Bill Text: CA AB2450 | 2015-2016 | Regular Session | Amended

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

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Bill Title: Property taxation.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2016-09-12 - Chaptered by Secretary of State - Chapter 300, Statutes of 2016. [AB2450 Detail]

Download: California-2015-AB2450-Amended.html

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BILL NUMBER: AB 2450	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 2, 2016
	AMENDED IN SENATE  JUNE 15, 2016
	AMENDED IN ASSEMBLY  APRIL 25, 2016
	AMENDED IN ASSEMBLY  APRIL 12, 2016

INTRODUCED BY   Assembly Member Achadjian

                        FEBRUARY 19, 2016

   An act to amend  Sections 402.1 and 5091 of  
Section 5091 of, and to add Section 402.2 to,  the Revenue and
Taxation Code, relating to property tax.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2450, as amended, Achadjian. Property taxation.
   Existing property tax law requires the county assessor to
consider, when valuing real property for property taxation purposes,
the effect of any enforceable restrictions to which the use of the
land may be subjected. Under existing law these restrictions include,
but are not limited to, zoning, recorded contracts with governmental
agencies, and various other restrictions imposed by governments.
   This bill would require contracts with governmental agencies that
restrict the use of the property to owner-occupied housing available
at affordable housing cost to be recorded.  The bill would
provide that this requirement would not prevent the assessor from
considering a contract that restricts the use of the property to
owner-occupied housing available at affordable   housing
cost, including under any locally adopted inclusionary housing
program, for purposes of assessing real property, as provided. 
   The California Constitution exempts from property taxation
property that is owned by the state or, with certain exceptions, by
local governments. Existing property tax law establishes a procedure
by which a public entity may cancel property taxes on property that
it acquires. Under existing law, if a public entity proposes to
acquire property for public use that will make the property exempt
from taxation, the public entity is required to give notice to the
county tax collector and to other public entities whose taxes are not
collected by the county tax collector, as provided.
   This bill would additionally require the public entity to give
notice to the county assessor.
   By adding to the duties of local government officials, this bill
would impose a state-mandated local program.
   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 these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 402.1 of the Revenue and
Taxation Code is amended to read:
   402.1.  (a) In the assessment of land, the assessor shall consider
the effect upon value of any enforceable restrictions to which the
use of the land may be subjected. These restrictions shall include,
but are not limited to, all of the following:
   (1) Zoning.
   (2) Recorded contracts with governmental agencies other than those
provided in Sections 422, 422.5, and 422.7.
   (3) Permit authority of, and permits issued by, governmental
agencies exercising land use powers concurrently with local
governments, including the California Coastal Commission and regional
coastal commissions, the San Francisco Bay Conservation and
Development Commission, and the Tahoe Regional Planning Agency.
   (4) Development controls of a local government in accordance with
any local coastal program certified pursuant to Division 20
(commencing with Section 30000) of the Public Resources Code.
   (5) Development controls of a local government in accordance with
a local protection program, or any component thereof, certified
pursuant to Division 19 (commencing with Section 29000) of the Public
Resources Code.
   (6) Environmental constraints applied to the use of land pursuant
to provisions of statutes.
   (7) Hazardous waste land use restriction pursuant to Section 25226
of the Health and Safety Code.
   (8) (A) A recorded conservation, trail, or scenic easement, as
described in Section 815.1 of the Civil Code, that is granted in
favor of a public agency, or in favor of a nonprofit corporation
organized pursuant to Section 501(c)(3) of the Internal Revenue Code
that has as its primary purpose the preservation, protection, or
enhancement of land in its natural, scenic, historical, agricultural,
forested, or open-space condition or use.
   (B) A recorded greenway easement, as described in Section 816.52
of the Civil Code, that is granted in favor of a public agency, or in
favor of a nonprofit corporation organized pursuant to Section 501
(c)(3) of the Internal Revenue Code that has as its primary purpose
the developing and preserving of greenways.
   (9) A solar-use easement pursuant to Chapter 6.9 (commencing with
Section 51190) of Part 1 of Division 1 of Title 5 of the Government
Code.
   (10) A contract where the following apply:
   (A) The contract is with a nonprofit corporation organized
pursuant to Section 501(c)(3) of the Internal Revenue Code that has
received a welfare exemption under Section 214.15 for properties
intended to be sold to low-income families who participate in a
special no-interest loan program.
   (B) The contract restricts the use of the land for at least 30
years to owner-occupied housing available at affordable housing cost
in accordance with Section 50052.5 of the Health and Safety Code.
   (C) The contract includes a deed of trust on the property in favor
of the nonprofit corporation to ensure compliance with the terms of
the program, which has no value unless the owner fails to comply with
the covenants and restrictions of the terms of the home sale.
   (D) The local housing authority or an equivalent agency, or, if
none exists, the city attorney or county counsel, has made a finding
that the long-term deed restrictions in the contract serve a public
purpose.
   (E) The contract is recorded and provided to the assessor.
   (b) There is a rebuttable presumption that restrictions will not
be removed or substantially modified in the predictable future and
that they will substantially equate the value of the land to the
value attributable to the legally permissible use or uses.
   (c) Grounds for rebutting the presumption may include, but are not
necessarily limited to, the past history of like use restrictions in
the jurisdiction in question and the similarity of sales prices for
restricted and unrestricted land. The possible expiration of a
restriction at a time certain shall not be conclusive evidence of the
future removal or modification of the restriction unless there is no
opportunity or likelihood of the continuation or renewal of the
restriction, or unless a necessary party to the restriction has
indicated an intent to permit its expiration at that time.
   (d) In assessing land with respect to which the presumption is
unrebutted, the assessor shall not consider sales of otherwise
comparable land not similarly restricted as to use as indicative of
value of land under restriction, unless the restrictions have a
demonstrably minimal effect upon value.
   (e) In assessing land under an enforceable use restriction wherein
the presumption of no predictable removal or substantial
modification of the restriction has been rebutted, but where the
restriction nevertheless retains some future life and has some effect
on present value, the assessor may consider, in addition to all
other legally permissible information, representative sales of
comparable lands that are not under restriction but upon which
natural limitations have substantially the same effect as
restrictions.
   (f) Contracts with governmental agencies that restrict the use of
the property to owner-occupied housing available at affordable
housing cost, including under any locally adopted inclusionary
housing program, shall be recorded.
   (g) For the purposes of this section the following definitions
apply:
   (1) "Comparable lands" are lands that are similar to the land
being valued in respect to legally permissible uses and physical
attributes.
   (2) "Representative sales information" is information from sales
of a sufficient number of comparable lands to give an accurate
indication of the full cash value of the land being valued.
   (h) It is hereby declared that the purpose and intent of the
Legislature in enacting this section is to provide for a method of
determining whether a sufficient amount of representative sales
information is available for land under use restriction to ensure the
accurate assessment of that land. It is also hereby declared that
the further purpose and intent of the Legislature in enacting this
section and Section 1630 is to avoid an assessment policy which, in
the absence of special circumstances, considers uses for land that
legally are not available to the owner and not contemplated by
government, and that these sections are necessary to implement the
public policy of encouraging and maintaining effective land use
planning. This statute shall not be construed as requiring the
assessment of any land at a value less than as required by Section
401 or as prohibiting the use of representative comparable sales
information on land under similar restrictions when this information
is available. 
   SECTION 1.    Section 402.2 is added to the 
 Revenue and Taxation Code   , to read:  
   402.2.  Contracts with government agencies restricting the use of
property for owner-occupied housing available at affordable cost
shall be recorded. Nothing in this section shall be construed to
prevent the assessor from considering a contract that restricts the
use of the property to owner-occupied housing available at affordable
housing cost, including under any locally adopted inclusionary
housing program, for purposes of applying Section 402.1 or
subdivision (a) of Section 110. 
  SEC. 2.  Section 5091 of the Revenue and Taxation Code is amended
to read:
   5091.  (a) If a public entity proposes to acquire property for a
public use that will make the property exempt from taxation, the
public entity shall give notice to the county assessor, the county
tax collector, and to any public entities whose taxes are not
collected by the county tax collector but who at the time exercise
the right of assessment and taxation.
   (b) The notice shall be given within a reasonable time following
the initial budgeting of funds for the proposed acquisition, and
shall state all of the following:
   (1) The approximate extent of the proposed project.
   (2) The estimated time of completion of all acquisitions necessary
for the proposed project.
   (c) This section creates no rights or liabilities and does not
affect the validity of any property acquisitions by negotiated
purchase or eminent domain.
  SEC. 3.  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.