Bill Text: CA SB464 | 2011-2012 | Regular Session | Amended
Bill Title: Property taxation: new construction exclusion: fire
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB464 Detail]
Download: California-2011-SB464-Amended.html
BILL NUMBER: SB 464 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 30, 2011
INTRODUCED BY Senator Anderson
FEBRUARY 16, 2011
An act to amend Section 74 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 464, as amended, Anderson. Property taxation: new construction
exclusion: fire protection devices.
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. Pursuant to an authorization in the
California Constitution, existing law excludes from classification as
"newly constructed" the construction or installation of any fire
sprinkler system, other fire extinguishing system, fire detection
system, or fire-related egress improvement that are
is constructed or installed in an existing
building, as specified.
This bill would expand this exclusion to include the construction
or installation of any fire sprinkler system, other fire
extinguishing system, and fire detection system in a new building, as
defined, the construction or installation of which is completed on
or after January 1, 2012. This bill would require the county assessor
to administer this expansion, as provided, and to reduce the base
year value of the new building by the value of the fire sprinkler
system, other fire extinguishing system, and fire detection system,
as specified.
By imposing new duties on county assessors, this bill would impose
a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to the bill.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 74 of the Revenue and Taxation Code is amended
to read:
74. (a) For purposes of subdivision (a) of Section 2 of Article
XIII A of the Constitution, "newly constructed" does not include the
construction or installation of any fire sprinkler system, other fire
extinguishing system, fire detection system, or fire-related egress
improvement that is constructed or installed on or after November 7,
1984.
(b) Notwithstanding any other provision of this chapter or Chapter
3.5 (commencing with Section 75), neither "newly constructed" nor
"new construction" includes the construction or installation of any
fire sprinkler system, other fire extinguishing system, fire
detection system, or fire-related egress improvement that is
constructed or installed on or after November 7, 1984.
(c) For purposes of this section:
(1) "Fire sprinkler system" means any system intended to discharge
water for the purpose of suppressing or extinguishing a fire, and
includes a fire sprinkler system that derives its water from the
domestic water supply of the building or structure of which it is a
part.
(2) "Other fire extinguishing system" means any system intended to
suppress or to extinguish a fire other than by discharging water
upon the fire. An "other fire extinguishing system" includes, but is
not limited to, a component or application that, solely or primarily
for the purposes of fire suppression or extinguishment, is made part
of the heating, ventilating, or air-conditioning system of a building
or structure, a wet chemical system, or a dry chemical system.
(3) "Fire detection system" means any system or appliance intended
to detect combustion, or the products thereof, and to activate an
alarm or signal, whether audio, visual, or otherwise, including all
equipment used to transmit fire alarm activations and related signals
to a remote location. A fire detection system includes any system
that serves additional functions, but this section shall only apply
with respect to that portion of a system that is for fire detection
purposes. No portion of a fire detection system as described in this
paragraph shall be deemed to be personal property, or shall be deemed
to be excluded from that fire detection system, by reason of being
owned or controlled by a person other than the owner of property upon
which the fire detection system was constructed or installed.
(4) "Fire-related egress improvement" means any improvement
intended to do either of the following:
(A) Provide any new, or improve any existing, means of egress for
individuals from a structure, or any portion thereof, in which a fire
is in progress, as to which there is an imminent threat that a fire
may soon be in progress, or as to which individuals therein might be
subjected to health hazards or the risk of physical injury due to a
fire elsewhere.
(B) With respect to individuals who for any reason cannot evacuate
a structure in which a fire is in progress, provide a means of
safeguarding, or increasing the safety of, those individuals until
the time that the rescue of those individuals can be effected.
(5) "Existing building" means any building or structure already
erected at the time that a fire sprinkler system, other fire
extinguishing system, fire detection system, or fire-related egress
improvement is constructed or installed in that building or
structure.
(d) Any system or improvement referred to in this section shall be
deemed to have been constructed or installed on or after November 7,
1984, if the actual construction or installation thereof is
completed on or after November 7, 1984, regardless of when the actual
construction or installation thereof was commenced or any building
permit pertaining thereto was issued.
(e) This section applies only to fire sprinkler systems, other
fire extinguishing systems, fire detection systems, and fire-related
egress improvements, as defined in this section, that are constructed
or installed in an existing building.
(f) (1) Notwithstanding subdivision (e) or any other law, for
purposes of this section, the construction or installation of any
fire sprinkler system, other fire extinguishing system, and fire
detection system includes the construction or installation of any
fire sprinkler system, other fire extinguishing system, and fire
detection system in a new building. The assessor shall administer
this subdivision in the following manner:
(A) The owner of the building shall file a claim with the assessor
and provide the assessor any documents necessary to identify the
value attributable to the fire sprinkler system, other fire
extinguishing system, and fire detection system included in the price
of the new building.
(B) The assessor shall evaluate the claim and determine the
portion of the value of the new building that is attributable to the
fire sprinkler system, other fire extinguishing system, and fire
detection system. The assessor shall then reduce the new base year
value of the new building by an amount equal to that portion of the
value of the new building attributable to the fire sprinkler system,
other fire extinguishing system, and fire detection system.
(2) The extension of the new construction exclusion to a new
building provided by this subdivision shall remain in effect only
until there is a subsequent change in ownership of the new building.
(3) For purposes of this subdivision, all of the following shall
apply:
(A) "New building" means any building, structure, or portion
thereof that is newly constructed upon land or improvements that
were originally constructed prior to January 1, 2011, and
that qualified qualify for reassessment pursuant
to Section 170.
(B) "Owner" means the original owner of property that was
is damaged or destroyed by misfortune or
calamity who was is eligible to apply
for reassessment pursuant to Section 170.
(C) The construction or installation of any fire sprinkler system,
other fire extinguishing system, and fire detection system does not
include the construction or installation of any fire sprinkler
system, other fire extinguishing system, and fire detection system
that is required to be constructed or installed in a nonresidential
new building pursuant to Title 24 of the California Code of
Regulations or any local ordinance.
(4) This subdivision shall only apply to constructions and
installations of fire sprinkler systems, other fire extinguishing
systems, and fire detection systems completed on or after January 1,
2012.
SEC. 2. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any property tax revenues lost by it
pursuant to this act.
SEC. 4. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
