BILL NUMBER: AB 2714	CHAPTERED  08/28/02

	CHAPTER  299
	FILED WITH SECRETARY OF STATE  AUGUST 28, 2002
	APPROVED BY GOVERNOR  AUGUST 28, 2002
	PASSED THE ASSEMBLY  AUGUST 12, 2002
	PASSED THE SENATE  AUGUST 8, 2002
	AMENDED IN SENATE  JUNE 18, 2002
	AMENDED IN ASSEMBLY  MAY 15, 2002
	AMENDED IN ASSEMBLY  MAY 7, 2002

INTRODUCED BY   Assembly Member Aanestad

                        FEBRUARY 22, 2002

   An act to add Section 401.16 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2714, Aanestad.  Property taxation:  valuation.
   Existing law requires that all property that is subject to
property taxation be taxed at its full value.  Existing law requires
the State Board of Equalization to issue to county property tax
assessors data that, in the judgment of the board, will promote
uniformity in appraisal practices and assessed values throughout the
state.
   This bill would require county assessors, who depreciate the
taxable value of tangible personal property or trade fixtures by the
use of percent good factors that include a minimum percent good, to
determine the minimum percent good factors in a supportable manner.
The bill would also prohibit county assessors who depreciate this
property using percent good factors published by the State Board of
Equalization that provide separate factors for property that is first
acquired new and property that is first acquired used, from
averaging the published factors to apply these factors to both
classes of new and used property, unless information reported by a
taxpayer does not indicate whether the property was first acquired
new or used.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 401.16 is added to the Revenue and Taxation
Code, to read:
   401.16.  If, for purposes of property taxation, the county
assessor utilizes the reproduction or replacement cost approach to
value to determine the value of tangible personal property or trade
fixtures, both of the following apply:
   (a) (1) If the county assessor depreciates this property using
percent good factors published by the State Board of Equalization
that provide separate factors for property that is first acquired new
and property that is first acquired used, the assessor may not
average the published factors to apply these factors to both classes
of new and used property.
   (2) Notwithstanding paragraph (1), if information reported by a
taxpayer does not indicate whether this property was first acquired
by the taxpayer new or used, the assessor may average the published
factors.
   (b) If the county assessor depreciates this property using percent
good factors that include a minimum percent good, the minimum
percent good factors shall be determined in a manner that is
supportable.