Bill Text: CA SB1126 | 2015-2016 | Regular Session | Amended
Bill Title: Property taxation: inflation factor: senior citizens.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SB1126 Detail]
Download: California-2015-SB1126-Amended.html
BILL NUMBER: SB 1126 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 4, 2016
INTRODUCED BY Senator Stone
FEBRUARY 17, 2016
An act to amend Section 51 Sections 51 and
5813 of the Revenue and Taxation Code, relating to taxation,
to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1126, as amended, Stone. Property taxation: inflation factor:
senior citizens.
The California Constitution generally limits ad valorem taxes on
real property to 1% of the full cash value, as defined, of that
property, and provides that the full cash value base may be adjusted
each year by an inflationary rate not to exceed 2% for any given
year. Existing property tax law implementing this constitutional
authority provides that the taxable value of real property is the
lesser of its base year value compounded annually by the inflation
factor not to exceed 2%, as provided, or its full cash value.
Existing property tax law also provides that the taxable value of a
manufactured home is the lesser of its base year value
compounded annually by an inflation factor not to exceed 2%
or its full cash value.
This bill would provide that the inflation factor shall not apply
to the principal place of residence of a "qualified taxpayer,"
defined by the bill to mean a taxpayer person
that owns a dwelling as his or her principal place of residence, or
a person that owns a manufactured home as his or her principal place
of residence, who is 65 years of age or older on the lien
date who meets specified requirements.
By changing the manner in which local tax officials calculate the
taxable value of real property owned by senior citizens, this bill
would impose a state-mandated local program.
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 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.
This bill would take effect immediately as a tax levy.
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 51 of the Revenue and Taxation Code is amended
to read:
51. (a) For purposes of subdivision (b) of Section 2 of Article
XIII A of the California Constitution, for each lien date after the
lien date in which the base year value is determined pursuant to
Section 110.1, the taxable value of real property shall, except as
otherwise provided in subdivision (b) or (c), be the lesser of:
(1) Its base year value, compounded annually since the base year
by an inflation factor, which shall be determined as follows:
(A) For any assessment year commencing prior to January 1, 1985,
the inflation factor shall be the percentage change in the cost of
living, as defined in Section 2212.
(B) For any assessment year commencing after January 1, 1985, and
prior to January 1, 1998, the inflation factor shall be the
percentage change, rounded to the nearest one-thousandth of 1
percent, from December of the prior fiscal year to December of the
current fiscal year in the California Consumer Price Index for all
items, as determined by the California Department of Industrial
Relations.
(C) For any assessment year commencing on or after January 1,
1998, the inflation factor shall be the percentage change, rounded to
the nearest one-thousandth of 1 percent, from October of the prior
fiscal year to October of the current fiscal year in the California
Consumer Price Index for all items, as determined by the California
Department of Industrial Relations.
(D) The percentage increase for any assessment year determined
pursuant to subparagraph (A), (B), or (C) shall not exceed 2 percent
of the prior year's value.
(E) (i) Notwithstanding any other law, for any assessment year
commencing on or after January 1, 2017, the percentage increase for
an assessment year determined pursuant to subparagraph (A), (B), or
(C) shall not apply to the principal place of residence of a
qualified taxpayer.
(ii) For purposes of this subparagraph, both
all of the following shall apply:
(I) "Qualified taxpayer" means a taxpayer
person that owns a dwelling as his or her principal place of
residence who is 65 years of age or older on the lien date
and satisfies either of the following:
(ia) If the qualified taxpayer is single, his or her annual
household income income, as defined in
Section 20504, is twenty-five thousand dollars ($25,000) or
less.
(ib) If the qualified taxpayer is married, his or her combined
annual household income income, as defined in
Section 20504, is fifty thousand dollars ($50,000) or less.
(II) A qualified taxpayer who is 65 years of age or older includes
a married couple, one member of which is 65 years of age or
older. older on the lien date.
(III) When claiming the benefit provided by this subparagraph, the
claimant shall provide all information required by, and answer all
questions contained in, an affidavit furnished by the assessor to
determine that the claimant is a qualified taxpayer. The assessor may
require additional proof of the information or answers provided in
the affidavit before allowing the benefit provided by this
subparagraph.
(2) Its full cash value, as defined in Section 110, as of the lien
date, taking into account reductions in value due to damage,
destruction, depreciation, obsolescence, removal of property, or
other factors causing a decline in value.
(b) If the real property was damaged or destroyed by disaster,
misfortune, or calamity and the board of supervisors of the county in
which the real property is located has not adopted an ordinance
pursuant to Section 170, or any portion of the real property has been
removed by voluntary action by the taxpayer, the taxable value of
the property shall be the sum of the following:
(1) The lesser of its base year value of land determined under
paragraph (1) of subdivision (a) or full cash value of land
determined pursuant to paragraph (2) of subdivision (a).
(2) The lesser of its base year value of improvements determined
pursuant to paragraph (1) of subdivision (a) or the full cash value
of improvements determined pursuant to paragraph (2) of subdivision
(a).
In applying this subdivision, the base year value of the subject
real property does not include that portion of the previous base year
value of that property that was attributable to any portion of the
property that has been destroyed or removed. The sum determined under
this subdivision shall then become the base year value of the real
property until that property is restored, repaired, or reconstructed
or other provisions of law require establishment of a new base year
value.
(c) If the real property was damaged or destroyed by disaster,
misfortune or calamity and the board of supervisors in the county in
which the real property is located has adopted an ordinance pursuant
to Section 170, the taxable value of the real property shall be its
assessed value as computed pursuant to Section 170.
(d) For purposes of this section, "real property" means that
appraisal unit that persons in the marketplace commonly buy and sell
as a unit, or that is normally valued separately.
(e) Nothing in this section shall be construed to require the
assessor to make an annual reappraisal of all assessable property.
However, for each lien date after the first lien date for which the
taxable value of property is reduced pursuant to paragraph (2) of
subdivision (a), the value of that property shall be annually
reappraised at its full cash value as defined in Section 110 until
that value exceeds the value determined pursuant to paragraph (1) of
subdivision (a). In no event shall the assessor condition the
implementation of the preceding sentence in any year upon the filing
of an assessment appeal.
SEC. 2. Section 5813 of the Revenue and
Taxation Code is amended to read:
5813. For (a) For
each lien date after the lien date for which the base year
value is determined, the taxable value of a manufactured home shall
be the lesser of:
(a)
(1) Its base year value, compounded annually since the
base year by an inflation factor, which shall be the percentage
change in the cost of living, as defined in Section 51, provided,
that any percentage increase shall not exceed 2 percent of the prior
year's value; or
(b)
(2) Its full cash value, as defined in Section 5803, as
of the lien date, taking into account reductions in value due to
damage, destruction, depreciation, obsolescence, or other factors
causing a decline in value; or
(c)
(3) If the manufactured home is damaged or destroyed by
disaster, misfortune, or calamity, its value determined pursuant to
(b) paragraph (2) shall be its base
year value until the manufactured home is restored, repaired or
reconstructed or other provisions of law require establishment of a
new base year value.
(b) (1) Notwithstanding any other law, for any assessment year
commencing on or after January 1, 2017, the percentage increase for
an assessment year determined pursuant to paragraph (1) of
subdivision (a) shall not apply to the principal place of residence
of a qualified taxpayer.
(2) For purposes of this subdivision, all of the following shall
apply:
(A) "Qualified taxpayer" means a person that owns a manufactured
home as his or her principal place of residence who is 65 years of
age or older on the lien date and satisfies either of the following:
(i) If the qualified taxpayer is single, his or her annual
household income, as defined in Section 20504, is twenty-five
thousand dollars ($25,000) or less.
(ii) If the qualified taxpayer is married, his or her combined
annual household income, as defined in Section 20504, is fifty
thousand dollars ($50,000) or less.
(B) A qualified taxpayer who is 65 years of age or older includes
a married couple, one member of which is 65 years of age or older on
the lien date.
(C) When claiming the benefit provided by this subdivision, the
claimant shall provide all information required by, and answer all
questions contained in, an affidavit furnished by the assessor to
determine that the claimant is a qualified taxpayer. The assessor may
require additional proof of the information or answers provided in
the affidavit before allowing the benefit provided by this
subdivision.
SEC. 2. SEC. 3. 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.
SEC. 3. SEC. 4. 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.
SEC. 4. SEC. 5. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.
