Bill Text: CA SCA9 | 2015-2016 | Regular Session | Introduced
Bill Title: Property taxation: base year value transfers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SCA9 Detail]
Download: California-2015-SCA9-Introduced.html
BILL NUMBER: SCA 9 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Beall
AUGUST 18, 2015
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending
subdivision (a) of Section 2 of Article XIII A thereof, relating to
taxation.
LEGISLATIVE COUNSEL'S DIGEST
SCA 9, as introduced, Beall. Property taxation: base year value
transfers.
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. The California Constitution authorizes the
Legislature to provide that a severely disabled person and a person
over 55 years of age may transfer the base year value, as defined, of
property that is eligible for the homeowners' property tax exemption
to a replacement dwelling that is of equal or lesser value located
within the same county as the property from which the base year value
is transferred and the replacement dwelling is purchased or newly
constructed within 2 years of the sale of the original property,
subject to certain conditions.
This measure would additionally authorize the Legislature to
provide, commencing with the 2016-17 fiscal year, for the transfer of
base year value to a replacement dwelling that is of greater value,
and would require the base year value of the replacement dwelling to
be calculated by adding the difference between the full cash value of
the original property and the full cash value of the replacement
dwelling to the base year value of the original property.
Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated
local program: no.
Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2015-16 Regular Session
commencing on the first day of December 2014, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California, that the Constitution of the State be
amended as follows:
That subdivision (a) of Section 2 of Article XIII A thereof is
amended to read:
Sec. 2. (a) (1) The "full cash value"
means the county assessor's valuation of real property as shown on
the 1975-76 tax bill under "full cash value" or, thereafter, the
appraised value of real property when purchased, newly constructed,
or a change in ownership has occurred after the 1975 assessment. All
real property not already assessed up to the 1975-76 full cash value
may be reassessed to reflect that valuation. For purposes of this
section, "newly constructed" does not include real property that is
reconstructed after a disaster, as declared by the Governor, where
the fair market value of the real property, as reconstructed, is
comparable to its fair market value prior to the disaster. Also, the
term "newly constructed" does not include the portion of
reconstruction or improvement to a structure, constructed of
unreinforced masonry bearing wall construction, necessary to comply
with any local ordinance relating to seismic safety during the first
15 years following that reconstruction or improvement.
However
(2) However, the Legislature may
provide that, under appropriate circumstances and pursuant to
definitions and procedures established by the Legislature, any person
over the age of 55 years who resides in property that is eligible
for the homeowner's exemption under subdivision (k) of Section 3 of
Article XIII and any implementing legislation may transfer the base
year value of the property entitled to exemption, with the
adjustments authorized by subdivision (b), to
in both of the following circumstances:
(A) To any replacement dwelling
of equal or lesser value located within the same county and purchased
or newly constructed by that person as his or her principal
residence within two years of the sale of the original property.
For
(B) Commencing with the lien date for the 2016-17 fiscal year, to
any replacement dwelling of greater value located within the same
county and purchased or newly constructed by that person as his or
her principal residence within two years of the sale of the original
property. The base year value of the replacement dwelling shall be
calculated by adding the difference between the full cash value of
the original property and the full cash value of the replacement
dwelling to the base year value of the original property.
(3) For purposes of this section,
"any person over the age of 55 years" includes a married couple one
member of which is over the age of 55 years. For purposes of this
section, "replacement 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. For
purposes of this section, a two-dwelling unit shall be considered as
two separate single-family dwellings. This paragraph shall apply to
any replacement dwelling that was purchased or newly constructed on
or after November 5, 1986.
In
(4) In addition, the Legislature
may authorize each county board of supervisors, after consultation
with the local affected agencies within the county's boundaries, to
adopt an ordinance making the provisions of this subdivision relating
to transfer of base year value also applicable to situations in
which the replacement dwellings are located in that county and the
original properties are located in another county within this State.
For purposes of this paragraph, "local affected agency" means any
city, special district, school district, or community college
district that receives an annual property tax revenue allocation.
This paragraph shall apply to any replacement dwelling that was
purchased or newly constructed on or after the date the county
adopted the provisions of this subdivision relating to transfer of
base year value, but shall not apply to any replacement dwelling that
was purchased or newly constructed before November 9, 1988.
The
(5) The Legislature may extend
the provisions of this subdivision relating to the transfer of base
year values from original properties to replacement dwellings of
homeowners over the age of 55 years to severely disabled homeowners,
but only with respect to those replacement dwellings purchased or
newly constructed on or after the effective date of this paragraph.
