Bill Text: CA SB1494 | 2009-2010 | Regular Session | Amended
Bill Title: Taxation.
Spectrum: Bipartisan Bill
Status: (Passed) 2010-09-30 - Chaptered by Secretary of State. Chapter 654, Statutes of 2010. [SB1494 Detail]
Download: California-2009-SB1494-Amended.html
BILL NUMBER: SB 1494 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 21, 2010
INTRODUCED BY Committee on Revenue and Taxation (Senators Wolk
(Chair), Alquist, Ashburn, Padilla, and Walters)
MARCH 15, 2010
An act to amend Sections 17280.1 and 17280.2 of the
Government Code, to amend Section 42463 of the Public
Resources Code, to amend Sections 61, 63.1, 69.5, 218, 401.10,
1604, 4831, and 5096 5096, 41030, 41031,
41032, 41136.1, 41137, 41137.1, 41138, 41139, 41140, 41141, 41142,
45855, 45863, 45981, and 45982 of, and to repeal Sections
1624.3, 1636.2, and 1636.5 of, the Revenue and Taxation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1494, as amended, Committee on Revenue and Taxation.
Property taxation. Taxation.
(1) Existing law permits a taxpayer who has a tax liability with
respect to personal income taxes or bank and corporation taxes, and
who is a payee named in a registered warrant to pay the tax
liability, in whole or in part, by a check in an amount not to exceed
the amount of the registered warrant, and prohibits the check from
being drawn until the registered warrant is payable, if the check is
accompanied by a copy of the warrant. Existing law requires, when a
tax liability is paid with a registered warrant that is redeemable at
the time of payment, that interest be credited to the taxpayer's
account.
This bill would revise and recast these provisions. This bill
would permit a taxpayer who has a tax liability, with respect to
personal income taxes or bank and corporation taxes required to be
remitted to the Franchise Tax Board or a taxpayer, feepayer, or
surcharge payer who has a liability for taxes, fees, or surcharges
required to be remitted to the State Board of Equalization, and who
is a payee named in a registered warrant to pay any tax, fee, or
surcharge liability with a registered warrant, subject to certain
conditions. The bill would prohibit the taxpayer, feepayer, or
surcharge payer submitting a registered warrant from receiving
interest on his or her registered warrant, except as a credit to his
or her account.
(1)
(2) 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. For purposes of
these provisions, existing law specifies that taxable real property
has changed ownership when that property is leased for 35 years or
more, including renewal options. Existing law conclusively presumes
that all homes that are eligible for the homeowners' exemption, other
than specified manufactured homes and floating homes, and that are
on leased land are under a lease that have a renewal option of at
least 35 years.
This bill would make technical, nonsubstantive changes to this
provision.
(2)
(3) The California Constitution excludes from a "change
in ownership" specified 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 includes as a transfer, the transfer of a present beneficial
ownership of property through the medium of a trust. Existing law
requires those seeking this exclusion to file a claim with the county
assessor. The claim is not a public document, but may be inspected
by the transferee and the transferor or their respective spouse,
transferor's or the transferee's legal representative, and the
executor or administrator of the transferee's or transferor's estate.
This bill would authorize the trustee of the transferee's trust to
file a claim with the assessor and to furnish a written
certification, as provided, and would further authorize the trustee
of the transferee's or transferor's trust to inspect the claim.
(3)
(4) The California Constitution and existing property
tax law authorize taxpayers to transfer the base year value, as
defined, of property to replacement property, if the claimant, who is
a person claiming the property tax relief, meets certain conditions.
Existing law also authorizes the coowner of the original property,
as a joint tenant, a tenant in common, or a community property owner,
to claim the property tax relief, as provided. Existing law
generally defines a person to be an individual.
This bill would clarify that the term "person" includes an
individual who is the present beneficiary of a trust and that a
coowner includes a present beneficiary of a trust.
(4)
(5) Existing property tax law provides, pursuant to a
specified provision of the California Constitution, for a homeowners'
property tax exemption in the amount of $7,000 of the full value of
a "dwelling," as defined.
This bill would clarify that a dwelling that is damaged in a
misfortune or calamity is not disqualified from receiving the
homeowners' exemption, if certain conditions are met. This bill would
clarify that a dwelling that does not exist on the lien date because
it has been totally destroyed is disqualified from receiving the
homeowner's exemption until the structure has been replaced and is
occupied as a dwelling.
This bill would also delete provisions providing that dwellings
destroyed by specified disasters for which the Governor proclaimed a
state of emergency are not disqualified from receiving the exemption,
and would replace them with a general provision.
(5)
(6) Existing property tax law requires any property,
not exempted from taxation by federal law or pursuant to the
California Constitution, to be assessed at its full cash value.
Existing law also establishes a rebuttable presumption of valuation
at full value, provided certain conditions are met, for each taxable
year from the 1984-85 tax year to the 2010-11 tax year, inclusive,
for intercounty pipeline rights-of-way on publicly or privately owned
property.
This bill would extend the application of this rebuttable
presumption to the 2015-16 fiscal year.
(6)
(7) Existing law requires county boards to meet to
equalize the assessment of property on the local roll, as provided,
and authorizes a taxpayer to apply to a county assessment appeals
board for an assessment reduction under a variety of circumstances,
including for a reduction of the base year value, as defined, of real
property. Existing property tax law requires that the taxpayer's
opinion of value, as reflected on a timely filed application for
reduction in an assessment of property, be the basis for the
calculation of property taxes, where the county assessment appeals
board has failed to hear evidence and make a final determination on
that application within either 2 years of the filing of that
application or an extension of that 2-year period. Existing law
requires that the taxpayer's opinion of value be the basis for taxing
the property described in the application for all succeeding tax
years until the board acts upon the application, as provided.
Existing law defines "county board" for purposes of this provision to
mean a county board of supervisors meeting as a county board of
equalization or an assessment appeals board.
This bill would replace the term "county assessment appeals board"
with the term "county board" and would replace the terms "taxpayer"
and "taxpayer's" with the terms "applicant" and "applicant's." This
bill would also make other technical, nonsubstantive changes to this
provision.
(7)
(8) Existing law prohibits a current member of an
assessment appeals board, any alternate members of an assessment
appeals board, or a hearing officer from representing an applicant
for compensation on any application for equalization in the county in
which the board member, the alternate member, or the hearing officer
serves. Existing law requires a hearing officer to notify the clerk
immediately upon filing an application on his or her own behalf, or
upon his or her decision to represent his or her spouse, parent, or
child in an assessment appeal, and requires the clerk to schedule the
matter before an alternate assessment appeals board.
This bill would repeal those provisions.
(8)
(9) Existing property tax law allows the correction of
certain errors resulting in incorrect entries on the property tax
roll, as provided.
This bill would make clarifying revisions to this provision, and
would make other technical, nonsubstantive changes.
(9)
(10) Existing law requires property taxes to be
refunded if, among other circumstances, the taxes were paid on an
assessment in excess of the equalized value of the property as
determined pursuant to a specified statute by the county board of
equalization.
This bill would change an obsolete statutory reference in this
provision.
(11) Existing law, the Governor's Reorganization Plan No. 1 of
2009, transferred duties of the Division of Telecommunications in the
Department of General Services to the office of the State Chief
Information Officer, including duties related to implementing revenue
generating procedures for the 911 emergency telephone system.
Existing law abolished the California Integrated Waste Management
Board and transferred specified duties of that board to the
Department of Resources Recycling and Recovery, including duties
related to electronic waste.
This bill would make specific conforming changes to reflect the
transfer of these duties.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17280.1 of the
Government Code is amended to read:
17280.1. (a) A taxpayer who has a tax liability, including any
liability for periodic estimated tax payments, with respect to
personal income taxes or bank and corporation taxes required to
be remitted to the Franchise Tax Board or a taxpayer, feepayer, or
surcharge payer who has a liability for taxes, fees, or surcharges
required to be remitted to the State Board of Equalization ,
and who is a payee named in a registered warrant as defined in
Section 17221 which is received in payment of an obligation of the
State of California to the taxpayer, feepayer, or surcharge
payer may pay any tax , fee, or surcharge
liability specified above, in whole or in part, by a check
in an amount not to exceed the amount of the registered warrant,
exclusive of any interest thereon. That check shall not be presented
for payment by the state or paid by the bank on which it is drawn
until the registered warrant payable to the taxpayer is payable upon
its presentation to the Treasurer. The provisions of this section
shall be applicable only if the taxpayer's check in payment of a tax
liability pursuant to this section is accompanied by a copy of the
registered warrant, as specified above, which clearly discloses the
name of the payee, the amount to be paid, the number of the warrant,
and the completed and signed legend as provided for in subdivision
(d) submitting the original registered warrant, signed
on the reverse side by the payee and endorsed as payable to the
agency to which the liability is owed .
(b) Any taxpayer , feepayer, or surcharge payer
submitting a check registered warrant
for the payment of taxes pursuant to subdivision (a) shall be
precluded from receiving interest on his or her registered warrant
from the date the check for the payment of taxes is
submitted except as provided in Section 17280.2 .
(c) In the event that a taxpayer who submits a check for the
payment of taxes pursuant to subdivision (a) presents his or her
registered warrant to a bank or other institution for payment, the
taxpayer shall make a declaration upon presentment that he or she is
ineligible pursuant to subdivision (b) to receive interest from the
date he or she submitted the check.
(d) To facilitate the taxpayer in making the declaration required
by subdivision (c), all registered warrants issued shall bear a
legend on the reverse side in substantially the following form:
""In endorsing this warrant, I declare that I
have ( ) or have not ( )
(check one) submitted a check on _________________
(date)
for the payment of tax liability in an amount not
to exceed the
amount of this warrant. I further declare that
by submitting that
check, I am ineligible for the receipt of
interest on this warrant after
the above date.''
SEC. 2. Section 17280.2 of the
Government Code is amended to read:
17280.2. In the event a tax , fee, or surcharge
liability is paid pursuant to Section 17280.1 , in whole
or in part, with a registered warrant which is redeemable at the time
the tax , fee, or surcharge liability is paid, interest
as specified in this article, shall be credited to the
taxpayer's account or the taxpayer, feepayer, or
surcharge pa yer .
SEC. 3. Section 42463 of the Public
Resources Code is amended to read:
42463. For the purposes of this chapter, the following terms have
the following meanings, unless the context clearly requires
otherwise:
(a) "Account" means the Electronic Waste Recovery and Recycling
Account created in the Integrated Waste Management Fund under Section
42476.
(b) "Authorized collector" means any of the following:
(1) A city, county, or district that collects covered electronic
devices.
(2) A person or entity that is required or authorized by a city,
county, or district to collect covered electronic devices pursuant to
the terms of a contract, license, permit, or other written
authorization.
(3) A nonprofit organization that collects or accepts covered
electronic devices.
(4) A manufacturer or agent of the manufacturer that collects,
consolidates, and transports covered electronic devices for recycling
from consumers, businesses, institutions, and other generators.
(5) An entity that collects, handles, consolidates, and transports
covered electronic devices and has filed applicable notifications
with the department pursuant to Chapter 23 (commencing with Section
66273.1) of Division 4.5 of Title 22 of the California Code of
Regulations.
(c) "Board" means the California Integrated Waste Management
Board.
(d)
(c) "Consumer" means a person who purchases a new or
refurbished covered electronic device in a transaction that is a
retail sale or in a transaction to which a use tax applies pursuant
to Part 1 (commencing with Section 6001) of Division 2 of the Revenue
and Taxation Code.
(e)
(d) "Department" means the Department of Toxic
Substances Control.
(f)
(e) (1) Except as provided in paragraph (2), "covered
electronic device" means a video display device containing a screen
greater than four inches, measured diagonally, that is identified in
the regulations adopted by the department pursuant to subdivision (b)
of Section 25214.10.1 of the Health and Safety Code.
(2) "Covered electronic device" does not include any of the
following:
(A) A video display device that is a part of a motor vehicle, as
defined in Section 415 of the Vehicle Code, or any component part of
a motor vehicle assembled by, or for, a vehicle manufacturer or
franchised dealer, including replacement parts for use in a motor
vehicle.
(B) A video display device that is contained within, or a part of
a piece of industrial, commercial, or medical equipment, including
monitoring or control equipment.
(C) A video display device that is contained within a clothes
washer, clothes dryer, refrigerator, refrigerator and freezer,
microwave oven, conventional oven or range, dishwasher, room
air-conditioner, dehumidifier, or air purifier.
(D) An electronic device, on and after the date that it ceases to
be a covered electronic device under subdivision (e) of Section
25214.10.1 of the Health and Safety Code.
(g)
(f) "Covered electronic waste" or "covered e-waste"
means a covered electronic device that is discarded.
(h)
(g) "Covered electronic waste recycling fee" or
"covered e-waste recycling fee" means the fee imposed pursuant to
Article 3 (commencing with Section 42464).
(i)
(h) "Covered electronic waste recycler" or "covered
e-waste recycler" means any of the following:
(1) A person who engages in the manual or mechanical separation of
covered electronic devices to recover components and commodities
contained therein for the purpose of reuse or recycling.
(2) A person who changes the physical or chemical composition of a
covered electronic device, in accordance with the requirements of
Chapter 6.5 (commencing with Section 25100) of Division 20 of the
Health and Safety Code and the regulations adopted pursuant to that
chapter, by deconstructing, size reduction, crushing, cutting,
sawing, compacting, shredding, or refining for purposes of
segregating components, for purposes of recovering or recycling those
components, and who arranges for the transport of those components
to an end user.
(3) A manufacturer who meets any conditions established by this
chapter and Chapter 6.5 (commencing with Section 25100) of Division
20 of the Health and Safety Code for the collection or recycling of
covered electronic waste.
(j)
(i) "Discarded" has the same meaning as defined in
subdivision (b) of Section 25124 of the Health and Safety Code.
(k)
(j) "Electronic waste recovery payment" means an amount
established and paid by the board pursuant to Section 42477.
(l)
(k) "Electronic waste recycling payment" means an
amount established and paid by the board pursuant to Section 42478.
(m)
(l) "Hazardous material" has the same meaning as
defined in Section 25501 of the Health and Safety Code.
(n)
(m) "Manufacturer" means either of the following:
(1) A person who manufactures a covered electronic device sold in
this state.
(2) A person who sells a covered electronic device in this state
under that person's brand name.
(o)
(n) "Person" means an individual, trust firm, joint
stock company, business concern, and corporation, including, but not
limited to, a government corporation, partnership, limited liability
company, and association. Notwithstanding Section 40170, "person"
also includes a city, county, city and county, district, commission,
the state or a department, agency, or political subdivision thereof,
an interstate body, and the United States and its agencies and
instrumentalities to the extent permitted by law.
(p)
(o) "Recycling" has the same meaning as defined in
subdivision (a) of Section 25121.1 of the Health and Safety Code.
(q)
(p) "Refurbished," when used to describe a covered
electronic device, means a device that the manufacturer has tested
and returned to a condition that meets factory specifications for the
device, has repackaged, and has labeled as refurbished.
(r)
(q) "Retailer" means a person who makes a retail sale
of a new or refurbished covered electronic device. "Retailer"
includes a manufacturer of a covered electronic device who sells that
covered electronic device directly to a consumer through any means,
including, but not limited to, a transaction conducted through a
sales outlet, catalog, or the Internet, or any other similar
electronic means.
(s)
(r) (1) "Retail sale" has the same meaning as defined
under Section 6007 of the Revenue and Taxation Code.
(2) "Retail sale" does not include the sale of a covered
electronic device that is temporarily stored or used in California
for the sole purpose of preparing the covered electronic device for
use thereafter solely outside the state, and that is subsequently
transported outside the state and thereafter used solely outside the
state.
(t)
(s) "Vendor" means a person that makes a sale of a
covered electronic device for the purpose of resale to a retailer who
is the lessor of the covered electronic device to a consumer under a
lease that is a continuing sale and purchase pursuant to Part 1
(commencing with Section 6001) of Division 2 of the Revenue and
Taxation Code.
(u)
(t) "Video display device" means an electronic device
with an output surface that displays, or is capable of displaying,
moving graphical images or a visual representation of image sequences
or pictures, showing a number of quickly changing images on a screen
in fast succession to create the illusion of motion, including, if
applicable, a device that is an integral part of the display, in that
it cannot be easily removed from the display by the consumer, that
produces the moving image on the screen. A video display device may
use, but is not limited to, a cathode ray tube (CRT), liquid crystal
display (LCD), gas plasma, digital light processing, or other image
projection technology.
SECTION 1. SEC. 4. Section 61 of the
Revenue and Taxation Code is amended to read:
61. Except as otherwise provided in Section 62, change in
ownership, as defined in Section 60, includes, but is not limited to:
(a) The creation, renewal, sublease, assignment, or other transfer
of the right to produce or extract oil, gas, or other minerals
regardless of the period during which the right may be exercised. The
balance of the property, other than the mineral rights, shall not be
reappraised pursuant to this section.
(b) The creation, renewal, extension, or assignment of a taxable
possessory interest in tax exempt real property for any term. For
purposes of this subdivision:
(1) "Renewal" and "extension" do not include the granting of an
option to renew or extend an existing agreement pursuant to which the
term of possession of the existing agreement would, upon exercise of
the option, be lengthened, whether the option is granted in the
original agreement or subsequent thereto.
(2) Any "renewal" or "extension" of a possessory interest during
the reasonably anticipated term of possession used by the assessor to
value that interest does not cause a change in ownership until the
end of the reasonably anticipated term of possession used by the
assessor to value that interest. At the end of the reasonably
anticipated term of possession used by the assessor, a new base year
value, based on a new reasonably anticipated term of possession,
shall be established for the possessory interest.
(3) "Assignment" of a possessory interest means the transfer of
all rights held by a transferor in a possessory interest.
(c) (1) (A) The creation of a leasehold interest in taxable real
property for a term of 35 years or more (including renewal options).
(B) The termination of a leasehold interest in taxable real
property which had an original term of 35 years or more (including
renewal options).
(C) Any transfer of a leasehold interest having a remaining term
of 35 years or more (including renewal options).
(D) Any transfer of a lessor's interest in taxable real property
subject to a lease with a remaining term (including renewal options)
of less than 35 years.
(2) Only that portion of a property subject to that lease or
transfer shall be considered to have undergone a change in ownership.
(3) For the purpose of this subdivision, for 1979-80 and each year
thereafter, it shall be conclusively presumed that all homes
eligible for the homeowners' exemption, other than manufactured homes
located on rented or leased land and subject to taxation pursuant to
Part 13 (commencing with Section 5800) and floating homes subject to
taxation pursuant to Section 229, that are on leased land have a
renewal option of at least 35 years on the lease of that land,
whether or not in fact that renewal option exists in any contract or
agreement.
(d) (1) (A) A sublease of a taxable possessory interest in
tax-exempt real property for a term, including renewal options, that
exceeds half the length of the remaining term of the leasehold,
including renewal options.
(B) The termination of a sublease of a taxable possessory interest
in tax-exempt property with an original term, including renewal
options, that exceeds half the length of the remaining term of the
leasehold, including renewal options.
(C) Any transfer of a sublessee's interest with a remaining term,
including renewal options, that exceeds half of the remaining term of
the leasehold.
(2) Any transfer of a possessory interest in tax-exempt real
property subject to a sublease with a remaining term, including
renewal options, that does not exceed half the remaining term of the
leasehold, including renewal options.
(e) The creation, transfer, or termination of any joint tenancy
interest, except as provided in subdivision (f) of Section 62, and in
Section 63 and Section 65.
(f) The creation, transfer, or termination of any
tenancy-in-common interest, except as provided in subdivision (a) of
Section 62 and in Section 63.
(g) Any vesting of the right to possession or enjoyment of a
remainder or reversionary interest that occurs upon the termination
of a life estate or other similar precedent property interest, except
as provided in subdivision (d) of Section 62 and in Section 63.
(h) Any interests in real property that vest in persons other than
the trustor (or, pursuant to Section 63, his or her spouse) when a
revocable trust becomes irrevocable.
(i) The transfer of stock of a cooperative housing corporation,
vested with legal title to real property that conveys to the
transferee the exclusive right to occupancy and possession of that
property, or a portion thereof. A "cooperative housing corporation"
is a real estate development in which membership in the corporation,
by stock ownership, is coupled with the exclusive right to possess a
portion of the real property.
(j) The transfer of any interest in real property between a
corporation, partnership, or other legal entity and a shareholder,
partner, or any other person.
SEC. 2. SEC. 5. 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.
(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. 3. SEC. 6. 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) 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 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 it sustains
physical damage amounting to more than 50 percent of its 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 30
days 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.
SEC. 4. SEC. 7. Section 218 of the
Revenue and Taxation Code is amended to read:
218. (a) The homeowners' property tax exemption is in the amount
of the assessed value of the dwelling specified in this section, as
authorized by subdivision (k) of Section 3 of Article XIII of the
California Constitution. That exemption shall be in the amount of
seven thousand dollars ($7,000) of the full value of the dwelling.
(b) (1) The exemption does not extend to property that is rented,
vacant, under construction on the lien date, or that is a vacation or
secondary home of the owner or owners, nor does it apply to property
on which an owner receives the veteran's exemption.
(2) Notwithstanding paragraph (1), if a person receiving the
exemption is not occupying the dwelling on the lien date because the
dwelling was damaged in a misfortune or calamity, the person shall be
deemed to occupy that same dwelling as his or her principal place of
residence on the lien date, provided the person's absence from the
dwelling is temporary and the person intends to return to the
dwelling when possible to do so. Except as provided in paragraph (3),
when a dwelling has been totally destroyed, and thus no dwelling
exists on the lien date, the exemption provided by this section shall
not be applicable until the structure has been replaced and is
occupied as a dwelling.
(3) A dwelling that was totally destroyed in a disaster for which
the Governor proclaimed a state of emergency, that qualified for the
exemption provided by this section prior to the commencement date of
the disaster and that has not changed ownership since the
commencement date of the disaster, shall be deemed occupied by the
person receiving the exemption on the lien date provided the person
intends to reconstruct a dwelling on the property and occupy the
dwelling as his or her principal place of residence when it is
possible to do so.
(c) For purposes of this section, all of the following apply:
(1) "Owner" includes a person purchasing the dwelling under a
contract of sale or who holds shares or membership in a cooperative
housing corporation, which holding is a requisite to the exclusive
right of occupancy of a dwelling.
(2) (A) "Dwelling" means a building, structure, or other shelter
constituting a place of abode, whether real property or personal
property, and any land on which it may be situated. A two-dwelling
unit shall be considered as two separate single-family dwellings.
(B) "Dwelling" includes the following:
(i) A single-family dwelling occupied by an owner thereof as his
or her principal place of residence on the lien date.
(ii) A multiple-dwelling unit occupied by an owner thereof on the
lien date as his or her principal place of residence.
(iii) A condominium occupied by an owner thereof as his or her
principal place of residence on the lien date.
(iv) Premises occupied by the owner of shares or a membership
interest in a cooperative housing corporation, as defined in
subdivision (i) of Section 61, as his or her principal place of
residence on the lien date. Each exemption allowed pursuant to this
subdivision shall be deducted from the total assessed valuation of
the cooperative housing corporation. The exemption shall be taken
into account in apportioning property taxes among owners of share or
membership interests in the cooperative housing corporations so as to
benefit those owners who qualify for the exemption.
(d) The exemption provided for in subdivision (k) of Section 3 of
Article XIII of the California Constitution shall first be applied to
the building, structure, or other shelter and the excess, if any,
shall be applied to any land on which it may be located.
SEC. 5. SEC. 8. Section 401.10 of
the Revenue and Taxation Code is amended to read:
401.10. (a) Notwithstanding any other provision of law relating
to the determination of the values upon which property taxes are
based, values for each tax year from the 1984-85 tax year to the
2015-16 tax year, inclusive, for intercounty pipeline rights-of-way
on publicly or privately owned property, including those
rights-of-way that are the subject of a change in ownership, new
construction, or any other reappraisable event during the period from
March 1, 1975, to June 30, 2016, inclusive, shall be rebuttably
presumed to be at full cash value for that year, if all of the
following conditions are met:
(1) (A) The full cash value is determined to equal a 1975-76 base
year value, annually adjusted for inflation in accordance with
subdivision (b) of Section 2 of Article XIII A of the California
Constitution, and the 1975-76 base year value was determined in
accordance with the following schedule:
(i) Twenty thousand dollars ($20,000) per mile for a high density
property.
(ii) Twelve thousand dollars ($12,000) per mile for a transitional
density property.
(iii) Nine thousand dollars ($9,000) per mile for a low density
property.
(B) For purposes of this section, the density classifications
described in subparagraph (A) are defined as follows:
(i) "High density" means Category 1 (densely urban) as established
by the State Board of Equalization.
(ii) "Transitional density" means Category 2 (urban) as
established by the State Board of Equalization.
(iii) "Low density" means Category 3 (valley-agricultural),
Category 4 (grazing), and Category 5 (mountain and desert) as
established by the State Board of Equalization.
(2) The full cash value is determined utilizing the same property
density classifications that were assigned to the property by the
State Board of Equalization for the 1984-85 tax year or, if density
classifications were not so assigned to the property for the 1984-85
tax year, the density classifications that were first assigned to the
property by the board for a subsequent tax year.
(3) (A) If a taxpayer owns multiple pipelines in the same
right-of-way, an additional 50 percent of the value attributed to the
right-of-way for the presence of the first pipeline, as determined
under paragraphs (1) and (2), shall be added for the presence of each
additional pipeline up to a maximum of two additional pipelines. For
any particular taxpayer, the total valuation for a multiple pipeline
right-of-way shall not exceed 200 percent of the value determined
for the right-of-way of the first pipeline in the right-of-way in
accordance with paragraphs (1) and (2).
(B) If the State Board of Equalization has determined that an
intercounty pipeline, located within a multiple pipeline right-of-way
previously valued in accordance with subparagraph (A), has been
abandoned as a result of physical removal or blockage, the assessed
value of the right-of-way attributable to the last pipeline enrolled
in accordance with subparagraph (A) shall be reduced by not less that
75 percent of that increase in assessed value that resulted from the
application of subparagraph (A).
(4) If all pipelines of a taxpayer located within the same
pipeline right-of-way, previously valued in accordance with this
section, are determined by the State Board of Equalization to have
been abandoned as the result of physical removal or blockage, the
assessed value of that right-of-way to that taxpayer shall be
determined to be no more than 25 percent of the assessed value
otherwise determined for the right-of-way for a single pipeline of
that taxpayer pursuant to paragraphs (1) and (2).
(b) If the assessor assigns values for any tax year from the
1984-85 tax year to the 2015-16 tax year, inclusive, in accordance
with the methodology specified in subdivision (a), the taxpayer's
right to assert any challenge to the right to assess that property,
whether in an administrative or judicial proceeding, shall be deemed
to have been raised and resolved for that tax year and the values
determined in accordance with that methodology shall be rebuttably
presumed to be correct. If the assessor assigns values for any tax
year from the 1984-85 tax year to the 2015-16 tax year, inclusive, in
accordance with the methodology specified in subdivision (a), any
pending taxpayer lawsuit that challenges the right to assess the
property shall be dismissed by the taxpayer with prejudice as it
applies to intercounty pipeline rights-of-way.
(c) Notwithstanding any change in ownership, new construction, or
decline in value occurring after March 1, 1975, if the assessor
assigns values for rights-of-way for any tax year from the 1984-85
tax year to the 2015-16 tax year, inclusive, in accordance with the
methodology specified in subdivision (a), the taxpayer may not
challenge the right to assess that property and the values determined
in accordance with that methodology shall be rebuttably presumed to
be correct for that property for that tax year.
(d) Notwithstanding any change in ownership, new construction, or
decline in value occurring after March 1, 1975, if the assessor does
not assign values for rights-of-way for any tax year from the 1984-85
tax year to the 2015-16 tax year, inclusive, at the 1975-76 base
year values specified in subdivision (a), any assessed value that is
determined on the basis of valuation standards that differ, in whole
or in part, from those valuation standards set forth in subdivision
(a) shall not benefit from any presumption of correctness, and the
taxpayer may challenge the right to assess that property or the
values for that property for that tax year. As used herein, a
challenge to the right to assess shall include any assessment appeal,
claim for refund,
or lawsuit asserting any right, remedy, or cause of action relating
to or arising from, but not limited to, the following or similar
contentions:
(1) That the value of the right-of-way is included in the value of
the underlying fee or railroad right-of-way.
(2) That assessment of the value of the right-of-way to the owner
of the pipeline would result in double assessment.
(3) That the value of the right-of-way may not be assessed to the
owner of the pipeline separately from the assessment of the value of
the underlying fee.
(e) Notwithstanding any other provision of law, during a four-year
period commencing on January 1, 1996, the assessor may issue an
escape assessment in accordance with the specific valuation standards
set forth in subdivision (a) for the following taxpayers and tax
years:
(1) Any intercounty pipeline right-of-way taxpayer who was a
plaintiff in Southern Pacific Pipe Lines, Inc. v. State Board of
Equalization (1993) 14 Cal. App. 4th 42, for the tax years 1984-85 to
1996-97, inclusive.
(2) Any intercounty pipeline right-of-way taxpayer who was not a
plaintiff in Southern Pacific Pipe Lines, Inc. v. State Board of
Equalization (1993) 14 Cal. App. 4th 42, for the tax years 1989-90 to
1996-97, inclusive.
(f) Any escape assessment levied under subdivision (e) shall not
be subject to penalties or interest under the provisions of Section
532. If payment of any taxes due under this section is made within 45
days of demand by the tax collector for payment, the county shall
not impose any late payment penalty or interest. Taxes not paid
within 45 days of demand by the tax collector shall become delinquent
at that time, and the delinquent penalty, redemption penalty, or
other collection provisions of this code shall thereafter apply.
(g) For purposes of this section, "intercounty pipeline
right-of-way" means, except as otherwise provided in this
subdivision, any interest in publicly or privately owned real
property through which or over which an intercounty pipeline is
placed. However, "intercounty pipeline right-of-way" does not include
any parcel or facility that the State Board of Equalization
originally separately assessed using a valuation method other than
the multiplication of pipeline length within a subject property by a
unit value determined in accordance with the density category of that
subject property.
(h) This section shall remain in effect only until January 1,
2016, and, as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 6. SEC. 9. Section 1604 of the
Revenue and Taxation Code is amended to read:
1604. (a) (1) In counties of the first class, annually, on the
fourth Monday in September, the county board shall meet to equalize
the assessment of property on the local roll. It shall continue to
meet for that purpose, from time to time, until the business of
equalization is disposed of.
(2) In all other counties, annually, on the third Monday in July,
the county board shall meet to equalize the assessment of property on
the local roll. It shall continue to meet for that purpose, from
time to time, until the business of equalization is disposed of.
(b) (1) An application for a reduction in an assessment filed
pursuant to Section 1603 shall also constitute a sufficient claim for
refund, if the applicant states in the application that the
application is also intended to constitute a claim for refund
pursuant to the provisions of Section 5097.
(2) The county board shall have no power to receive or hear any
application for a reduction in an escaped assessment made pursuant to
Section 531.1 nor a penal assessment levied in respect thereto, nor
to reduce those assessments.
(c) If the county board fails to hear evidence and fails to make a
final determination on the application for reduction in assessment
of property within two years of the timely filing of the application,
the applicant's opinion of value as reflected on the application for
reduction in assessment shall be the value upon which taxes are to
be levied for the tax year or tax years covered by the application,
unless either of the following occurs:
(1) The applicant and the county board mutually agree in writing,
or on the record, to an extension of time for the hearing.
(2) The application for reduction is consolidated for hearing with
another application by the same applicant with respect to which an
extension of time for the hearing has been granted pursuant to
paragraph (1). In no case shall the application be consolidated
without the applicant's written agreement after the two-year time
period has passed or after an extension of the two-year time period
previously agreed to by the applicant has expired.
The reduction in assessment reflecting the applicant's opinion of
value shall not be made, however, until two years after the close of
the filing period during which the timely application was filed.
Further, this subdivision shall not apply to applications for
reductions in assessments of property where the applicant has failed
to provide full and complete information as required by law or where
litigation is pending directly relating to the issues involved in the
application.
(d) (1) When the applicant's opinion of value, as stated on the
application, has been placed on the assessment roll pursuant to
subdivision (c), and the application requested a reduction in the
base year value of an assessment, the applicant's opinion of value
shall remain on the roll until the county board makes a final
determination on the application. The value so determined by the
county board, plus appropriate adjustments for the inflation factor,
shall be entered on the assessment roll for the fiscal year in which
the value is determined. No increased or escape taxes other than
those required by a purchase, change in ownership, or new
construction, or resulting from application of the inflation factor
to the applicant's opinion of value shall be levied for the tax years
during which the county board failed to act.
(2) When the applicant's opinion of value has been placed on the
assessment roll pursuant to subdivision (c) for any application other
than an application requesting a reduction in base year value, the
applicant's opinion of value shall be enrolled on the assessment roll
for the tax year or tax years covered by that application.
(e) The county board shall notify the applicant in writing of any
decision by that board not to hold a hearing on his or her
application for reduction in assessment within the two-year period
specified in subdivision (c). This notice shall also inform the
applicant that the applicant's opinion of value as reflected on the
application for reduction in assessment shall, as a result of the
county board's failure to hold a hearing within the prescribed time
period, be the value upon which taxes are to be levied in the absence
of the application of either paragraph (1) or (2) of subdivision
(c).
SEC. 7. SEC. 10. Section 1624.3 of
the Revenue and Taxation Code is repealed.
SEC. 8. SEC. 11. Section 1636.2 of
the Revenue and Taxation Code is repealed.
SEC. 9. SEC. 12. Section 1636.5 of
the Revenue and Taxation Code is repealed.
SEC. 10. SEC. 13. 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 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. 11. SEC. 14. Section 5096 of the
Revenue and Taxation Code is amended to read:
5096. Any taxes paid before or after delinquency shall be
refunded if they were:
(a) Paid more than once.
(b) Erroneously or illegally collected.
(c) Illegally assessed or levied.
(d) Paid on an assessment in excess of the ratio of assessed value
to the full value of the property as provided in Section 401 by
reason of the assessor's clerical error or excessive or improper
assessments attributable to erroneous property information supplied
by the assessee.
(e) Paid on an assessment of improvements when the improvements
did not exist on the lien date.
(f) Paid on an assessment in excess of the equalized value of the
property as determined pursuant to Section 1610.8 by the county board
of equalization.
(g) Paid on an assessment in excess of the value of the property
as determined by the assessor pursuant to Section 469.
SEC. 15. Section 41030 of the Revenue
and Taxation Code is amended to read:
41030. The Department of General Services
office of the State Chief Information Officer shall determine
annually, on or before October 1, a surcharge rate that it estimates
will produce sufficient revenue to fund the current fiscal year's 911
costs. The surcharge rate shall be determined by dividing the costs
(including incremental costs) the Department of General Services
estimates for the current fiscal year of 911 plans approved pursuant
to Section 53115 of the Government Code, less the available balance
in the State Emergency Telephone Number Account in the General Fund,
by its estimate of the charges for intrastate telephone
communications services and VoIP service to which the surcharge will
apply for the period of January 1 to December 31, inclusive, of the
next succeeding calendar year, but in no event shall such surcharge
rate in any year be greater than three-quarters of 1 percent nor less
than one-half of 1 percent.
SEC. 16. Section 41031 of the Revenue
and Taxation Code is amended to read:
41031. The Department of General Services
office of the State Chief Information Officer shall make its
determination of such surcharge rate each year no later than October
1 and shall notify the board of the new rate, which shall be fixed by
the board to be effective with respect to charges made for
intrastate telephone communication services and VoIP service on or
after January 1 of the next succeeding calendar year.
SEC. 17. Section 41032 of the Revenue
and Taxation Code is amended to read:
41032. Immediately upon notification by the Department
of General Services office of the State Chief
Information Officer and fixing the surcharge rate, the board
shall each year no later than November 15 publish in its minutes the
new rate, and it shall notify by mail every service supplier
registered with it of the new rate.
SEC. 18. Section 41136.1 of the Revenue
and Taxation Code is amended to read:
41136.1. For each fiscal year, moneys in the State Emergency
Telephone Number Account not appropriated for a purpose specified in
Section 41136 shall be held in trust for future appropriation for
upcoming, planned "911" emergency telephone number projects that have
been approved by the Department of General Services
office of the State Chief Information Officer ,
even if the projects have not yet commenced.
SEC. 19. Section 41137 of the Revenue
and Taxation Code is amended to read:
41137. The Department of General Services
office of the State Chief Information Officer shall pay, from
funds appropriated from the State Emergency Telephone Number Account
by the Legislature, as provided in Section 41138, bills submitted by
service suppliers or communications equipment companies for the
installation and ongoing costs of the following communication
services provided local agencies by service suppliers in connection
with the "911" emergency telephone number system:
(a) A basic system.
(b) A basic system with telephone central office identification.
(c) A system employing automatic call routing.
(d) Approved incremental costs that have been concurred in by the
Communications Division office of the State
Chief Information Officer .
SEC. 20. Section 41137.1 of the Revenue
and Taxation Code is amended to read:
41137.1. The Department of General Services
office of the State Chief Information Officer shall pay,
from funds appropriated from the State Emergency Telephone Number
Account by the Legislature, as provided in Section 41138, claims
submitted by local agencies for approved incremental costs and for
the cost of preparation of final plans submitted to the
Communications Division office of the State Chief
Information Officer for approval on or before October 1, 1978,
as provided in Section 53115 of the Government Code.
SEC. 21. Section 41138 of the Revenue
and Taxation Code is amended to read:
41138. (a) It is the intent of the Legislature that the
reimbursement rates for "911" emergency telephone number equipment
shall not exceed specified amounts negotiated with each interested
supplier and approved by the department. The department
office of the State Chief Information Officer. The
office of the State Chief Information Officer shall negotiate
supplier pricing to ensure cost effectiveness and the best value for
the "911" emergency telephone number system. The department
office of the State Chief Information Officer
shall pay those bills as provided in Section 41137 only under the
following conditions:
(1) The department office of the State
Chief Information Officer shall have received the local agency'
s "911" emergency telephone number system plan by July 1 of the prior
fiscal year and approved the plan by October 1 of the prior fiscal
year.
(2) The Legislature has appropriated in the Budget Bill an amount
sufficient to pay those bills.
(3) The department office of the State
Chief Information Officer has reviewed and approved each line
item of a request for funding to ensure the necessity of the proposed
equipment or services and the eligibility for reimbursement.
(4) The amounts to be paid do not exceed the pricing submitted by
the supplier and approved by the department
office of the State Chief Information Officer . Extraordinary
circumstances may warrant spending in excess of the established rate,
but shall be preapproved by the department
office of the State Chief Information Officer . In determining
the reimbursement rate, the department office
of the State Chief Information Officer shall utilize the
approved pricing submitted by the supplier providing the equipment or
service.
(b) Nothing in this section shall be construed to limit an agency'
s ability to select a supplier or procure telecommunications
equipment as long as the supplier's pricing is preapproved by the
department office of the State Chief
Information Officer . Agencies shall be encouraged to procure
equipment on a competitive basis. Any amount in excess of the pricing
approved by the department office of the
State Chief Information Officer shall not be reimbursed.
SEC. 22. Section 41139 of the Revenue
and Taxation Code is amended to read:
41139. From funds appropriated by the Legislature from the
Emergency Telephone Number Account, the department
office of the State Chief Information Officer shall begin
paying such bills as provided in Sections 41137, 41137.1, and 41138
in the 1977-78 fiscal year for plans submitted by local agencies by
July 1, 1976 to the department which the department
office of the State Chief Information Officer which
the office of the State Chief Information Officer has approved.
SEC. 23. Section 41140 of the Revenue
and Taxation Code is amended to read:
41140. The Department of General Service
office of the State Chief Information Officer shall reimburse
local agencies, from funds appropriated from the Emergency Telephone
Number Account by the Legislature, for amounts not previously
compensated for by another governmental agency, which have been paid
by such agencies for approved incremental costs or to service
suppliers or communication equipment companies for the following
communications services supplied in connection with the "911"
emergency phone number, provided such local agency plans had been
approved by the department office of the
State Chief Information Officer :
(1)
(a) A basic system.
(2)
(b) A basic system with telephone central office
identification.
(3)
(c) A system employing automatic call routing.
(4)
(d) Approved incremental costs.
SEC. 24. Section 41141 of the Revenue
and Taxation Code is amended to read:
41141. Claims for reimbursement shall be submitted by local
agencies to the Communications Division in the Department of
General Services office of the State Chief
Information Officer , which shall determine payment eligibility
and shall reduce the claim for charges which exceed the approved
incremental costs, approved contract amounts, or the established
tariff rates for such costs. No claim shall be paid until funds are
appropriated by the Legislature.
SEC. 25. Section 41142 of the Revenue
and Taxation Code is amended to read:
41142. Notwithstanding any other provision of this article, if
the Legislature fails to appropriate an amount sufficient to pay
bills submitted to the Department of General Services
office of the State Chief Information Officer by
service suppliers or communications equipment companies for the
installation and ongoing communications services supplied local
agencies in connection with the "911" emergency phone number system,
and to pay claims of local agencies which, prior to the effective
date of this part, paid amounts to service suppliers or
communications equipment companies for the installation and ongoing
expenses in connection with the "911" emergency phone number system,
the obligation of service suppliers and local agencies to provide
"911" emergency telephone service shall terminate and such service
shall not again be required until the Legislature has appropriated an
amount sufficient to pay such bills or claims. Nothing in this part
shall preclude local agencies from purchasing or acquiring any
communication equipment from companies other than the telephone
service suppliers.
SEC. 26. Section 45855 of the Revenue
and Taxation Code is amended to read:
45855. Any information regarding solid wastes which is available
to the board shall be made available to the California
Integrated Waste Management Board Department of
Resources Recycling and Recovery .
SEC. 27. Section 45863 of the Revenue
and Taxation Code is amended to read:
45863. The board shall, in cooperation with the
California Integrated Waste Management Board
Department of Resources Recycling and Recovery , the Taxpayers'
Rights Advocate, and other interested taxpayer-oriented groups,
develop a plan to reduce the time required to resolve petitions for
redetermination and claims for refunds. The plan shall include the
determination of standard timeframes and special review of cases
which take more time than the appropriate standard timeframe.
SEC. 28. Section 45981 of the Revenue
and Taxation Code is amended to read:
45981. (a) The board shall provide any information obtained under
this part to the California Integrated Waste Management
Board Department of Resources Recycling and Recovery
.
(b) The California Integrated Waste Management Board
Department of Resources Recycling and Recovery
and the board may utilize any information obtained pursuant to this
part to develop data on the generation or disposal of solid waste
within the state. Notwithstanding any other provision of this
chapter, the California Integrated Waste Management Board
Department of Resources Recycling and Recovery
may make waste generation and disposal data available to the public.
SEC. 29. Section 45982 of the Revenue
and Taxation Code is amended to read:
45982. Neither the California Integrated Waste
Management Board Department of Resources Recycling and
Recovery , nor any person having an administrative duty under
Part 9 (commencing with Section 15600) of Division 3 of Title 2 of
the Government Code shall disclose the business affairs, operations,
or any other proprietary information pertaining to a fee payer,
except a fee payer which is a public agency, which was submitted to
the board in a report or return required by this part, or permit any
report or copy thereof or any book containing any abstract or
particulars thereof to be seen or examined by any person not
expressly authorized by Section 45981 or this section. However, the
Governor may, by general or special order, authorize examination of
the records maintained by the board under this part by other state
officers, by officers of another state, by the federal government if
a reciprocal arrangement exists, or by any other person. The
information so obtained pursuant to the order of the Governor shall
not be made public except to the extent and in the manner that the
order may authorize that it be made public.
