Bill Text: CA SB1164 | 2023-2024 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Property taxation: new construction exclusion: accessory dwelling units.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-06-24 - June 24 set for first hearing canceled at the request of author. [SB1164 Detail]
Download: California-2023-SB1164-Introduced.html
Bill Title: Property taxation: new construction exclusion: accessory dwelling units.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-06-24 - June 24 set for first hearing canceled at the request of author. [SB1164 Detail]
Download: California-2023-SB1164-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1164
| Introduced by Senator Newman |
February 14, 2024 |
An act to add Section 74.9 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1164, as introduced, Newman.
Property taxation: new construction exclusion: accessory dwelling units.
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.
This bill would exclude from classification as “newly constructed” and “new construction” the construction of an accessory dwelling unit, as defined, until 15 years have passed since construction on the accessory dwelling unit was completed or there is a subsequent change in ownership of the accessory dwelling unit. The bill would require the property owner to, prior to or within 30 days of completion of the project, notify the
assessor that the property owner intends to claim the exclusion for an accessory dwelling unit and submit an affidavit stating that the owner shall make a good faith effort to ensure the unit will be used as residential housing for the duration the owner receives the exclusion. The bill would require the State Board of Equalization to prescribe the manner and form for claiming the exclusion and would require all additional documents necessary to support the exclusion to be filed by the property owner with the assessor not later than 6 months after the completion of the project. Because this bill would require an affidavit by a property owner and a higher level of service from county assessors, it 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 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.
Existing law requires the state 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 those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 74.9 is added to the Revenue and Taxation Code, to read:74.9.
(a) Notwithstanding Section 70 and for purposes of Section 2 of Article XIII A of the California Constitution, “new construction” and “newly constructed” does not include the construction or addition of an accessory dwelling unit.(b) The exclusion provided under this section shall remain in effect only until either of the following occurs:
(1) Fifteen years have passed since construction on the accessory dwelling unit was completed.
(2) There is a subsequent change in ownership of the accessory dwelling unit.
(c) (1) For purposes of
this section, “accessory dwelling unit” means an attached or detached residential dwelling unit that provides complete, independent living facilities for one or more persons and that is located on a lot with a preexisting, single-family or multifamily residential dwelling on the lot. An “accessory dwelling unit” shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel that the single-family or multifamily residential dwelling is located.
(2) An “accessory dwelling unit” includes, but is not limited to, any of the following:
(A) An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code.
(B) A manufactured home, as defined in Section 18007 of the Health and Safety Code.
(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 the property owner intends to claim the exclusion for an accessory dwelling unit and, at the same time, shall submit an affidavit stating that the owner shall make a good faith effort to ensure the unit will be used as residential housing for the duration the owner receives the exclusion under this section. The State Board of Equalization shall prescribe the manner and form for claiming the exclusion. All additional 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) This section applies to new construction completed on or after January 1, 2025.
SEC. 2.
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.
