Bill Text: CA AB2021 | 2021-2022 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Property tax sales: access to tax-defaulted property information.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Engrossed - Dead) 2022-08-11 - In committee: Held under submission. [AB2021 Detail]

Download: California-2021-AB2021-Amended.html

---

Amended  IN  Assembly  March 24, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 2021

---

Introduced by Assembly Member Wicks

February 14, 2022

---

An act to amend Section 170 of Sections 3691, 3692, 3692.4, and 3791 of, and to add Article 4 (commencing with Section 3850) to Chapter 8 of Part 6 of Division 1 of, the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL'S DIGEST

AB 2021, as amended, Wicks. Property tax: reassessment. tax sales: sale to local agency or qualified nonprofit organizations.

Existing law generally authorizes a county tax collector to sell tax-defaulted property 5 or more years after the real property has become tax defaulted. Existing law authorizes a nonprofit organization to purchase residential or vacant property, with the approval of the board of supervisors of the county in which it is located, that has been tax defaulted for 5 years or more, or 3 years or more after the property has become tax defaulted and is subject to a nuisance abatement lien, as long as the property is used for low-income housing or public use, as specified. Existing law defines “nonprofit organization” as a nonprofit public benefit corporation organized for the purpose of the acquisition of either single-family or multifamily dwellings for rehabilitation and sale or rent to low-income persons or for other use to serve low-income persons, or vacant land for construction of residential dwellings and subsequent sale or rent to low-income persons, for other use to serve low-income persons, or for dedication of that vacant land to public use.

This bill would require each tax collector, by July 30 of each year, to prepare a listing of all properties that have been on the tax delinquent role for at least 5 years, or at least 3 years after the property has become tax defaulted and is subject to a nuisance abatement lien. The bill would require the tax collector to notify the city, county, and qualifying nonprofit organizations that the properties on the list are available for purchase for an approved public purpose. The bill would define “qualifying nonprofit organization” as a nonprofit organization that meets specified requirements, including, among others, that it is a community housing development organization or a community land trust. The bill would define “approved public purpose” to include housing for low- or moderate-income persons, supportive housing, supportive services, open space, or any other use that serves low- or moderate-income persons.

This bill would provide an entity that receives the above-described notice the first opportunity to purchase any property included on the list. The bill would require a nonprofit organization that desires to purchase any listed property to notify the tax collector of its interest in writing and submit a proposal to utilize the property for an approved public purpose within an unspecified number of days of receiving the notice. Under the bill, if the tax collector does not receive any interest to purchase a property from the city, county, or a nonprofit organization, the tax collector may proceed with selling the property without further regard to the provisions of the bill.

This bill would require the tax collector to transmit notice to the county board of supervisors if they intend to make a sale under these provisions, as specified. The bill would provide that a sale under these provisions may only take place upon the approval of the county board of supervisors. The bill would require a property that is sold pursuant to these provisions to be sold at a minimum price that includes the delinquent taxes, interest, and penalties applicable to the property, the total amount of any liens, the costs of sale, and any fees imposed pursuant to these provisions. The bill would authorize a tax collector to impose a fee upon a purchasing entity for costs associated with the sale of property, provided that the fee charged does not exceed the reasonable costs imposed on the tax collector to implement a sale under these provisions.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing property tax law authorizes a county board of supervisors to adopt ordinances that allow an assessee whose property was damaged or destroyed to apply for a reassessment of that property, as provided, if certain conditions are met.

This bill would make nonsubstantive changes to that provision.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

---

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 3691 of the Revenue and Taxation Code is amended to read:

3691.

 (a) (1) (A) Five years or more, or three years or more in the case of nonresidential commercial property, after the property has become tax defaulted, the tax collector shall have the power to sell and shall attempt to sell in accordance with Section 3692 all or any portion of tax-defaulted property that has not been redeemed, without regard to the boundaries of the parcels, as provided in this chapter, unless by other provisions of law the property is not subject to sale. Any person, regardless of any prior or existing lien on, claim to, or interest in, the property, may purchase at the sale. In the case of tax-defaulted property that has been damaged by a disaster in an area declared to be a disaster area by local, state, or federal officials and whose damage has not been substantially repaired, the five-year period set forth in this subdivision shall be tolled until five years have elapsed from the date the damage to the property was incurred.

(B) A county may elect, by an ordinance or resolution adopted by a majority vote of its entire governing body, to adopt conditions and procedures for the delay of sale of properties as described in subparagraph (A) that it finds may be eligible to file a property tax postponement claim with the State Controller prior to January 1, 2017, and may cancel any delinquent penalties, costs, fees, and interest associated with these properties.

(C) A county may elect, by an ordinance or resolution adopted by a majority vote of its entire governing body, to have the five-year time period described in subparagraph (A) apply to tax-defaulted nonresidential commercial property.

(D) For purposes of this subdivision, “nonresidential commercial property” means all property except the following:

(i) A constructed single-family or multifamily unit that is intended to be used primarily as a permanent residence, is used primarily as a permanent residence, or that is zoned as a residence, and the land on which that unit is constructed.

(ii) Real property that is used and zoned for producing commercial agricultural commodities.

(2) When a part of a tax-defaulted parcel is sold, the balance continues subject to redemption and shall be separately valued for the purpose of redemption in the manner provided by Chapter 2 (commencing with Section 4131) of Part 7.

(3) (A) The tax collector shall provide notice of an intended sale under this subdivision in the manner prescribed by Sections 3704 and 3704.5 and any other applicable statute. If the intended sale is of nonresidential commercial property that has been tax-defaulted for fewer than five years, all of the following apply:

(i) On or before the notice date, the tax collector shall also mail, in the manner specified in paragraph (1) of subdivision (c) of Section 2924b of the Civil Code, notice containing any information contained in the publication required under Sections 3704 and 3704.5 to, as applicable, all of the following:

(I) The parties specified in paragraph (2) of subdivision (c) of Section 2924b of the Civil Code.

(II) Each taxing agency specified in paragraph (3) of subdivision (c) of Section 2924b of the Civil Code.

(III) Any beneficiary of a deed of trust or a mortgagee of any mortgage recorded against the nonresidential commercial property, and any assignee or vendee of these beneficiaries or mortgagees.

(ii) For purposes of this paragraph:

(I) “Notice date” means a date not less than 45 days nor more than 120 days before an intended sale or not less than 45 days nor more than 120 days before the date upon which the property may be sold.

(II) “Recording date of the notice of default” as used in subdivision (c) of Section 2924b of the Civil Code means a date that is 30 days before the notice date.

(III) “Deed of trust or mortgage being foreclosed” as used in subdivision (c) of Section 2924b of the Civil Code means the defaulted tax lien.

(B) If the property subject to the notice required by this paragraph is the subject of a bankruptcy proceeding, the notice shall constitute a “notice of tax deficiency” pursuant to Section 362(b)(9)(B) of Title 11 of the United States Code.

(b) (1) (A) Three years or more after the property has become tax defaulted and a request has been made by a city, county, city and county, or nonprofit organization pursuant to Section 3692.4, or a request has been made by a person or entity that has recorded a nuisance abatement lien on that property, to offer that property at the next scheduled tax sale, the tax collector shall have the power to sell and may sell all or any portion of tax-defaulted property that has not been redeemed, without regard to the boundaries of parcels, as provided in this chapter at the next scheduled tax sale, unless by other provisions of law the property is not subject to sale. A property shall not be subject to sale until the tax collector has complied with the provisions of Article 4 (commencing with Section 3850) of Chapter 8. Any person, regardless of any prior or existing lien on, claim to, or interest in, the property, may purchase at the sale.

(B) When a part of a tax-defaulted parcel is sold, the balance continues subject to redemption and shall be separately valued for the purpose of redemption in the manner provided by Chapter 2 (commencing with Section 4131) of Part 7.

(2) Before the tax collector sells vacant residential developed property pursuant to this subdivision, actual notice, by certified mail, shall be provided to the property owner, if the property owner’s identity can be determined from the county assessor’s or county recorder’s records. The tax collector’s power of sale shall not be affected by the failure of the property owner to receive notice.

(3) Before the tax collector sells vacant residential developed property pursuant to this subdivision, notice of the sale shall be given in the manner specified by Section 3704.7.

(c) The amendments made to this section by the act adding this subdivision apply to property that becomes tax defaulted on or after January 1, 2005.

SEC. 2.

 Section 3692 of the Revenue and Taxation Code is amended to read:

3692.

 (a) The tax collector shall attempt to sell tax-defaulted property, as provided in this chapter, chapter after complying with Article 4 (commencing with Section 3850) of Chapter 8, within four years of the time that the property becomes subject to sale for nonpayment of taxes unless, by other provisions of law, the property is not subject to sale. If there are no acceptable bids at the attempted sale, the tax collector shall attempt to sell the property at intervals of no more than six years until the property is sold.

(b) When oil, gas, or mineral rights are subject to sale for nonpayment of taxes, the tax collector may offer the interest at minimum bid to the holders of outstanding interests where the interest subject to sale is a partial interest or, where the interest subject to sale is a complete and undivided interest, to the owner or owners of the property to which the oil, gas, or mineral rights are appurtenant.

(c) When parcels that are rendered unusable by their size, location, or other conditions are subject to sale for nonpayment of taxes, the tax collector may offer the parcel, at a minimum bid, to owners of contiguous parcels or to a holder of record of either a predominant easement or a right-of-way easement. If the parcel is sold to a contiguous property owner, the tax collector shall require that the successful bidder request the assessor and the planning director to combine the unusable parcel with the bidder’s own parcel as a condition of sale.

(d) Sealed bid sale procedures shall be used when offers are made pursuant to subdivision (b) or subdivision (c), and the property shall be sold to the highest eligible bidder. The offers shall remain in effect for 30 days or until notice is given pursuant to Section 3702, whichever is later.

(e) The Notice to the Board of Supervisors and Notice of Intended Sale of Tax-Defaulted Property shall indicate that any parcel remaining unsold may be reoffered within a 90-day period and any new parties of interest shall be notified in accordance with Section 3701. This subdivision does not apply to properties sold pursuant to Chapter 8 (commencing with Section 3771).

SEC. 3.

 Section 3692.4 of the Revenue and Taxation Code is amended to read:

3692.4.

 (a) Notwithstanding any other provision of law, any county, city, city and county, or any nonprofit organization as defined in Section 3772.5, may request the tax collector to bring to the next scheduled public auction any residential real property that meets all of the following requirements:

(1) The property taxes have been delinquent for at least three years.

(2) The real property will serve the public benefit of providing housing directly related to low-income persons.

(3) The real property is not occupied by the owner as his or her their principal place of residence.

(4) The tax collector has complied with Article 4 (commencing with Section 3850) of Chapter 8 with regards to the property.

(b) Every request submitted to the tax collector shall include the following:

(1) A formal resolution of the governing board of the county, city, city and county, or nonprofit organization, requesting the accelerated auction of the real property and stating the public benefit.

(2) A written plan for the development, rehabilitation, or proposed use of the real property and how low-income persons will be served.

(c) Upon receiving a request as provided by this section, the tax collector shall include the real property in the next scheduled public auction.

(d) (1) If the real property is acquired by a nonprofit organization at auction, a deed restriction shall be placed on the real property, requiring the real property to be used for low-income housing for a period of at least 30 years.

(2) (A) In lieu of the 30-year restriction required by paragraph (1), the deed may provide for equity sharing upon resale, if the real property is a single-family home that will be sold by the nonprofit organization to a low-income owner-occupant.

(B) To the extent not in conflict with another public funding source or law, all of the following shall apply to an equity-sharing agreement provided for by the deed:

(i) Upon resale by an owner-occupant of the home, the owner-occupant of the home shall retain the market value of any improvements, the downpayment, and his or her their proportionate share of appreciation. The nonprofit organization shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used for the purpose of providing financial assistance to low-income homebuyers.

(ii) For purposes of this subdivision, the initial subsidy shall be equal to the fair market value of the home at the time of initial sale to the low-income owner-occupant minus the initial sale price to the low-income owner-occupant, plus the amount of any downpayment assistance or mortgage assistance. If upon resale by the owner-occupant the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value.

(iii) For purposes of this subdivision, the nonprofit organization’s proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of initial sale.

(e) This section may not be construed to preclude the application, to the real property or the current owners of that property, of any other provision of law not in conflict with this section.

SEC. 4.

 Section 3791 of the Revenue and Taxation Code is amended to read:

3791.

 Whenever property tax defaulted for five years or more, or three years or more in the case of nonresidential commercial property, as defined in Section 3691, in an applicable county, has been sold for taxes for two or more years or has been deeded for taxes to a taxing agency other than the state, the governing body of the taxing agency may, as provided in this article, article after complying with Article 4 (commencing with Section 3850), make an agreement with the board of supervisors of the county in which the property is situated for the purchase of, or for an option to purchase, all or any of the tax-defaulted property or any part thereof including a right-of-way or other easement. When a part of a tax-defaulted parcel is sold the balance continues subject to redemption, if the right of redemption has not been terminated, and shall be separately valued for the purpose of redemption in the manner provided by Chapter 2 (commencing with Section 4131) of Part 7 of this division, except that no application need be made.

SEC. 5.

 Article 4 (commencing with Section 3850) is added to Chapter 8 of Part 6 of Division 1 of the Revenue and Taxation Code, to read:

Article  4. Sale to Local Agency or Qualified Nonprofit Organizations

3850.

 For purposes of this article:

(a) “Affordable rent” means the same as defined in Section 50053 of the Health and Safety Code.

(b) (1) For property that is vacant or has no existing residential use, “approved public purpose” means any of the following:

(A) Housing for low- or moderate- income persons.

(B) Supportive housing.

(C) Supportive services.

(D) Open space for public use.

(E) Open space for use for the production of food sold for the benefit of the community in which it is situated.

(F) Any other use that serves low- or moderate-income persons.

(2) For residential property that is not occupied by the owner as their principal place of residence, “approved public purpose” means any of the following:

(A) Housing for low- or moderate-income persons.

(B) Supportive housing.

(C) Supportive services.

(c) “Local agency” means both of the following:

(1) The county.

(2) The city where the property is located, if applicable.

(d) “Low- or moderate- income persons” means persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code.

(e) “Nonprofit organization” means the same as defined in Section 3772.5.

(f) “Supportive housing” means the same as defined in Section 50675.14 of the Health and Safety Code.

(g) “Supportive services” means the same as defined in subdivision (h) of Section 65582 of the Government Code.

(h) (1) If the proposed approved public purpose is housing for low- or moderate- income persons, supportive housing, supportive services, or other uses that serve low- or moderate-income persons, “qualifying nonprofit organization” means a nonprofit organization that meets one of the following:

(A) The nonprofit organization is a community housing development organization, as described in Section 92.300 of Title 24 of the Code of Federal Regulations.

(B) The nonprofit organization is a community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1.

(C) The nonprofit organization is included on the list developed by the Department of Housing and Community Development established pursuant to subdivision (a) of Section 54222 of the Government Code and meets all of the following criteria:

(i) It has a letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.

(ii) It is based in California

(iii) Its primary activity is the development and preservation of affordable rental or homeownership housing in California.

(iv) It has developed deed-restricted affordable rental or homeownership housing in California.

(2) If the proposed approved public purpose is for open space for public use, “qualifying nonprofit organization” means a nonprofit organization.

(3) If the proposed approved public purpose is open space for use for the production of food sold for the benefit of the community, “qualifying nonprofit organization” means a nonprofit organization with the primary purpose of transforming vacant land into productive food-producing land for local residents to procure, and creates local training and equitable employment opportunities in food production.

3851.

 (a) By July 30 of each year, each tax collector shall prepare a listing of all properties that have been on the tax delinquent role for at least five years, or at least three years after the property has become tax defaulted, and are subject to a nuisance abatement lien, as described in Section 3791.4.

(b) The tax collector shall notify each local agency and qualifying nonprofit organization that the properties on the list are available for purchase for an approved public purpose, pursuant to this article.

3852.

 (a) Notwithstanding any other provision of this part, a local agency and any qualifying nonprofit organization that receives notice pursuant to Section 3851 shall receive the first opportunity to purchase any property included on the list before the property is offered for sale pursuant to Chapter 7 (commencing with Section 3691) or sold to any entity pursuant to Article 2 (commencing with Section 3791) of this chapter.

(b) (1) A qualifying nonprofit organization that desires to purchase any listed property shall notify in writing the tax collector of its interest to purchase the property and submit a proposal to utilize the property for an approved public purpose within __ days of the tax collector sending notice pursuant to subdivision (b) of Section 3851.

(2) If multiple entities submit a proposal for a property pursuant to paragraph (1), the tax collector shall give first priority to the entity or entities that agree to use the site for housing subject to the following:

(A) The county’s housing department or another housing-related entity designated by the county shall approve the feasibility of the plans to rehabilitate or develop the property. First priority shall be given to an entity with a plan deemed feasible pursuant to this subparagraph.

(B) If multiple entities that agree to use the site for housing submit plans that are deemed feasible pursuant to subparagraph (A), then the tax collector shall give priority to the entity that proposes to provide the greatest number of units for low- or moderate-income persons.

(C) In the event that multiple entities propose the same number of units for low- or moderate-income persons pursuant to subparagraph (B), priority shall be given to the entity that proposes the deepest average level of affordability.

(3) If the tax collector does not receive any interest from a local agency or a qualifying nonprofit organization to purchase a property pursuant to subparagraph (1), the tax collector may proceed with selling the property without further regard to this section.

(4) If a property cannot be sold at an auction, the tax collector may reoffer the property to a local agency or a qualifying nonprofit organization at a price below fair market value, subject to approval by the county board of supervisors, and city council if the property is located within a city, provided that the local agency or qualifying nonprofit organization agrees to utilize the property for an approved public purpose.

(c) In the case of a proposal to develop affordable rental housing by a nonprofit organization pursuant to subdivision (b), the nonprofit organization shall propose to hold the property in a manner so that it will be exempt from taxation pursuant to the welfare exemption established in subdivision (a) of Section 214.

(d) If a qualifying nonprofit organization purchases a property pursuant to this section, both of the following shall apply:

(1) If the qualifying nonprofit fails to make reasonable progress towards developing and using the property for the stated approved public purpose within three years from the date the sale is finalized, the sale shall be rescinded by the county board of supervisors pursuant to the procedures described in Section 3731. Any property that is the subject of a sale rescinded pursuant to this paragraph shall be reoffered to local agencies and qualifying nonprofit organizations pursuant to this section.

(2) If the approved public purpose includes housing units, the county shall ensure that a qualified entity, which may be the county’s housing department or another housing-related entity designated by the county, conducts ongoing monitoring of the housing affordability and occupancy requirements recorded in the deed restriction.

(e) (1) Except as provided in paragraph (2), a property purchased by an entity pursuant to this section shall be sold at a minimum price that shall consist of all of the following:

(A) The delinquent taxes, interest, and penalties applicable to the property.

(B) The total amount of the liens described in Section 3712.

(C) The costs of the sale.

(D) The fee imposed pursuant to Section 3853.

(2) If the minimum price calculated pursuant to paragraph (1) exceeds the fair market value, as determined by the county assessor, then the price shall be reduced to the fair market value following approval by the county board of supervisors and approval by the city council, if the property is located within a city, to reduce the price.

(f) All of the following information shall be provided to an entity that notifies the treasurer-tax collector of their interest in purchasing the property pursuant to subdivision (b):

(1) Any and all liens for the property, as determined by an independent title report.

(2) An estimate of the fair market value of the property, as determined by the county assessor.

3853.

 The tax collector may charge a fee to a purchasing entity for costs associated with the sale of property pursuant to this chapter, including the monitoring required under paragraph (2) of subdivision (d) of Section 3852 and the information provided under subdivision (f) of Section 3852. The fee charged pursuant to this section shall not exceed the reasonable costs imposed on the tax collector to implement a sale pursuant to this chapter.

3854.

 (a) A property sold pursuant to this article with an approved public purpose of providing multifamily housing units for rent to low- or moderate-income persons shall be subject to a recorded affordability restriction requiring the property to be provided at affordable rent with any supported services included in the entity’s proposal submitted pursuant to subdivision (b) of Section 3852 for at least 55 years.

(b) A property sold pursuant to this article with an approved public purpose of providing for ownership units to low- or moderate-income persons shall be subject to a recorded affordability restriction ensuring the continued affordability of the units for at least 30 years.

(c) If the property being purchased is occupied by a tenant and the entity proposes to demolish the property or otherwise displace the existing tenant, the entity shall comply with the requirements of subdivision (d) of Section 66300 of the Government Code.

3855.

 (a) Before making a sale under this article, the tax collector shall transmit a notice to the board of supervisors that states all of the following:

(1) The tax collector’s intention to make a sale pursuant to this article.

(2) A description of the property to be sold.

(3) The entity or entities that submitted notice of intent to purchase the property pursuant to subdivision (b) of Section 3852.

(4) The minimum price to purchase the property calculated pursuant to subdivision (e) of Section 3852.

(b) On receipt of the notice described in subdivision (a), the board of supervisors shall by resolution either approve or disapprove the proposed sale and shall transmit a certified copy of the resolution to the tax collector within five days after its action. Failure to adopt or to transmit the resolution within the prescribed time shall not affect the validity of a sale approved by a board of supervisors.

(c) A sale under this article shall take place only if approved by the county board of supervisors.

(d) The terms and conditions of any conveyance to a qualified nonprofit organization pursuant to this section shall be consistent with this article and be specified in the deed or other instrument of conveyance.

3856.

 The provisions of this chapter shall apply to any sale made under this article to the extent that they do not conflict with the requirements of this article.

SEC. 6.

 If the Commission on State Mandates determines that this act contains 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.

SECTION 1.Section 170 of the Revenue and Taxation Code is amended to read:

170.

(a)Notwithstanding any other law, the board of supervisors, by ordinance, may provide that every assessee of any taxable property, or any person liable for the taxes thereon, whose property was damaged or destroyed without that person’s fault, may apply for reassessment of that property as provided in this section. The ordinance may also specify that the assessor may initiate the reassessment if the assessor determines that within the preceding 12 months taxable property located in the county was damaged or destroyed.

To be eligible for reassessment the damage or destruction to the property shall have been caused by any of the following:

(1)A major misfortune or calamity, in an area or region subsequently proclaimed by the Governor to be in a state of disaster, if that property was damaged or destroyed by the major misfortune or calamity that caused the Governor to proclaim the area or region to be in a state of disaster. As used in this paragraph, “damage” includes a diminution in the value of property as a result of restricted access to the property where that restricted access was caused by the major misfortune or calamity.

(2)A misfortune or calamity.

(3)A misfortune or calamity that, with respect to a possessory interest in land owned by the state or federal government, has caused the permit or other right to enter upon the land to be suspended or restricted. As used in this paragraph, “misfortune or calamity” includes a drought condition such as existed in this state in 1976 and 1977.

The application for reassessment may be filed within the time specified in the ordinance or within 12 months of the misfortune or calamity, whichever is later, by delivering to the assessor a written application requesting reassessment showing the condition and value, if any, of the property immediately after the damage or destruction, and the dollar amount of the damage. The application shall be executed under penalty of perjury, or if executed outside the State of California, verified by affidavit.

An ordinance may be made applicable to a major misfortune or calamity specified in paragraph (1) or to any misfortune or calamity specified in paragraph (2), or to both, as the board of supervisors determines. An ordinance shall not be made applicable to a misfortune or calamity specified in paragraph (3), unless an ordinance making paragraph (2) applicable is operative in the county. The ordinance may specify a period of time within which the ordinance shall be effective, and, if no period of time is specified, it shall remain in effect until repealed.

(b)Upon receiving a proper application, the assessor shall appraise the property and determine separately the full cash value of land, improvements and personalty immediately before and after the damage or destruction. If the sum of the full cash values of the land, improvements and personalty before the damage or destruction exceeds the sum of the values after the damage by ten thousand dollars ($10,000) or more, the assessor shall also separately determine the percentage reductions in value of land, improvements and personalty due to the damage or destruction. The assessor shall reduce the values appearing on the assessment roll by the percentages of damage or destruction computed pursuant to this subdivision, and the taxes due on the property shall be adjusted as provided in subdivision (e). However, the amount of the reduction shall not exceed the actual loss.

(c)(1)As used in this subdivision, “board” means either the county board of supervisors acting as the county board of equalization, or an assessment appeals board established by the county board of supervisors in accordance with Section 1620, as applicable.

(2)The assessor shall notify the applicant in writing of the amount of the proposed reassessment. The notice shall state that the applicant may appeal the proposed reassessment to the board within six months of the date of mailing the notice. If an appeal is requested within the six-month period, the board shall hear and decide the matter as if the proposed reassessment had been entered on the roll as an assessment made outside the regular assessment period. The decision of the board regarding the damaged value of the property shall be final, provided that a decision of the board regarding any reassessment made pursuant to this section shall create no presumption as regards the value of the affected property subsequent to the date of the damage.

(3)Those reassessed values resulting from reductions in full cash value of amounts, as determined above, shall be forwarded to the auditor by the assessor or the clerk of the board, as the case may be. The auditor shall enter the reassessed values on the roll. After being entered on the roll, those reassessed values shall not be subject to review, except by a court of competent jurisdiction.

(d)(1)If no application is made and the assessor determines that within the preceding 12 months a property has suffered damage caused by misfortune or calamity that may qualify the property owner for relief under an ordinance adopted under this section, the assessor shall provide the last known owner of the property with an application for reassessment. The property owner shall file the completed application within 12 months after the occurrence of that damage. Upon receipt of a properly completed, timely filed application, the property shall be reassessed in the same manner as required in subdivision (b).

(2)This subdivision does not apply where the assessor initiated reassessment as provided in subdivision (a) or (l).

(e)The tax rate fixed for property on the roll on which the property so reassessed appeared at the time of the misfortune or calamity, shall be applied to the amount of the reassessment as determined in accordance with this section and the assessee shall be liable for: (1) a prorated portion of the taxes that would have been due on the property for the current fiscal year had the misfortune or calamity not occurred, to be determined on the basis of the number of months in the current fiscal year prior to the misfortune or calamity; plus, (2) a proration of the tax due on the property as reassessed in its damaged or destroyed condition, to be determined on the basis of the number of months in the fiscal year after the damage or destruction, including the month in which the damage was incurred. For purposes of applying the preceding calculation in prorating supplemental taxes, the term “fiscal year” means that portion of the tax year used to determine the adjusted amount of taxes due pursuant to subdivision (b) of Section 75.41. If the damage or destruction occurred after January 1 and before the beginning of the next fiscal year, the reassessment shall be utilized to determine the tax liability for the next fiscal year. However, if the property is fully restored during the next fiscal year, taxes due for that year shall be prorated based on the number of months in the year before and after the completion of restoration.

(f)Any tax paid in excess of the total tax due shall be refunded to the taxpayer pursuant to Chapter 5 (commencing with Section 5096) of Part 9, as an erroneously collected tax or by order of the board of supervisors without the necessity of a claim being filed pursuant to Chapter 5.

(g)The assessed value of the property in its damaged condition, as determined pursuant to subdivision (b) compounded annually by the inflation factor specified in subdivision (a) of Section 51, shall be the taxable value of the property until it is restored, repaired, reconstructed or other provisions of the law require the establishment of a new base year value.

If partial reconstruction, restoration, or repair has occurred on any subsequent lien date, the taxable value shall be increased by an amount determined by multiplying the difference between its factored base year value immediately before the calamity and its assessed value in its damaged condition by the percentage of the repair, reconstruction, or restoration completed on that lien date.

(h)(1)When the property is fully repaired, restored, or reconstructed, the assessor shall make an additional assessment or assessments in accordance with subparagraph (A) or (B) upon completion of the repair, restoration, or reconstruction:

(A)If the completion of the repair, restoration, or reconstruction occurs on or after January 1, but on or before May 31, then there shall be two additional assessments. The first additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value on the current roll. The second additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value to be enrolled on the roll being prepared.

(B)If the completion of the repair, restoration, or reconstruction occurs on or after June 1, but before the succeeding January 1, then the additional assessment shall be the difference between the new taxable value as of the date of completion and the taxable value on the current roll.

(2)On the lien date following completion of the repair, restoration, or reconstruction, the assessor shall enroll the new taxable value of the property as of that lien date.

(3)For purposes of this subdivision, “new taxable value” shall mean the lesser of the property’s (A) full cash value, or (B) factored base year value or its factored base year value as adjusted pursuant to subdivision (c) of Section 70.

(i)The assessor may apply Chapter 3.5 (commencing with Section 75) of Part 0.5 in implementing this section, to the extent that chapter is consistent with this section.

(j)This section applies to all counties, whether operating under a charter or under the general laws of this state.

(k)Any ordinance in effect pursuant to former Section 155.1, 155.13, or 155.14 shall remain in effect according to its terms as if that ordinance was adopted pursuant to this section, subject to the limitations of subdivision (b).

(l)When the assessor does not have the general authority pursuant to subdivision (a) to initiate reassessments, if no application is made and the assessor determines that within the preceding 12 months a property has suffered damage caused by misfortune or calamity, that may qualify the property owner for relief under an ordinance adopted under this section, the assessor, with the approval of the board of supervisors, may reassess the particular property for which approval was granted as provided in subdivision (b) and notify the last known owner of the property of the reassessment.