new base year value, determined in accordance with
subdivision (e), without the application of subdivision (h) of
Section 2 of Article XIII A of the California Constitution, plus the
adjustments permitted by subdivision (b) of Section 2 of Article XIII
A and subdivision (f) of Section 110.1 for the period from the date
of its sale by the claimant to the date on which the replacement
property was purchased or new construction was completed.
(B) In the case where the original property has been substantially
damaged or destroyed by misfortune or calamity and the owner does
not rebuild on the original property, its full cash value, as
determined in accordance with Section 110, immediately prior to its
substantial damage or destruction by misfortune or calamity, as
determined by the county assessor of the county in which the property
is located, without the application of subdivision (h) of Section 2
of Article XIII A of the California Constitution, plus the
adjustments permitted by subdivision (b) of Section 2 of Article XIII
A of the California Constitution and subdivision (f) of Section
110.1, for the period from the date of its sale by the claimant to
the date on which the replacement property was purchased or new
construction was completed.
(8) "Sale" means any change in ownership of the original property
for consideration.
(9) "Claimant" means any person claiming the property tax relief
provided by this section. If a spouse of that person is a record
owner of the replacement dwelling, the spouse is also a claimant for
purposes of determining whether in any future claim filed by the
spouse under this section the condition of eligibility specified in
paragraph (7) of subdivision (b) has been met.
(10) "Property that is eligible for the homeowners' exemption"
includes property that is the principal place of residence of its
owner and is entitled to exemption pursuant to Section 205.5.
(11) "Person" means any individual, but does not include any firm,
partnership, association, corporation, company, or other legal
entity or organization of any kind. "Person" includes an individual
who is the present beneficiary of a trust.
(12) "Severely and permanently disabled" means any person
described in subdivision (b) of Section 74.3.
(13) For the purposes of this section, property is "substantially
damaged or destroyed by misfortune or calamity" if either the land or
the improvements sustain physical damage amounting to more than 50
percent of either the land's or the improvement's full cash value
immediately prior to the misfortune or calamity. Damage includes a
diminution in the value of property as a result of restricted access
to the property where the restricted access was caused by the
misfortune or calamity and is permanent in nature.
(h) (1) Upon the timely filing of a claim described in
subparagraph (F) of paragraph (1) of subdivision (f), the assessor
shall adjust the new base year value of the replacement dwelling in
conformity with this section. This adjustment shall be made as of the
latest of the following dates:
(A) The date the original property is sold.
(B) The date the replacement dwelling is purchased.
(C) The date the new construction of the replacement dwelling is
completed.
(2) Any taxes that were levied on the replacement dwelling prior
to the filing of the claim on the basis of the replacement dwelling's
new base year value, and any allowable annual adjustments thereto,
shall be canceled or refunded to the claimant to the extent that the
taxes exceed the amount that would be due when determined on the
basis of the adjusted new base year value.
(3) Notwithstanding Section 75.10, Chapter 3.5 (commencing with
Section 75) shall be utilized for purposes of implementing this
subdivision, including adjustments of the new base year value of
replacement dwellings acquired prior to the sale of the original
property.
(4) In the case where a claim under this section has been timely
filed and granted, and new construction is performed upon the
replacement dwelling subsequent to the transfer of base year value,
the property tax relief provided by this section also shall apply to
the replacement dwelling, as improved, and thus there shall be no
reassessment upon completion of the new construction if both of the
following conditions are met:
(A) The new construction is completed within two years of the date
of the sale of the original property and the owner notifies the
assessor in writing of completion of the new construction within six
months after completion.
(B) The fair market value of the new construction on the date of
completion, plus the full cash value of the replacement dwelling on
the date of acquisition, is not more than the full cash value of the
original property as determined pursuant to paragraph (7) of
subdivision (g) for purposes of granting the original claim.
(i) Any claimant may rescind a claim for the property tax relief
provided by this section and shall not be considered to have received
that relief for purposes of paragraph (7) of subdivision (b), and
the assessor shall grant the rescission, if a written notice of
rescission is delivered to the office of the assessor as follows:
(1) A written notice of rescission signed by the original filing
claimant or claimants is delivered to the office of the assessor in
which the original claim was filed.
(2) (A) Except as otherwise provided in this paragraph, the notice
of rescission is delivered to the office of the assessor before the
date that the county first issues, as a result of relief granted
under this section, a refund check for property taxes imposed upon
the replacement dwelling. If granting relief will not result in a
refund of property taxes, then the notice shall be delivered before
payment is first made of any property taxes, or any portion thereof,
imposed upon the replacement dwelling consistent with relief granted
under this section. If payment of the taxes is not made, then notice
shall be delivered before the first date that those property taxes,
or any portion thereof, imposed upon the replacement dwelling,
consistent with relief granted under this section, are delinquent.
(B) Notwithstanding any other provision in this division, any time
the notice of rescission is delivered to the office of the assessor
within six years after relief was granted, provided that the
replacement property has been vacated as the claimant's principal
place of residence within 90 days after the original claim was filed,
regardless of whether the property continues to receive the
homeowners' exemption. If the rescission increases the base year
value of a property, or the homeowners' exemption has been
incorrectly allowed, appropriate escape assessments or supplemental
assessments, including interest as provided in Section 506, shall be
imposed. The limitations periods for any escape assessments or
supplemental assessments shall not commence until July 1 of the
assessment year in which the notice of rescission is delivered to the
office of the assessor.
(3) The notice is accompanied by the payment of a fee as the
assessor may require, provided that the fee shall not exceed an
amount reasonably related to the estimated cost of processing a
rescission claim, including both direct costs and developmental and
indirect costs, such as costs for overhead, personnel, supplies,
materials, office space, and computers.
(j) (1) With respect to the transfer of base year value of
original properties to replacement dwellings located in the same
county, this section, except as provided in paragraph (3) or (4),
shall apply to any replacement dwelling that is purchased or newly
constructed on or after November 6, 1986.
(2) With respect to the transfer of base year value of original
properties to replacement dwellings located in different counties,
except as provided in paragraph (4), this section shall apply to any
replacement dwelling that is purchased or newly constructed on or
after the date specified in accordance with subparagraph (E) of
paragraph (2) of subdivision (a) in the ordinance of the county in
which the replacement dwelling is located, but shall not apply to any
replacement dwelling which was purchased or newly constructed before
November 9, 1988.
(3) With respect to the transfer of base year value by a severely
and permanently disabled person, this section shall apply only to
replacement dwellings that are purchased or newly constructed on or
after June 6, 1990.
(4) The amendments made to subdivision (e) by the act adding this
paragraph shall apply only to replacement dwellings under Section 69
that are acquired or newly constructed on or after October 20, 1991,
and shall apply commencing with the 1991-92 fiscal year.
(k) (1) In the case in which a county adopts an ordinance pursuant
to paragraph (2) of subdivision (a) that establishes an applicable
date which is more than three years prior to the date of adoption of
the ordinance, those potential claimants who purchased or constructed
replacement dwellings more than three years prior to the date of
adoption of the ordinance and who would, therefore, be precluded from
filing a timely claim, shall be deemed to have timely filed a claim
if the claim is filed within three years after the date that the
ordinance is adopted. This paragraph may not be construed as a waiver
of any other requirement of this section.
(2) In the case in which a county assessor corrects a base year
value to reflect a pro rata change in ownership of a resident-owned
mobilehome park that occurred between January 1, 1989, and January 1,
2002, pursuant to paragraph (4) of subdivision (b) of Section 62.1,
those claimants who purchased or constructed replacement dwellings
more than three years prior to the correction and who would,
therefore, be precluded from filing a timely claim, shall be deemed
to have timely filed a claim if the claim is filed within three years
of the date of notice of the correction of the base year value to
reflect the pro rata change in ownership. This paragraph may not be
construed as a waiver of any other requirement of this section.
(3) This subdivision does not apply to a claimant who has
transferred his or her replacement dwelling prior to filing a claim.
(4) The property tax relief provided by this section, but filed
under this subdivision, shall apply prospectively only, commencing
with the lien date of the assessment year in which the claim is
filed. There shall be no refund or cancellation of taxes prior to the
date that the claim is filed.
(l) No escape assessment may be levied if a transfer of base year
value under this section has been erroneously granted by the assessor
pursuant to an expired ordinance authorizing intercounty transfers
of base year value.
(m) (1) The amendments made to subdivisions (b) and (g) of this
section by Chapter 613 of the Statutes of 2001 shall apply:
(A) With respect to the transfer of base year value of original
properties to replacement dwellings located in the same county, to
any replacement dwelling that is purchased or newly constructed on or
after November 6, 1986.
(B) With respect to the transfer of base year value of original
properties to replacement dwellings located in different counties, to
any replacement dwelling that is purchased or newly constructed on
or after the date specified in accordance with subparagraph (E) of
paragraph (2) of subdivision (a) in the ordinance of the county in
which the replacement dwelling is located, but not to any replacement
dwelling that was purchased or newly constructed before November 9,
1988.
(C) With respect to the transfer of base year value by a severely
and permanently disabled person, to replacement dwellings that are
purchased or newly constructed on or after June 6, 1990.
(2) The property tax relief provided by this section in accordance
with this subdivision shall apply prospectively only commencing with
the lien date of the assessment year in which the claim is filed.
There shall be no refund or cancellation of taxes prior to the date
that the claim is filed.
(n) A claim filed under this section is not a public document and
is not subject to public inspection, except that a claim shall be
available for inspection by the claimant or the claimant's spouse,
the claimant's or the claimant's spouse's legal representative, the
trustee of a trust in which the claimant or the claimant's spouse is
a present beneficiary, and the executor or administrator of the
claimant's or the claimant's spouse's estate.
(o) The amendments made to this section by the act adding this
subdivision shall apply commencing with the lien date for the 2012-13
fiscal year.
SEC. 5. Section 74.5 of the Revenue and Taxation Code is amended
to read:
74.5. (a) For purposes of subdivision (a) of Section 2 of Article
XIII A of the California Constitution, "newly constructed" and "new
construction" does not include that portion of an existing structure
that consists of the construction or reconstruction of seismic
retrofitting components, as defined in this section.
(b) For purposes of this section, all of the following apply:
(1) "Seismic retrofitting components" means seismic retrofitting
improvements and improvements utilizing earthquake hazard mitigation
technologies.
(2) "Seismic retrofitting improvements" means retrofitting or
reconstruction of an existing building or structure, to abate falling
hazards from structural or nonstructural components of any building
or structure including, but not limited to, parapets, appendages,
cornices, hanging objects, and building cladding that pose serious
danger. "Seismic retrofitting improvements" also means either
structural strengthening or providing the means necessary to resist
seismic force levels that would otherwise be experienced by an
existing building or structure during an earthquake, so as to
significantly reduce hazards to life and safety while also providing
for the substantially safe ingress and egress of building occupants
during and immediately after an earthquake. "Seismic retrofitting
improvements" does not include alterations, such as new plumbing,
electrical, or other added finishing materials, made in addition to
seismic-related work performed on an existing structure. "Seismic
retrofitting" includes, but is not limited to, those items referenced
in Appendix A of the International Existing Building Code of the
International Code Council.
(3) "Improvements utilizing earthquake hazard mitigation
technologies" means improvements to existing buildings identified by
a local government as being hazardous to life in the event of an
earthquake. These improvements shall involve strategies for
earthquake protection of structures. These improvements shall use
technologies such as those referenced in Part 2 (commencing with
Section 1.1.1.) of Title 24 of the California Building Code and
similar seismic provisions in the International Building Code.
(c) The property owner, primary contractor, civil or structural
engineer, or architect shall certify to the building department those
portions of the project that are seismic retrofitting components, as
defined in this section. Upon completion of the project, the
building department shall report to the county assessor the costs of
the portions of the project that are seismic retrofitting components.
(d) In order to receive the exclusion, the property owner shall
notify the assessor prior to, or within 30 days of, completion of the
project that he or she intends to claim the exclusion for seismic
retrofitting components. The State Board of Equalization shall
prescribe the manner and form for claiming the exclusion. All
documents necessary to support the exclusion shall be filed by the
property owner with the assessor not later than six months after the
completion of the project.
(e) The Legislature finds and declares that the reconstruction and
improvement actions that were excluded from "newly constructed" and
"new construction" by Chapter 1187 of the Statutes of 1983 meet the
requirements of "construction or reconstruction of seismic
retrofitting components on an existing structure," as provided in the
act that amended this subdivision. Therefore, a structure
constructed of unreinforced masonry bearing wall construction that is
receiving a 15-year new construction exclusion as provided by
Chapter 1187 of the Statutes of 1983 on the operative date of this
act shall continue to receive, pursuant to this section, an exclusion
after the 15-year period expires, unless the property is purchased
or changes ownership, in which case Chapter 2 (commencing with
Section 60) applies.
SEC. 6. Section 74.6 of the Revenue and Taxation Code is amended
to read:
74.6. (a) For purposes of paragraph (4) of subdivision (c) of
Section 2 of Article XIII A of the California Constitution, "newly
constructed" and "new construction" does not include the
construction, installation, removal, or modification of any portion
or structural component of an existing building or structure to the
extent that it is done for the purpose of making the building or
structure more accessible to, or more usable by, a disabled person.
(b) For the purposes of this section, "disabled person" means a
person who suffers from a physical impairment that substantially
limits one or more of that person's major life activities.
(c) The exclusion provided for in subdivision (a) shall apply to
all buildings or structures except for those buildings or structures
that qualify for the exclusion provided for in subdivision (a) of
Section 74.3.
(d) The exclusion provided for in this section does not apply to
the construction of an entirely new building or structure, or to the
construction of an entirely new addition to an existing building or
structure.
(e) For purposes of the exclusion provided for in subdivision (a),
the property owner, primary contractor, civil engineer, or architect
shall submit to the assessor a statement that shall identify those
specific portions of the project that constitute construction,
installation, removal, or modification improvements to the building
or structure to make the building or structure more accessible to, or
usable by, a disabled person.
(f) For the purposes of the exclusion provided for in subdivision
(a), the construction, improvement, modification, or alteration of an
existing building or structure may include, but is not limited to,
access ramps, widening of doorways and hallways, barrier removal,
access modifications to restroom facilities, elevators, and any other
accessibility modification of a building or structure that would
cause it to meet or exceed the accessibility standards of the 1990
Americans with Disabilities Act (Public Law 101-336) and the most
recent edition to the California Building Standards Code that is in
effect on the date of the application for a building permit.
(g) In order to receive the exclusion provided for in this
section, the property owner shall notify the assessor prior to, or
within 30 days of, completion of any project covered by this section
that he or she intends to claim the exclusion for making improvements
of the type specified in subdivision (a). The State Board of
Equalization shall prescribe the manner and form for claiming the
exclusion. All documents necessary to support the exclusion shall be
filed by the property owner with the assessor not later than six
months after the completion of the project.
(h) This section applies to any construction, installation,
removal, or modification completed on or after June 7, 1994.
SEC. 7. Section 75.23 of the Revenue and Taxation Code is
repealed.
SEC. 8. Section 271.5 is added to the Revenue and Taxation Code,
to read:
271.5. (a) In the event that property receiving the college,
cemetery, church, religious, exhibition, veterans' organization,
tribal housing, or welfare exemption is sold or otherwise
transferred, the exemption shall cease to apply on the date of that
sale or transfer. A new exemption shall be available subject to the
provisions of Section 271.
(b) Termination of the exemption under this section shall result
in an escape assessment of the property pursuant to Section 531.1.
SEC. 9. Section 276.2 of the Revenue and Taxation Code is amended
to read:
276.2. (a) If property becomes eligible for the disabled veterans'
exemption as described in Section 205.5 after the lien date, and an
appropriate application for that exemption is filed on the later of
90 days after the date on which the property became eligible or on or
before the next following lien date, there shall be canceled or
refunded the amount of any taxes, including any interest and
penalties thereon, levied on that portion of the assessed value of
the property that would have been exempt under a timely and
appropriate application.
(b) The entire amount of the exemption applies to any property tax
assessment, including a supplemental and escape assessment, that was
made and that served as a lien against the property. The exemption
amount shall be appropriately prorated from the date the property
became eligible for the exemption.
SEC. 10. Section 278 of the Revenue and Taxation Code is amended
to read:
278. Prior to the lien date, the assessor shall annually mail a
notice to all claimants who received the disabled veterans' exemption
in the immediately preceding year, except where such person has
transferred title in the property since the immediately preceding
lien date. The notice shall
inform the taxpayer of the requirements that must be met in order to
be eligible for the exemption, of the penalties if the taxpayer
allows the exemption to continue when he or she is not eligible for
the exemption, and of his or her duty to inform the assessor when he
or she is no longer eligible for the exemption.
SEC. 11. Section 483 of the Revenue and Taxation Code is amended
to read:
483. (a) If the assessee establishes to the satisfaction of the
county board of equalization or the assessment appeals board that the
failure to file the change in ownership statement within the time
required by subdivision (a) of Section 482 was due to reasonable
cause and not due to willful neglect, and has filed the statement
with the assessor, the county board of equalization or the assessment
appeals board may order the penalty abated, provided the assessee
has filed with the county board of equalization or the assessment
appeals board a written application for abatement of the penalty no
later than 60 days after the date on which the assessee was notified
of the penalty.
If the penalty is abated it shall be canceled or refunded in the
same manner as an amount of tax erroneously charged or collected.
(b) The provisions of subdivision (a) shall not apply in any
county in which the board of supervisors adopts a resolution to that
effect. In that county the penalty provided for in subdivision (a) of
Section 482 shall be abated if the assessee files the change of
ownership statement with the assessor no later than 60 days after the
date on which the assessee was notified of the penalty.
If the penalty is abated it shall be canceled or refunded in the
same manner as an amount of tax erroneously charged or collected.
(c) If a person or legal entity establishes to the satisfaction of
the county board of equalization or the assessment appeals board
that the failure to file the change in ownership statement within the
time required by subdivision (b) of Section 482 was due to
reasonable cause and not due to willful neglect, and has filed the
statement with the State Board of Equalization, the county board of
equalization or the assessment appeals board may order the penalty be
abated, provided the person or legal entity has filed with the
county board of equalization or the assessment appeals board a
written application for abatement of the penalty no later than 60
days after the date on which the person or legal entity was notified
of the penalty by the assessor.
If the penalty is abated by the county board of equalization or
the assessment appeals board, it shall be canceled or refunded in the
same manner as an amount of tax erroneously charged or collected.
SEC. 12. Section 531.1 of the Revenue and Taxation Code is amended
to read:
531.1. Upon the termination of an exemption pursuant to Section
271.5 or 276.3, upon receipt of a notice pursuant to Section 284, or
upon indication from any audit or other source that an exemption has
been incorrectly allowed, the assessor shall make a redetermination
of eligibility for the exemption. If an exemption or any portion of
an exemption has been terminated or has been incorrectly allowed, an
escape assessment in the amount of the exemption, or that portion of
the exemption that has been terminated or erroneously allowed, with
interest as provided in Section 506, shall be made; except that where
the exemption was terminated pursuant to Section 271.5 or 276.3 or
where the exemption or a portion of the exemption was allowed as the
result of an assessor's error, the amount of interest shall be
forgiven. If the exemption was incorrectly allowed because of
erroneous or incorrect information submitted by the claimant with
knowledge that the information was erroneous or incomplete, the
penalty provided in Section 504 shall be added to the assessment.
SEC. 13. Section 830 of the Revenue and Taxation Code is amended
to read:
830. (a) If the request of the board is mailed before the lien
date as defined in Section 722, the property statement shall be filed
with the board by March 1, and shall be in such detail as the board
may prescribe.
(b) If the request of the board is mailed on or after the first
day of January following the lien date, the property statement shall
be filed with the board within 60 days after the request is mailed.
(c) Except as hereinafter provided, if any person fails to file
the property statement, in whole or in part, by March 1, or by that
later date to which the filing period is extended pursuant to
subdivision (b) or Section 830.1, a penalty shall be added to the
full value of the assessment of so much of the property as is not
timely reported as follows:
(1) For any part of the property statement relating to the
development of the unit value of operating property, the penalty
shall be 10 percent of the unit value.
(2) For any part of the property statement, not relating to the
development of the unit value of operating property, that lists or
describes specific operating property, the penalty shall be 10
percent of the allocated value of the property, which penalty shall
be added to the unit value.
(3) For any part of the property statement that lists or describes
specific nonunitary property, the penalty shall be 10 percent of the
value of the property.
(4) If the failure to timely file a property statement is due to a
fraudulent or willful attempt to evade the tax, a penalty of 25
percent of the assessed value of the estimated assessment shall be
added to the assessment. A willful failure to file a property
statement as required by Article 5 (commencing with Section 826)
shall be deemed to be a willful attempt to evade the tax.
(5) No penalty added pursuant to paragraph (1), (2), (3), or (4)
may exceed twenty million dollars ($20,000,000) of full value. In
addition, if a penalty has been added pursuant to paragraph (1), (2),
or (3), if a claim for refund seeking the recovery of that penalty
has been filed by the state assessee contesting the penalty within
three months of the due date of the second installment, and the state
assessee initiates an action in the superior court within one year
of the filing of the claim for refund, the state assessee is not
subject to any further penalties on subsequent assessments for
failure to comply with any subsequent request seeking information or
data with respect to the same issue as set forth in the claim for
refund filed within the time limits set forth above, until the
assessment year after a final decision of the court, and then only
with respect to a failure to comply with a request for information
with respect to assessments after a final decision of the court. For
purposes of this paragraph, "same issue" means the type of
information that is the subject of the disputed request for
information.
(d) Any person who subscribes to the board's tax rate area change
service and who receives a change mailed between April 1 and May 1,
shall file a corrected statement no later than May 30 with respect to
those parts of the property statement that are affected by the
change.
If that person receives a change mailed after May 1, a corrected
statement shall be filed no later than the 60th day following the
mailing of that change.
(e) Penalties incurred for filings received after June 30 may be
included with the assessments for the succeeding fiscal year.
(f) If the assessee establishes to the satisfaction of the board
that the failure to file the property statement or any of its parts
within the time required by this section was due to reasonable cause
and occurred notwithstanding the exercise of ordinary care and the
absence of willful neglect, the board shall order the penalty abated,
in whole or in part, provided the assessee has filed with the board
written application for abatement of the penalty within the time
prescribed by law for the filing of applications for assessment
reductions.
SEC. 14. Section 862 of the Revenue and Taxation Code is amended
to read:
862. When an assessee, after a request by the board, fails to
file a property statement by the date specified in Section 830 or
files with the board a property statement or report on a form
prescribed by the board with respect to state-assessed property and
the statement fails to report any taxable tangible property
information accurately, regardless of whether or not this information
is available to the assessee, to the extent that these failures
cause the board not to assess the property or to assess it at a lower
valuation than it would have if the property information had been
reported accurately, the property shall be assessed in accordance
with Section 864, and a penalty of 10 percent shall be added to the
additional assessment. If the failure to report or the failure to
report accurately is willful or fraudulent, a penalty of 25 percent
shall be added to the additional assessment. If the assessee
establishes to the satisfaction of the board that the failure to file
an accurate property statement was due to reasonable cause and
occurred notwithstanding the exercise of ordinary care and the
absence of willful neglect, the board shall order the penalty abated,
in whole or in part, provided that the assessee has filed with the
board written application for abatement of the penalty within the
time prescribed by law for the filing of applications for assessment
reductions.
SEC. 15. Section 1150 of the Revenue and Taxation Code is amended
to read:
1150. As used in this article, "certificated aircraft" means
aircraft operated by an air carrier or foreign air carrier engaged in
air transportation, as defined in Section 40102(a)(2), (5), (6), and
(21) of Title 49 of the United States Code, while there is in force
a certificate or permit issued by the Federal Aviation
Administration, or its successor, authorizing such air carrier to
engage in such transportation.
SEC. 16. Section 1154 of the Revenue and Taxation Code is amended
to read:
1154. (a) As used in this section, "air taxi" means aircraft used
by an air carrier which does not utilize aircraft having a maximum
passenger capacity of more than 30 seats or a maximum payload
capacity of more than 7,500 pounds in air transportation and which
does not hold a certificate of public convenience and necessity or
other economic authority issued by the Federal Aviation
Administration, or its successor.
(b) Air taxis which are operated in scheduled air taxi operations
are not subject to the provisions of Part 10 (commencing with Section
5301) of this division and shall be assessed in accordance with the
allocation formula set forth in Section 1152.
(c) All other air taxis shall be assessed in the county where the
aircraft is habitually situated in the same manner and at the same
ratio as other personal property in the county subject to general
property taxation. Such aircraft shall be taxed at the same rate and
in the same manner as all other property on the unsecured roll.
SEC. 17. Section 2821 of the Revenue and Taxation Code is amended
to read:
2821. Any person filing an affidavit of interest may apply to the
tax collector to have any parcel separately valued on the current
roll for the purpose of paying taxes. A county may, upon approval of
the board of supervisors, require that the applicant notify the
property owner.
The application shall be made during the current fiscal year, and
shall set forth the fact that a duly executed and recorded deed,
purchase contract, deed of trust, mortgage, or final decree of court
describes the parcel sought to be separately valued. A county may,
upon approval of the board of supervisors, allow these applications
between July 1 and March 31.
The application may request that the tax created by the assessment
of personal property, or leasehold improvements, or possessory
interests on the whole assessment be allowed to remain as a lien on
the parcel sought to be separately valued.
If any lien not determined by the application of a tax rate on a
valuation of property has been levied or placed on the whole
assessment, the application may be accompanied by the certification
of the taxing agency or revenue district authorized by law to levy or
place the lien, setting forth the specific amount of that portion of
the lien levied or placed on the whole assessment which is to
continue to be levied or placed on the parcel sought to be separately
valued.
The board of supervisors may provide that a parcel with a lien
against it and other property, pursuant to the Improvement Act of
1911 (Division 7 (commencing with Section 5000) of the Streets and
Highways Code) or the Improvement Bond Act of 1915 (Division 10
(commencing with Section 8500) of the Streets and Highways Code) will
not be separately valued unless a request has been made to the
agency levying the bond lien for a division of land and bond. A copy
of the requested division of land and bond shall accompany the
request for separate property tax valuation.
Any separations of property pursuant to this section are for
valuing property for tax purposes only, and are not intended to
create a legal building site or to supersede requirements pursuant to
zoning, building, lot split, or subdivision ordinances.
Once created, an individual interest parcel may be entered as a
separate assessment on subsequent assessment rolls until the time
that ownership of the interest is conveyed or until the original
applicant or his or her agent requests that the parcel be recombined.
Upon authorization by ordinance by the board of supervisors, the
county may charge a fee for actual costs incurred for the processing
of an application for separate assessment, and the initial and
ongoing costs of separate assessment, billings, and mailings. Fees
shall be subject to Chapter 12.5 (commencing with Section 54985) of
Part 1 of Division 2 of Title 5 of the Government Code, and may be
billed separately or prior to initial separate tax bills, or both, or
collected on subsequent tax bills, and shall be deposited in the
county's general fund.
SEC. 18. Section 4831 of the Revenue and Taxation Code is amended
to read:
4831. Incorrect entries on a roll may be corrected under this
article as follows:
(a) (1) Any error or omission not involving the exercise of
assessor value judgment may be corrected within four years after the
making of the assessment being corrected.
(2) Notwithstanding paragraph (1), the four-year limit shall not
apply to escape assessments caused by the assessee's failure to
report the information required by Article 2 (commencing with Section
441) of Chapter 3 of Part 2.
(b) Any error or omission not involving the exercise of assessor
value judgment that is discovered as a result of any audit may be
corrected within six months after the completion of the audit.
(c) Any error or omission involving the exercise of assessor value
judgment that arises solely from a failure to reflect a decline in
the taxable value of real property, floating homes subject to
taxation pursuant to Section 229, and manufactured homes subject to
taxation under Part 13 (commencing with Section 5800), as required by
paragraph (2) of subdivision (a) of Section 51 shall only be
corrected within one year after the making of the assessment that is
being corrected.
(d) Taxes that are not a lien or charge on the property assessed
may be transferred from the secured roll to the unsecured roll of the
corresponding year by the county auditor. These taxes shall be
collected in the same manner as other delinquent taxes on the
unsecured roll and shall be subject to delinquent penalties in the
same manner as taxes transferred to the unsecured roll under Section
5090. The statute of limitations for the collection of those taxes
shall commence to run from the date of transfer.
SEC. 19. Section 5303 of the Revenue and Taxation Code is amended
to read:
5303. (a) "Aircraft" means any contrivance used or designed for
the navigation of or for flight in the air which has been flown at
least once, other than a parachute or similar emergency safety
device.
(b) "Aircraft" does not include any of the following:
(1) Rockets or missiles.
(2) Aircraft operated exclusively by an air carrier or foreign air
carrier, as respectively defined in Section 40102(a)(2) and (21) of
Title 49 of the United States Code, engaged in air transportation, as
defined in Section 40102(a)(5) of that title, while there is in
force a certificate or permit issued by the Federal Aviation
Administration, or its successor, authorizing such air carrier to
engage in such transportation.
(3) Air taxis, as defined in subdivision (a) of Section 1154.
SEC. 20. Section 11551 of the Revenue and Taxation Code is amended
to read:
11551. If the board determines that any amount, penalty, or
interest has been paid more than once or has been erroneously or
illegally collected or computed, the board shall set forth that fact
in the records of the board and shall certify the amount collected in
excess of the amount legally due and the person from whom it was
collected or by whom paid. The excess amount collected or paid shall
be credited by the board on any amounts then due and payable from the
person from whom the excess amount was collected or by whom it was
paid under this part, and the balance shall be refunded to the
person, or his or her successors, administrators, or executors. Any
proposed determination by the board pursuant to this section with
respect to an amount in excess of fifty thousand dollars ($50,000)
shall be available as a public record for at least 10 days prior to
the effective date of that determination.
SEC. 21. Section 11596 of the Revenue and Taxation Code is amended
to read:
11596. If any amount for taxes, penalty, and interest has been
illegally determined either by the person filing the return or by the
board, the board shall set forth that fact in its records, certify
the amount determined to be in excess of the amount legally due and
the person against whom the determination was made, and authorize the
cancellation of the amount upon the records of the board. Any
proposed determination by the board pursuant to this section with
respect to an amount in excess of fifty thousand dollars ($50,000)
shall be available as a public record for at least 10 days prior to
the effective date of that determination.
SEC. 22. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.
SEC. 23. Notwithstanding Section 2229 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any property tax revenues lost by it
pursuant to this act.
