BILL NUMBER: SB 2092	CHAPTERED  09/21/02

	CHAPTER  775
	FILED WITH SECRETARY OF STATE  SEPTEMBER 21, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2002
	PASSED THE SENATE  AUGUST 22, 2002
	PASSED THE ASSEMBLY  AUGUST 20, 2002
	AMENDED IN ASSEMBLY  JUNE 19, 2002
	AMENDED IN ASSEMBLY  JUNE 10, 2002
	AMENDED IN SENATE  APRIL 8, 2002

INTRODUCED BY   Committee on Revenue and Taxation (Senators Scott
(Chair), Alpert, Bowen, and Burton)

                        MARCH 6, 2002

   An act to amend Sections 62, 62.1, 62.2, 63.1, 69.5, 75.51, 75.55,
172, 172.1, 181, 194, 197, 237, 254, 270, 271, 276, 276.1, 441,
441.5, 480.4, 482, 531.1, 755, 756, 1603, 2611.6, 5801, 5802, 5803,
5811, 5812, 5813, 5831, and 7205.1 of, to amend the heading of
Chapter 2.6 (commencing with Section 172) of Part 1 of Division 1 of,
to amend and repeal Sections 276.2 and 276.3 of, to add Sections
259.13 and 531.9 to, and to repeal Section 620.5 of, the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2092, Committee on Revenue and Taxation.  Taxation:  property
taxation:  local sales and use taxes.
   (1) 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 also excludes
from the terms "purchased" and "change in ownership" the purchase or
transfer of the principal residence of the transferor, or the
purchase or transfer of the first $1,000,000 of all other real
property, in the case of a purchase or transfer between parents and
their children, or grandparents and grandchildren as defined by the
Legislature.  Statutory law that implements this constitutional
exclusion specifies various requirements and procedures.
   This bill would, for purposes of those statutory provisions,
require an additional certification, as provided, by claimants of the
exclusion as to their kinship status and other matters.
   (2) Existing property tax law, pursuant to the authorization of
the California Constitution, permits persons over 55 years of age and
persons who are severely and permanently disabled, as specified, to
transfer, under certain conditions, the property tax base year value
of their home to a replacement home in the same county, and if a
county ordinance so providing has been adopted, to a replacement home
in a different county.
   This bill would permit persons over the age of 55 years and
disabled persons to transfer a base year value of land, as well as
the manufactured home, to and from manufactured home parks owned by
resident-controlled entities.
   The bill would permit these residents to file a claim for the same
base year value transfer within 3 years of the reappraisal, within a
specified period, of the pro rata share of the manufactured home
park, instead of within 3 years from the day they sold an original
property.
   This bill would also clarify how specified amendments made by
prior law, relating to transfer of base year value where the original
home was damaged or destroyed, shall apply.
   (3) Existing law provides that all property is taxable unless
otherwise provided.  Existing law permits a county board of
supervisors to provide for the cancellation of a supplemental tax
bill where the amount of the taxes to be billed is less than the cost
of administration, not to exceed $20, or $50 for mobilehome
accessories.
   This bill would increase the maximum amount of taxes permitted to
be canceled from $20 to $50, and would eliminate obsolete provisions
relating to mobilehome accessories.
   (4) The California Constitution authorizes the Legislature to
exempt from taxation property that is used exclusively for religious,
hospital, or charitable purposes, and is owned or held in trust by a
nonprofit entity.  Pursuant to this constitutional authority,
existing law exempts from property taxation lower income housing,
that meets specified conditions, that is owned and operated by the
housing entity of a federally designated Indian tribe.
   This bill would designate this latter exemption as the "tribal
housing exemption" and would, for purposes of the exemption, specify
the requirements for the filing of an exemption affidavit, and revise
the definition of lower income housing to also include lower income
households as defined by government financing agreements.  The bill
would provide for filing deadlines for the exemption, add provisions
for partial exemptions in the case of late filing and for postlien
date acquisition of property, and for other administrative matters.
   (5) Existing law provides that if any property on the local roll
has escaped assessment, the assessor is required to assess the
property upon discovery.
   This bill would permit a county board of supervisors to require
that the assessor not make an escape assessment if the assessment
would result in the amount of tax due being less than the cost of
assessing and collecting the tax, not to exceed $50.
   (6) Existing property tax law provides, pursuant to the
authorization of the California Constitution, for the exemption from
property taxation of specified amounts of the assessed value of the
home of a disabled veteran, or a veteran's spouse in the case in
which the person has, as a result of a service-connected disease or
injury, died while on active duty in military service.  It also
provides for partial exemptions, each applicable as provided and
contingent upon an affidavit being filed, as specified.
   This bill would make various revisions to these provisions to
permit the disabled veterans' exemption to apply to property owned,
but not resided in, by the individual on the lien date, and to
terminate the exemption on the individual's prior residence as of the
lien date.  The bill would also establish an alternative final
filing date, and make conforming changes with respect to escape
assessments on property for which the exemption has been terminated.

   (7) Existing property law requires each person owning taxable
personal property with an aggregate cost of $100,000 or more to file
a signed property statement with the county assessor.
   This bill would permit these statements to be filed
electronically, subject to authentication, as specified.
   (8) The existing Manufactured Home Property Tax Law currently
refers to "manufactured homes," rather than mobilehomes.
   This bill would conform various other references in property tax
law provisions to make similar reference changes, and would clarify
various provisions relating to manufactured homes.
   (9) The bill would make various other technical, conforming
changes to correct various cross-references and to conform provisions
to related, current law.
   (10) By imposing additional administrative duties on local tax
officials, this bill would impose a state-mandated local program.
   (11) The Bradley-Burns Uniform Local Sales and Use Tax Law
requires that the place of use for reporting and transmitting any use
tax with respect to a leased vehicle, as defined, is determined
according to specified criteria.
   This bill would define the term "motor vehicle," for purposes of
these provisions, to mean a self-propelled passenger vehicle, other
than a house car, or a pickup truck rated less than one ton.
   (12) 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.
  (13) 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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   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.


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


  SECTION 1.  Section 62 of the Revenue and Taxation Code is amended
to read:
   62.  Change in ownership shall not include:
   (a) (1) Any transfer between coowners that results in a change in
the method of holding title to the real property transferred without
changing the proportional interests of the coowners in that real
property, such as a partition of a tenancy in common.
   (2) Any transfer between an individual or individuals and a legal
entity or between legal entities, such as a cotenancy to a
partnership, a partnership to a corporation, or a trust to a
cotenancy, that results solely in a change in the method of holding
title to the real property and in which proportional ownership
interests of the transferors and transferees, whether represented by
stock, partnership interest, or otherwise, in each and every piece of
real property transferred, remain the same after the transfer.  The
provisions of this paragraph shall not apply to transfers also
excluded from change in ownership under the provisions of subdivision
(b) of Section 64.
   (b) Any transfer for the purpose of perfecting title to the
property.
   (c) (1) The creation, assignment, termination, or reconveyance of
a security interest; or (2) the substitution of a trustee under a
security instrument.
   (d) Any transfer by the trustor, or by the trustor's spouse, or by
both, into a trust for so long as (1) the transferor is the present
beneficiary of the trust, or (2) the trust is revocable; or any
transfer by a trustee of such a trust described in either clause (1)
or (2) back to the trustor; or, any creation or termination of a
trust in which the trustor retains the reversion and in which the
interest of others does not exceed 12 years duration.
   (e) Any transfer by an instrument whose terms reserve to the
transferor an estate for years or an estate for life.  However, the
termination of such an estate for years or estate for life shall
constitute a change in ownership, except as provided in subdivision
(d) and in Section 63.
   (f) The creation or transfer of a joint tenancy interest if the
transferor, after the creation or transfer, is one of the joint
tenants as provided in subdivision (b) of Section 65.
   (g) Any transfer of a lessor's interest in taxable real property
subject to a lease with a remaining term (including renewal options)
of 35 years or more.  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), 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.
   (h) Any purchase, redemption, or other transfer of the shares or
units of participation of a group trust, pooled fund, common trust
fund, or other collective investment fund established by a financial
institution.
   (i) Any transfer of stock or membership certificate in a housing
cooperative that was financed under one mortgage, provided that
mortgage was insured under Section 213, 221(d)(3), 221(d)(4), or 236
of the National Housing Act, as amended, or that housing cooperative
was financed or assisted pursuant to Section 514, 515, or 516 of the
Housing Act of 1949 or Section 202 of the Housing Act of 1959, or the
housing cooperative was financed by a direct loan from the
California Housing Finance Agency, and provided that the regulatory
and occupancy agreements were approved by the governmental lender or
insurer, and provided that the transfer is to the housing cooperative
or to a person or family qualifying for purchase by reason of
limited income.  Any subsequent transfer from the housing cooperative
to a person or family not eligible for state or federal assistance
in reduction of monthly carrying charges or interest reduction
assistance by reason of the income level of that person or family
shall constitute a change of ownership.
   (j) Any transfer during the period March 1, 1975, to March 1,
1981, between coowners in any property that was held by them as
coowners for all or part of that period, and which was eligible for a
homeowner's exemption during the period of the coownership,
notwithstanding any other provision of this chapter.  Any transferee
whose interest was revalued in contravention of the provisions of
this subdivision shall obtain a reversal of that revaluation with
respect to the 1980-81 assessment year and thereafter, upon
application to the county assessor of the county in which the
property is located filed on or before March 26, 1982.  No refunds
shall be made under this subdivision for any assessment year prior to
the 1980-81 fiscal year.
   (k) Any transfer of property or an interest therein between a
corporation sole, a religious corporation, a public benefit
corporation, and a holding corporation as defined in Section 23701h
holding title for the benefit of any of these corporations, or any
combination thereof (including any transfer from one entity to the
same type of entity), provided that both the transferee and
transferor are regulated by laws, rules, regulations, or canons of
the same religious denomination.
   (l) Any transfer, that would otherwise be a transfer subject to
reappraisal under this chapter, between or among the same parties for
the purpose of correcting or reforming a deed to express the true
intentions of the parties, provided that the original relationship
between the grantor and grantee is not changed.
   (m) Any intrafamily transfer of an eligible dwelling unit from a
parent or parents or legal guardian or guardians to a minor child or
children or between or among minor siblings as a result of a court
order or judicial decree due to the death of the parent or parents.
As used in this subdivision, "eligible dwelling unit" means the
dwelling unit that was the principal place of residence of the minor
child or children prior to the transfer and remains the principal
place of residence of the minor child or children after the transfer.

   (n) Any transfer of an eligible dwelling unit, whether by will,
devise, or inheritance, from a parent or parents to a child or
children, or from a guardian or guardians to a ward or wards, if the
child, children, ward, or wards have been disabled, as provided in
subdivision (e) of Section 12304 of the Welfare and Institutions
Code, for at least five years preceding the transfer and if the
child, children, ward, or wards have adjusted gross income that, when
combined with the adjusted gross income of a spouse or spouses,
parent or parents, and child or children, does not exceed twenty
thousand dollars ($20,000) in the year in which the transfer occurs.
As used in this subdivision, "child" or "ward" includes a minor or
an adult.  As used in this subdivision, "eligible dwelling unit"
means the dwelling unit that was the principal place of residence of
the child or children, or ward or wards for at least five years
preceding the transfer and remains the principal place of residence
of the child or children, or ward or wards after the transfer.  Any
transferee whose property was reassessed in contravention of the
provisions of this subdivision for the 1984-85 assessment year shall
obtain a reversal of that reassessment upon application to the county
assessor of the county in which the property is located.
Application by the transferee shall be made to the assessor no later
than 30 days after the later of either the transferee's receipt of
notice of reassessment pursuant to Section 75.31 or the end of the
1984-85 fiscal year.
   (o) Any transfer of a possessory interest in tax-exempt real
property subject to a sublease with a remaining term, including
renewal options, that exceeds half the length of the remaining term
of the leasehold, including renewal options.
  SEC. 2.  Section 62.1 of the Revenue and Taxation Code is amended
to read:
   62.1.  (a) Change in ownership shall not include the following:
   (1) Any transfer, on or after January 1, 1985, of a mobilehome
park to a nonprofit corporation, stock cooperative corporation,
limited equity stock cooperative, or other entity formed by the
tenants of a mobilehome park, for the purpose of purchasing the
mobilehome park, provided that, with respect to any transfer of a
mobilehome park on or after January 1, 1989, subject to this
paragraph, the individual tenants who were renting at least 51
percent of the spaces in the mobilehome park prior to the transfer
participate in the transaction through the ownership of an aggregate
of at least 51 percent of the voting stock of, or other ownership or
membership interests in, the entity which acquires the park.  If, on
or after January 1, 1998, a park is acquired by an entity that did
not attain an initial tenant participation level of at least 51
percent on the date of the transfer, the entity shall have up to one
year after the date of the transfer to attain a tenant participation
level of at least 51 percent.  If an individual tenant notifies the
county assessor of the intention to comply with the conditions set
forth in the preceding sentence, the mobilehome park may not be
reappraised by the assessor during that period.  However, if a tenant
participation level of at least 51 percent is not attained within
the one-year period, the county assessor shall thereafter levy escape
assessments for the mobilehome park transfer.
   (2) Any transfer or transfers on or after January 1, 1985, of
rental spaces in a mobilehome park to the individual tenants of the
rental spaces, provided that (1) at least 51 percent of the rental
spaces are purchased by individual tenants renting their spaces prior
to purchase, and (2) the individual tenants of these spaces form,
within one year after the first purchase of a rental space by an
individual tenant, a resident organization as described in
subdivision (l) of Section 50781 of the Health and Safety Code, to
operate and maintain the park.  If, on or after January 1, 1985, an
individual tenant or tenants notify the county assessor of the
intention to comply with the conditions set forth in the preceding
sentence, any mobilehome park rental space that is purchased by an
individual tenant in that mobilehome park during that period shall
not be reappraised by the assessor.  However, if all of the
conditions set forth in the first sentence of this paragraph are not
satisfied, the county assessor shall thereafter levy escape
assessments for the spaces so transferred.  This paragraph shall
apply only to those rental mobilehome parks that have been in
operation for five years or more.
   (b) (1) If the transfer of a mobilehome park has been excluded
from a change in ownership pursuant to paragraph (1) of subdivision
(a) and the park has not been converted to condominium, stock
cooperative ownership, or limited equity cooperative ownership, any
transfer on or after January 1, 1989, of shares of the voting stock
of, or other ownership or membership interests in, the entity that
acquired the park in accordance with paragraph (1) of subdivision (a)
shall be a change in ownership of a pro rata portion of the real
property of the park unless the transfer is for the purpose of
converting the park to condominium, stock cooperative ownership, or
limited equity cooperative ownership or is excluded from change in
ownership by Section 62, 63, or 63.1.
   (2) For the purposes of this subdivision, "pro rata portion of the
real property" means the total real property of the mobilehome park
multiplied by a fraction consisting of the number of shares of voting
stock, or other ownership or membership interests, transferred
divided by the total number of outstanding issued or unissued shares
of voting stock of, or other ownership or membership interests in,
the entity that acquired the park in accordance with paragraph (1) of
subdivision (a).
   (3) Any pro rata portion or portions of real property that changed
ownership pursuant to this subdivision may be separately assessed as
provided in Section 2188.10.
   (4) (A) Notwithstanding any other provision of law, after an
exclusion under subdivision (a), the assessor may not levy any escape
or supplemental assessment with respect to any change in ownership
of a pro rata portion of the real property of the mobilehome park
that occurred between January 1, 1989, and January 1, 2002, and for
which the assessor did not, prior to January 1, 2000, levy any
assessments.  However, commencing with the January 1, 2002, lien
date, the assessor shall correct the base year value of the pro rata
portion of the real property of the park to properly reflect these
changes in ownership.  A mobilehome park shall provide information
requested by the assessor that is necessary to correct the base year
value of the property for purposes of this paragraph.
   (B) When an assessor corrects the base year value of the real
property of the park pursuant to subparagraph (A), the assessor shall
notify parks that residents may be eligible for property tax
assistance programs offered by either the Controller or the Franchise
Tax Board for senior citizens, or blind or disabled persons.
   (C) Any outstanding taxes that were levied between January 1,
2000, and January 1, 2002, as a result of a pro rata change in
ownership as described in subparagraph (A) shall be canceled.
However, there shall be no refund of taxes, as so levied, that were
paid prior to January 1, 2002.
   (5) A mobilehome park that does not utilize recorded deeds to
transfer ownership interest in the spaces or lots shall file, by
February 1 of each year, a report with the county assessor's office
containing all of the following information:
   (A) The full name and mailing address of each owner, stockholder,
or holder of an ownership interest in the mobilehome park.
   (B) The situs address, including space number, of each unit.
   (C) The date that the ownership interest was acquired.
   (D) If the unit is a manufactured home, the Department of Housing
and Community Development decal number or serial number, or both, and
whether the manufactured home is subject to the vehicle license fee
or the local property tax.
   (6) Within 30 days of a change in ownership, the new resident
owner or other purchaser or transferee of a manufactured home within
a mobilehome park that does not utilize recorded deeds to transfer
ownership interest in the spaces or lots shall file a change in
ownership statement described in either Section 480 or 480.2.
   (7) Failure to comply with the reporting requirement described in
paragraph (5) shall result in a penalty pursuant to Section 482.
   (c) It is the intent of the Legislature that, in order to
facilitate affordable conversions of mobilehome parks to tenant
ownership, paragraph (1) of subdivision (a) apply to all bona fide
transfers of rental mobilehome parks to tenant ownership, including,
but not limited to, those parks converted to tenant ownership as a
nonprofit corporation made on or after January 1, 1985.
  SEC. 3.  Section 62.2 of the Revenue and Taxation Code is amended
to read:
   62.2.  (a) (1) Subject to paragraph (2), change in ownership shall
not include any transfer on or after January 1, 1989, of a
mobilehome park to a nonprofit corporation, stock cooperative
corporation, tenant-in-common ownership group, or any other entity,
including a governmental entity, if, within 18 months after the
transfer, the mobilehome park is transferred by that corporation or
other entity, including a governmental entity, to a nonprofit
corporation, stock cooperative corporation, or other entity formed by
the tenants of the mobilehome park in a transaction that is excluded
from change in ownership by paragraph (1) of subdivision (a) of
Section 62.1, or at least 51 percent of the mobilehome park rental
spaces are transferred to the individual tenants of those spaces in a
transaction excluded from change in ownership by paragraph (2)
subdivision (a) of Section 62.1.
   (2) (A) Any mobilehome park that was initially transferred on or
after January 1, 1993, to a nonprofit corporation, stock cooperative
corporation, tenant-in-common ownership group, or any other entity,
including a governmental entity, that is subsequently transferred
within 36 months of that initial transfer as provided in paragraph
(1), shall qualify for the exclusion from change in ownership
pursuant to this subdivision.  In applying the 36-month limit
specified in the preceding sentence to the subsequent transfer to an
individual tenant, as provided in paragraph (1), of a rental space in
a mobilehome park that was initially transferred on or after January
1, 1995, to a nonprofit corporation, stock cooperative corporation,
tenant-in-common ownership group, or any other entity, the execution
of a purchase contract and the opening of a bona fide purchase escrow
with a licensed escrow agent shall be deemed to transfer the rental
space in compliance with that 36-month limit, provided that both of
the following conditions are met:
   (i) The escrow is opened prior to the expiration of the 36-month
time period.
   (ii) The escrow closes on a date no later than six months after
the end of the 36-month time period.
   (B) A mobilehome park located within a disaster area that was
initially transferred on or after October 1, 1991, and before October
31, 1991, to a nonprofit corporation, stock cooperative corporation,
or other entity, that is subsequently transferred within 76 months
of that initial transfer as provided in paragraph (1), shall qualify
for the exclusion from change in ownership pursuant to this
subdivision.  For purposes of the preceding sentence, "mobilehome
park located within a disaster area" means a mobilehome park that is
located in the County of Los Angeles in an area for which both of the
following apply:
   (i) The Governor, as a result of the January 17, 1994, Northridge
earthquake, has declared the area to be in a state of disaster and
certified the area's need for assistance.
   (ii) The President of the United States has, pursuant to federal
law, determined the area to be in a state of major disaster.
   The exclusion from change in ownership pursuant to this
subdivision of a mobilehome park located within a disaster area shall
be effective commencing with the 1995-96 fiscal year, and shall not
require any affected county to refund any amount of property tax
levied with respect to a mobilehome park for the period from October
1, 1991, to June 30, 1995, inclusive.
   (b) With respect to any transfer of any mobilehome park on or
after January 1, 1989, subject to this section, the individual
tenants who are renting at least a majority of the spaces in the
mobilehome park prior to the transfer to the entity formed by the
tenants for the acquisition of the park shall participate in the
transaction through the ownership of an aggregate of at least a
majority of voting stock of, or other ownership or membership
interest in, that entity.
   (c) This section shall not apply if any fees charged the
mobilehome park tenants in connection with either the first or second
transfer exceed 15 percent of the total consideration paid for the
mobilehome park in the first transfer, plus any accrued interest and
taxes.
   (d) If the assessor is notified in writing at the time the
transferee files the change in ownership statement that the
transferee intends to qualify the transfer under this section, the
mobilehome park shall not be reappraised pending satisfaction of the
relevant conditions set forth in this section for exclusion from
change in ownership.  If the transferee fails to satisfy those
conditions, the assessor shall reappraise the mobilehome park and
levy escape assessments or supplemental assessments, as appropriate.
For escape or supplemental assessments levied pursuant to the
preceding sentence with respect to a mobilehome park located within a
disaster area, both of the following conditions shall apply:
   (1) The limitations period shall be that period specified in
either subdivision (b) of Section 532 or subdivision (d) of Section
75.11, as applicable.
   (2) For purposes of applying the limitations periods specified in
paragraph (1), the expiration date of the 76-month period specified
in subdivision (a) shall be deemed to be the date upon which the
initial transfer of the mobilehome park was reported to the assessor.

  SEC. 4.  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) 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.
   (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.
   (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 for which a homeowners'
exemption or a disabled veterans' residence exemption has been
granted in the name of the eligible transferor.  "Principal residence"
includes only that portion of the land underlying the principal
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.
   (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.
   (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, 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, or the executor or administrator of the
transferee's estate, signed and made under penalty of perjury that
the transferee is a grandparent, 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, 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.
   (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 shall 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 shall require in order to monitor the one
million dollar ($1,000,000) limitation in paragraph (2) of
subdivision (a).
   (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.
  SEC. 5.  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 homeowner's 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 homeowner's
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 homeowner'
s 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 original property, as a
joint tenant, a tenant in common, or a community property owner,
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) 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 the assessor shall make available upon
request, the following information:
   (1) The name and social security number of each claimant and of
any spouse of the claimant who was a record owner of the original
property at the time of its sale or is a record owner of the
replacement dwelling.
   (2) 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:
   (A) 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.
   (B) 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.
   (3) The address and, if known, the assessor's parcel number of the
original property.
   (4) 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.
   (5) 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.
   The State Board of Equalization shall design the form for claiming
eligibility.
   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).
   (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 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 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 homeowner's 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.
   (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, 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
homeowner's 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.  Notwithstanding subdivision (f), a claim
shall be deemed to be timely filed if it is filed within four years
after the operative date of the act adding this paragraph.
  SEC. 6.  Section 75.51 of the Revenue and Taxation Code is amended
to read:
   75.51.  The tax collector shall mail or electronically transmit a
supplemental tax bill to the assessee, including the following
information either on the bill or in a separate statement
accompanying the bill:
   (a) The information supplied by the assessor to the auditor
pursuant to Section 75.40.
   (b) The amount of the supplemental taxes due.
   (c) The date the notice is mailed.
   (d) The date on which the taxes will become delinquent and the
penalties for delinquency.
   (e) A statement that the supplemental taxes were determined in
accordance with Article XIII A of the California Constitution which
generally requires reappraisal of property whenever a change in
ownership occurs or property is newly constructed.
   (f) The tax rates or the dollar amounts of taxes levied by each
revenue district and taxing agency on the property covered by the tax
bill.
   (g) All of the following:
   (1) Information specifying that if the taxpayer disagrees with a
change in the assessed value as shown on the tax bill, the taxpayer
has the right to an informal assessment review by contacting the
assessor's office.
   (2) (A) Except as provided in subparagraph (B), information
specifying that if the taxpayer and the assessor are unable to agree
on proper assessed value pursuant to an informal assessment review,
the taxpayer has the right to file an application for reduction in
assessment for the following year with the county board of
equalization or the assessment appeals board, as applicable, and the
time period during which the application will be accepted.
   (B) For counties in which the board of supervisors has adopted the
provisions of subdivision (c) of Section 1605, information advising
that the assessee has a right to appeal the supplemental assessment,
and that the appeal is required to be filed within 60 days of the
date of the mailing or electronic transmittal of the tax bill.  For
the purposes of equalization proceedings, the supplemental assessment
shall be considered an assessment made outside of the regular
assessment period as provided in Section 1605.
   (3) The address of the clerk of the county board of equalization
or the assessment appeals board, as applicable, at which forms for an
application for reduction may be obtained.
  SEC. 7.  Section 75.55 of the Revenue and Taxation Code is amended
to read:
   75.55.  (a) A county board of supervisors may, by ordinance,
provide for the cancellation of any supplemental tax bill in which
the amount of taxes to be billed is less than the cost of assessing
and collecting them.  In no event shall any supplemental tax bill be
canceled pursuant to this subdivision if the amount of taxes on that
bill exceeds fifty dollars ($50).
   (b) Except where a county board of supervisors has adopted an
ordinance pursuant to subdivision (a), a county board of supervisors
may, by ordinance, provide for the cancellation by the assessor of
any supplemental assessment where that assessment would result in an
amount of taxes due which is less than the cost of assessing and
collecting them.  In no event shall any supplemental assessment be
canceled pursuant to this subdivision if the amount of taxes
resulting from that supplemental assessment would exceed fifty
dollars ($50).
   (c) Notwithstanding this section, no taxable real property shall
be exempt from property taxes assessed on the lien date, as provided
in Section 2192, unless the property is otherwise exempt under this
division.
  SEC. 8.  The heading of Chapter 2.6 (commencing with Section 172)
of Part 1 of Division 1 of the Revenue and Taxation Code is amended
to read:

      CHAPTER 2.6.  DISASTER RELIEF FOR MANUFACTURED HOMES

  SEC. 9.  Section 172 of the Revenue and Taxation Code is amended to
read:
   172.  Whenever a manufactured home is destroyed on or after
January 1, 1982, as the result of a disaster declared by the
Governor, the owner shall be entitled to relief from local property
taxation or vehicle license fees in accordance with the provisions of
this chapter.
  SEC. 10.  Section 172.1 of the Revenue and Taxation Code is amended
to read:
   172.1.  (a) To claim tax relief in accordance with the provisions
of this chapter, the owner shall execute a declaration under penalty
of perjury that the replaced manufactured home was destroyed by a
disaster declared by the Governor and shall furnish with that
declaration any other information, prescribed by the Department of
Housing and Community Development after consultation with the
California Assessors' Association, as is necessary to establish
eligibility for relief under this chapter.
   To be eligible for relief under this chapter, the replacement
manufactured home must be comparable in size, utility, and location,
as determined by the county assessor, with the destroyed manufactured
home.
   For purpose of this section, "destroyed" means damaged to such an
extent that the cost of repair to the manufactured home would exceed
its value at that time immediately preceding its destruction, or the
manufactured home is declared a total loss for insurance purposes.
   (b) If the replacement manufactured home is subject to local
property taxation, the affidavit and documentation required by
subdivision (a) shall be forwarded to the assessor of the county of
situs.  If the assessor determines that the owner of the replacement
manufactured home is eligible for tax relief in accordance with the
provisions of this chapter, the assessor shall, notwithstanding any
other provision of law, do either of the following:
   (1) If the destroyed manufactured home was subject to the vehicle
license fee, enroll the replacement manufactured home with an
assessed valuation so that the local property taxes paid shall be the
same amount as the vehicle license fee and registration fee due on
the destroyed manufactured home for the year prior to its
destruction.
   (2) If the destroyed manufactured home was subject to local
property taxation, enroll the replacement manufactured home at a
taxable value equal to the taxable value of the destroyed
manufactured home at the time of its destruction.
   (c) If the assessor determines that the owner of the replacement
manufactured home is not eligible for tax relief in accordance with
the provisions of this chapter, the replacement manufactured home
shall be assessed in accordance with Part 13 (commencing with Section
5800).
   (d) If the replacement manufactured home is subject to the vehicle
license fee, the affidavit and documentation required by subdivision
(a) shall be forwarded to the Department of Housing and Community
Development.  If the department determines that the owner is eligible
for tax relief in accordance with the provisions of this chapter,
the department shall do either of the following:
   (1) If the destroyed manufactured home was subject to the vehicle
license fee, assign an in-lieu taxation classification and rating
year for determination of depreciation such that the owner of the
replacement manufactured home will be charged registration and
license fees no greater than those he or she would have been charged
for the destroyed manufactured home.
   (2) If the destroyed manufactured home was subject to local
property taxation, assign an in-lieu taxation classification and
rating year for determination of depreciation such that the owner of
the replacement manufactured home will be charged registration and
license fees equal to local property taxes paid on the destroyed
manufactured home for the year prior to its destruction.
   (e) If the department determines that a replacement manufactured
home subject to the vehicle license fee is not eligible for tax
relief in accordance with the provisions of this chapter, the vehicle
license fee for the replacement manufactured home shall be
determined in accordance with the provisions of Sections 18115 and
18115.5 of the Health and Safety Code.
   (f) If the tax on a replacement manufactured home determined in
accordance with subdivision (b) or (d) is greater than the tax would
be if determined without reference to this chapter, the lesser amount
shall be levied.
   (g) If a manufactured home subject to tax relief in accordance
with the provisions of this chapter is subsequently sold or
transferred to another party, the subsequent owner shall not receive
this tax relief unless he or she is eligible in his or her own right
for that relief.
  SEC. 11.  Section 181 of the Revenue and Taxation Code is amended
to read:
   181.  As used in this chapter:
   (a) "Eligible county" means a county which meets both of the
following requirements:
   (1) Has been proclaimed by the Governor to be in a state of
disaster as a result of storms and floods occurring during February
1986.
   (2) Has adopted an ordinance providing for property reassessment
pursuant to Section 170.
   (b) "Eligible property" means real property and any manufactured
home which has received the homeowners' exemption or is eligible for
the homeowners' exemption as of March 1, 1986, and which is located
in an eligible county.
   (c) "Property tax deferral claim" means a claim filed by the owner
of eligible property in conjunction with or in addition to the
filing of an application for reassessment of that property pursuant
to Section 170, which enables the owner to defer payment of the April
10, 1986, installment of taxes on property on the regular secured
roll for the 1985-86 fiscal year, as provided in Section 185.
  SEC. 12.  Section 194 of the Revenue and Taxation Code is amended
to read:
   194.  As used in this chapter:
   (a) "Eligible county" means a county that meets both of the
following requirements:
   (1) Has been proclaimed by the Governor to be in a state of
emergency.
   (2) Has adopted an ordinance providing property tax relief for
disaster victims as provided in Section 170.
   (b) "Eligible property" means real property and any manufactured
home, including any new construction that was completed or any change
in ownership that occurred prior to the date of the disaster that
meets both of the following requirements:
   (1) Is located in an eligible county.
   (2) Has sustained substantial disaster damage and the disaster
resulted in the issuance of a state of emergency proclamation by the
Governor.
   "Eligible property" does not include any real property or any
manufactured home, whether or not it otherwise qualifies as eligible
property, if that real property or manufactured home was purchased or
otherwise acquired by a claimant for relief under this chapter after
the last date on which the disaster occurred.
   (c) "Fair market value" means "full cash value" or "fair market
value" as defined in Section 110.
   (d) "Next property tax installment payment date" means December 10
or April 10, whichever date occurs first after the last date on
which the eligible property was damaged.
   (e) "Property tax deferral claim" means a claim filed by the owner
of eligible property in conjunction with, or in addition to, the
filing of an application for reassessment of that property pursuant
to Section 170, that enables the owner to defer payment of the next
installment of taxes on property on the regular secured roll for the
current fiscal year, as provided in Section 194.1 or to defer payment
of taxes on property on the supplemental roll for the current fiscal
year, as provided in Section 194.9.
   (f) "Substantial disaster damage," as to real property located in
a county declared to be a disaster by the Governor, means, with
respect to real property and any manufactured home that has received
the homeowners' exemption or is eligible for the exemption as of the
most recent lien date, damage amounting to at least 10 percent of its
fair market value or five thousand dollars ($5,000), whichever is
less; and, with respect to other property, damage to the parcel of at
least                                               20 percent of
its fair market value immediately preceding the disaster causing the
damage.
  SEC. 13.  Section 197 of the Revenue and Taxation Code is amended
to read:
   197.  As used in this chapter:
   (a) "Eligible county" means a county which meets both of the
following requirements:
   (1) Has been proclaimed by the Governor to be in a state of
disaster as a result of the earthquake and aftershocks which occurred
in California during October 1989.
   (2) Has adopted an ordinance providing property tax relief for
earthquake, aftershock, and fire disaster victims as provided in
Section 170.
   (b) "Eligible property" means real property and any manufactured
home, including any new construction which was completed or any
change in ownership which occurred prior to October 17, 1989, which
meets both of the following requirements:
   (1) Is located in an eligible county.
   (2) Has sustained substantial disaster damage due to the
earthquake or aftershocks occurring during 1989, which earthquake and
aftershocks resulted in the issuance of disaster proclamations by
the Governor.
   "Eligible property" does not include any real property or any
manufactured home, whether or not it otherwise qualifies as eligible
property, if that real property or manufactured home was purchased or
otherwise acquired by a claimant for relief under this chapter after
October 17, 1989.
   (c) "Substantial disaster damage," as to real property located in
a county declared to be a disaster by the Governor as a result of the
earthquake and aftershocks occurring in October 1989, means, with
respect to real property and any manufactured home which has received
the homeowners' exemption or is eligible for the exemption as of
March 1, 1989, damage amounting to at least 10 percent of its fair
market value or five thousand dollars ($5,000), whichever is less;
and, with respect to other property, damage to the parcel of at least
20 percent of its fair market value immediately preceding the
disaster causing the damage.
   (d) "Fair market value" means "full cash value" or "fair market
value" as defined in Section 110.
   (e) "Property tax deferral claim" means a claim filed by the owner
of eligible property in conjunction with or in addition to the
filing of an application for reassessment of that property pursuant
to Section 170, which enables the owner to defer payment of the
December 10, 1989, installment of taxes on property on the regular
secured roll for the 1989-90 fiscal year, as provided in Section
197.1, or to defer payment of taxes on property on the supplemental
roll for the 1989-90 fiscal year, as provided in Section 197.9.
  SEC. 14.  Section 237 of the Revenue and Taxation Code is amended
to read:
   237.  (a) (1) Subject to the requirements set forth in paragraph
(2), there is exempt from taxation under this part that portion of
the assessed value of property, owned and operated by a federally
recognized Indian tribe or its tribally designated housing entity,
that corresponds to that portion of the property that is continuously
available to, or occupied by, lower income households, as defined in
Section 50079.5 of the Health and Safety Code or applicable federal,
state, or local financing agreements, at rents that do not exceed
those prescribed by Section 50053 of the Health and Safety Code, or
rents that do not exceed those prescribed by the terms of the
applicable federal, state, or local financing agreements or financial
assistance agreements.
   (2) The exemption set forth in subdivision (a) applies only if the
property and entity meet the following requirements:
   (A) At least 30 percent of the property's housing units are either
continuously available to, or occupied by, lower income households,
as defined in Section 50079.5 of the Health and Safety Code or
applicable federal, state, or local financing agreements, at rents
that do not exceed those prescribed by Section 50053 of the Health
and Safety Code, or rents that do not exceed those prescribed by the
terms of the applicable federal, state, or local financing agreements
or financial assistance agreements.
   (B) The housing entity is nonprofit.
   (C) No part of the net earnings of the housing entity inure to the
benefit of any private shareholder or individual.
   (b) In lieu of the tax imposed by this part, a tribe or tribally
designated housing entity may agree to make payments to a county,
city, city and county, or political subdivision of the state for
services, improvements, or facilities provided by that entity for the
benefit of a low-income housing project owned and operated by the
tribe or tribally designated housing entity. Any payments in lieu of
tax may not exceed the estimated cost to the city, county, city and
county, or political subdivision of the state of the services,
improvements, or facilities to be provided.
   (c) A tribe or tribally designated housing entity applying for an
exemption under this section shall provide the following documents to
the assessor:
   (1) Documents establishing that the designating tribe is federally
recognized.
   (2) Documents establishing that the housing entity has been
designated by the tribe.
   (3) Documents establishing that there is a deed restriction,
agreement, or other legally binding document requiring that the
property be used in compliance with subparagraph (A) of paragraph (2)
of subdivision (a).
   (d) This exemption shall be known as the "tribal housing
exemption."
  SEC. 15.  Section 254 of the Revenue and Taxation Code is amended
to read:
   254.  Any person claiming the church, cemetery, college,
exhibition, welfare, veterans' organization, free public libraries,
free museums, aircraft of historical significance, tribal housing, or
public schools property tax exemption and anyone claiming the
classification of a vessel as a documented vessel eligible for
assessment under Section 227, shall submit to the assessor annually
an affidavit, giving any information required by the board.
  SEC. 16.  Section 259.13 is added to the Revenue and Taxation Code,
to read:
   259.13.  (a) Affidavits for the tribal housing exemption shall be
filed on or before February 15 of each year with the assessor.
Affidavits of claimants shall be accompanied by:
   (1) The documents required by subdivision (c) of Section 237.
   (2) A description of the property for which the exemption is
claimed, including the entire project property and the portion for
which exemption is claimed.  If the property includes units which do
not qualify for the exemption, the description must list the
qualifying and nonqualifying units.
   (3) An annual affidavit by the claimant that the property for
which exemption is claimed meets the income and rental requirements
for the exemption and listing the number of occupants in each unit
for which the exemption is claimed and the income and rental limits
applicable for each household.  Annual tenant affidavits verifying
household size and income should be on file with the claimant for
each exempt unit.
   (b) Once the exemption has been granted in a particular county to
a particular tribe or tribally designated housing entity, documents
establishing that the tribe is federally recognized and that the
housing entity has been designated by the tribe need not be
resubmitted for additional years or additional properties of that
tribe or tribally designated housing entity in the same county.
   (c) Once the exemption has been granted for a particular property,
it is not necessary to resubmit documents establishing that there is
a legally binding restriction on the use of that property in
succeeding years for as long as the legally binding restriction is in
effect.
   (d) Upon any indication that a tribal housing exemption has been
incorrectly allowed, the assessor shall make a redetermination of
eligibility for the tribal housing exemption.  If the assessor
determines that the property or any portion thereof is no longer
eligible for the exemption, he or she shall immediately cancel the
exemption on so much of the property as is no longer eligible for
exemption.
   (e) If a tribal housing exemption has been incorrectly allowed, an
escape assessment as allowed by Article 4 (commencing with Section
531) of Chapter 3 in the amount of the exemption with interest as
provided in Section 506 shall be made, together with a penalty for
failure to notify the assessor, where applicable, in the amount of 10
percent of the assessment.
  SEC. 17.  Section 270 of the Revenue and Taxation Code is amended
to read:
   270.  (a) With respect to property as to which the college,
cemetery, church, religious, exhibition, veterans' organization, free
public libraries, free museums, public schools, community colleges,
state colleges, state universities, tribal housing, or welfare
exemption was available but for which a timely application for
exemption was not filed:
   (1) Ninety percent of any tax or penalty or interest thereon shall
be canceled or refunded provided an appropriate application for
exemption is filed on or before the lien date in the calendar year
next succeeding the calendar year in which the exemption was not
claimed by a timely application.
   (2) If the application is filed after the date specified in
paragraph (1), 85 percent of any tax or penalty or interest thereon
shall be canceled or refunded provided an appropriate application for
exemption is filed and relief is not authorized under Section 214.01
or 271.
   (b) Notwithstanding the provisions of subdivision (a), any tax or
penalty or interest thereon exceeding two hundred fifty dollars
($250) in total amount shall be canceled or refunded provided it is
imposed upon property entitled to relief under subdivision (a) for
which an appropriate claim for exemption has been filed.
   (c) With respect to property as to which the welfare exemption or
veterans' organization exemption was available, all provisions of
Section 254.5, other than the specified dates for the filing of
affidavits and other acts, are applicable to this section.
  SEC. 18.  Section 271 of the Revenue and Taxation Code is amended
to read:
   271.  (a) Provided that an appropriate application for exemption
is filed on or before the lien date in the calendar year next
succeeding the calendar year in which the property was acquired, any
tax or penalty or interest imposed upon:
   (1) Property owned by any organization qualified for the college,
cemetery, church, religious, exhibition, veterans' organization,
tribal housing, or welfare exemption that is acquired by that
organization during a given calendar year, after the lien date but
prior to the first day of the fiscal year commencing within that
calendar year, when the property is of a kind that would have been
qualified for the college, cemetery, church, religious, exhibition,
veterans' organization, tribal housing, or welfare exemption if it
had been owned by the organization on the lien date, shall be
canceled or refunded.
   (2) Property owned by any organization that would have qualified
for the college, cemetery, church, religious, exhibition, veterans'
organization, tribal housing, or welfare exemption had the
organization been in existence on the lien date, that was acquired by
it during that calendar year after the lien date in that year but
prior to the commencement of that fiscal year, and of a kind that
presently qualifies for the exemption and that would have so
qualified for that fiscal year had it been owned by the organization
on the lien date and had the organization been in existence on the
lien date, shall be canceled or refunded.
   (3) Property acquired after the beginning of any fiscal year by an
organization qualified for the college, cemetery, church, religious,
exhibition, veterans' organization, tribal housing, or welfare
exemption and the property is of a kind that would have qualified for
an exemption if it had been owned by the organization on the lien
date, whether or not that organization was in existence on the lien
date, shall be canceled or refunded in the proportion that the number
of days for which the property was so qualified during the fiscal
year bears to 365.
   (b) Eighty-five percent of any tax or penalty or interest thereon
imposed upon property that would be entitled to relief under
subdivision (a) or Section 214.01, except that an appropriate
application for exemption was not filed within the time required by
the applicable provision, shall be canceled or refunded provided that
an appropriate application for exemption is filed after the last day
on which relief could be granted under subdivision (a) or Section
214.01.
   (c) Notwithstanding subdivision (b), any tax or penalty or
interest thereon exceeding two hundred fifty dollars ($250) in total
amount shall be canceled or refunded provided it is imposed upon
property entitled to relief under subdivision (b) for which an
appropriate claim for exemption has been filed.
   (d) With respect to property acquired after the beginning of the
fiscal year for which relief is sought, subdivisions (b) and (c)
shall apply only to that pro rata portion of any tax or penalty or
interest thereon which would have been canceled or refunded had the
property qualified for relief under paragraph (3) of subdivision (a).

  SEC. 19.  Section 276 of the Revenue and Taxation Code is amended
to read:
   276.  (a) Except as otherwise provided by subdivision (b), for
property for which the disabled veterans' exemption described in
Section 205.5 was available, but for which a timely claim was not
filed, a partial exemption shall be applied in accordance with
whichever of the following is applicable:
   (1) Ninety percent of any tax, including any interest or penalty
thereon, levied upon that portion of the assessed value of the
property that would have been exempt under a timely and appropriate
claim shall be canceled or refunded, provided that an appropriate
claim for exemption is filed after 5 p.m. on February 15 of the
calendar year in which the fiscal year begins but on or before the
following December 10.
   (2) If an appropriate claim for exemption is filed after the time
period specified in paragraph (1), 85 percent of that portion of any
tax, including any interest or penalty thereon, that was levied upon
that portion of the assessed value of the property that would have
been exempt under a timely and appropriate claim, shall be canceled
or refunded.  Cancellations made under this paragraph are subject to
the provisions of Article 1 (commencing with Section 4895) of Chapter
4.  Refunds issued under this paragraph are subject to the
limitations periods on refunds as described in Article 1 (commencing
with Section 5096) of Chapter 5.
   (b) If a late filed claim for the sixty-thousand-dollar ($60,000)
exemption is filed in conjunction with a timely filed claim for the
forty-thousand-dollar ($40,000) exemption, or if a late filed claim
for the one-hundred-fifty-thousand-dollar ($150,000) exemption is
filed in conjunction with a timely filed claim for the
one-hundred-thousand-dollar ($100,000) exemption, the amount of any
exemption allowed under the late-filed claim under subdivision (a)
shall be determined on the basis of that portion of the exemption
amount, otherwise available under subdivision (a), that exceeds forty
thousand dollars ($40,000) or one hundred thousand dollars
($100,000), as applicable.
   (c) For those claims filed pursuant to subdivision (a) after
November 15, the exemption under that subdivision may be applied to
the second installment.  If that exemption is so applied, the first
installment is still delinquent on December 10, and is subject to
delinquent penalties provided for in this division if that
installment is not timely paid.  A refund shall be made to the
taxpayer upon a claim submitted to the auditor if the exemption is
applied to the second installment and either of the following is
true:
   (1) Both installments are paid on or before December 10.
   (2) The reduction in taxes resulting from the exemption exceeds
the amount of taxes due on the second installment.
  SEC. 20.  Section 276.1 of the Revenue and Taxation Code is amended
to read:
   276.1.  For property for which the disabled veterans' exemption
described in Section 205.5 would have been available but for the
taxpayer's failure to receive a timely disability rating from the
United States Department of Veterans Affairs (USDVA), there shall be
canceled or refunded the amount of any taxes, including any interest
and penalties thereon, subject to the provisions regarding
cancellations in Article 1 (commencing with Section 4985) of Chapter
4 and the limitations periods on refunds as described in Article 1
(commencing with Section 5096) of Chapter 5, levied on that portion
of the assessed value of the property that would have been exempt
under a timely and appropriate claim, provided that the claimant
meets both of the following conditions:
   (a) The claimant had an application pending with the USDVA for a
disability rating and subsequently received a rating that qualifies
the claimant for the disabled veterans' exemption described in
Section 205.5.
   (b) The claimant subsequently files an appropriate claim for the
disabled veterans' exemption described in Section 205.5 the later of
30 days of receipt of the disability rating from the USDVA or on or
before the next following lien date.
  SEC. 21.  Section 276.2 of the Revenue and Taxation Code, as added
by Section 3 of Chapter 922 of the Statutes of 2000, is repealed.
  SEC. 22.  Section 276.2 of the Revenue and Taxation Code, as added
by Section 6 of Chapter 1085 of the Statutes of 2000, is amended to
read:
   276.2.  If the disabled veterans' exemption as described in
Section 205.5 would have been available for a property, but for that
property being acquired by a person eligible for the exemption only
after the lien date, or but for that property being owned by a person
eligible for the exemption on the lien date but not residing on the
property on that date, and an appropriate application for that
exemption is filed on or before the lien date in the calendar year
next following the calendar year in which the property was acquired
or resided in as the principal place of residence, there shall be
canceled or refunded the amount of any taxes, including any interest
and penalties thereon, levied on that portion of the assessed value
of the property that would have been exempt under a timely and
appropriate application.
  SEC. 23.  Section 276.3 of the Revenue and Taxation Code, as added
by Section 4 of Chapter 922 of the Statutes of 2000, is repealed.
  SEC. 24.  Section 276.3 of the Revenue and Taxation Code, as added
by Section 7 of Chapter 1085 of the Statutes of 2000, is amended to
read:
   276.3.  (a) In the event that property receiving a disabled
veterans' exemption as described in Section 205.5 is sold or
otherwise transferred to a person who is not eligible for that
exemption, the exemption shall cease to apply on the date of that
sale or transfer.
   (b) In the event that property receiving a disabled veterans'
exemption as described in Section 205.5 is no longer used by a
claimant as his or her principal place of residence, the exemption
shall cease to apply on the date the claimant terminates his or her
residency at that location.
   (c) Termination of the exemption under this section shall result
in an escape assessment of the property pursuant to Section 531.1.
  SEC. 25.  Section 441 of the Revenue and Taxation Code is amended
to read:
   441.  (a) Each person owning taxable personal property, other than
a manufactured home subject to Part 13 (commencing with Section
5800), having an aggregate cost of one hundred thousand dollars
($100,000) or more for any assessment year shall file a signed
property statement with the assessor.  Every person owning personal
property that does not require the filing of a property statement or
real property shall, upon request of the assessor, file a signed
property statement.  Failure of the assessor to request or secure the
property statement does not render any assessment invalid.
   (b) The property statement shall be declared to be true under the
penalty of perjury and filed annually with the assessor between the
lien date and 5 p.m. on April 1.  The penalty provided by Section 463
applies for property statements not filed by May 7.  If May 7 falls
on a Saturday, Sunday, or legal holiday, a property statement that is
mailed and postmarked on the next business day shall be deemed to
have been filed between the lien date and 5 p.m. on May 7.  If, on
the dates specified in this subdivision, the county's offices are
closed for the entire day, that day is considered a legal holiday for
purposes of this section.
   (c) The property statement may be filed with the assessor through
the United States mail, properly addressed with postage prepaid.  For
purposes of determining the date upon which the property statement
is deemed filed with the assessor, the date of postmark as affixed by
the United States Postal Service, or the date certified by a bona
fide private courier service on the envelope containing the
application, shall control.  This subdivision shall be applicable to
every taxing agency, including, but not limited to, a chartered city
and county, or chartered city.
   (d) At any time, as required by the assessor for assessment
purposes, every person shall make available for examination
information or records regarding his or her property or any other
personal property located on premises he or she owns or controls.  In
this connection details of property acquisition transactions,
construction and development costs, rental income, and other data
relevant to the determination of an estimate of value are to be
considered as information essential to the proper discharge of the
assessor's duties.
   (e) In the case of a corporate owner of property, the property
statement shall be signed either by an officer of the corporation or
an employee or agent who has been designated in writing by the board
of directors to sign the statements on behalf of the corporation.
   (f) In the case of property owned by a bank or other financial
institution and leased to an entity other than a bank or other
financial institution, the property statement shall be submitted by
the owner bank or other financial institution.
   (g) The assessor may refuse to accept any property statement he or
she determines to be in error.
   (h) If a taxpayer fails to provide information to the assessor
pursuant to subdivision (d) and introduces any requested materials or
information at any assessment appeals board hearing, the assessor
may request and shall be granted a continuance for a reasonable
period of time.  The continuance shall extend the two-year period
specified in subdivision (c) of Section 1604 for a period of time
equal to the period of the continuance.
   (i) Notwithstanding any other provision of law, every person
required to file a property statement pursuant to this section shall
be permitted to amend that property statement until May 31 of the
year in which the property statement is due, for errors and omissions
not the result of willful intent to erroneously report.  The penalty
authorized by Section 463 shall not apply to an amended statement
received prior to May 31, provided the original statement is not
subject to penalty pursuant to subdivision (b).  The amended property
statement shall otherwise conform to the requirements of a property
statement as provided in this article.
   (j) This subdivision shall apply to the oil, gas, and mineral
extraction industry only.  Any information that is necessary to file
a true, correct, and complete statement shall be made available by
the assessor, upon request, to the taxpayer by mail or at the office
of the assessor by February 28.  For each business day beyond
February 28 that the information is unavailable, the filing deadline
in subdivision (b) shall be extended in that county by one business
day, for those statements affected by the delay.  In no case shall
the filing deadline be extended beyond June 1 or the first business
day thereafter.
   (k) The assessor may accept the filing of a property statement by
the use of electronic media.  In lieu of the signature required by
subdivision (a) and the declaration under penalty of perjury required
by subdivision (b), property statements filed using electronic media
shall be authenticated pursuant to methods specified by the assessor
and approved by the board.  Electronic media includes, but is not
limited to, computer modem, magnetic media, optical disk, and
facsimile machine.
  SEC. 26.  Section 441.5 of the Revenue and Taxation Code is amended
to read:
   441.5.  In lieu of completing the property statement as printed by
the assessor pursuant to Section 452, the information required of
the taxpayer may be furnished to the assessor as attachments to the
property statement provided that the attachments shall be in a format
as specified by the assessor and:  (a) one copy of the property
statement, as printed by the assessor, is signed by the taxpayer and
carries appropriate reference to the data attached; or (b) the
statement is filed electronically and authenticated as provided in
subdivision (k) of Section 441.
  SEC. 27.  Section 480.4 of the Revenue and Taxation Code is amended
to read:
   480.4.  (a) The preliminary change of ownership report referred to
in Section 480.3 shall be in substantially the following form:
   (b) The State Board of Equalization may revise the preliminary
change of ownership report, as necessary, for the purpose of
maintaining statewide uniformity in the contents of the report.
   (c) This section shall become operative on July 1, 1991.
  SEC. 28.  Section 482 of the Revenue and Taxation Code is amended
to read:
   482.  (a) If a person or legal entity required to file a statement
described in Section 480 fails to do so within 45 days from the date
of a written request by the assessor, a penalty of either:  (1) one
hundred dollars ($100), or (2) 10 percent of the taxes applicable to
the new base year value reflecting the change in ownership of the
real property or manufactured home, whichever is greater, but not to
exceed two thousand five hundred dollars ($2,500) if the failure to
file was not willful, shall, except as otherwise provided in this
section, be added to the assessment made on the roll.  The penalty
shall apply for failure to file a complete change in ownership
statement notwithstanding the fact that the assessor determines that
no change in ownership has occurred as defined in Chapter 2
(commencing with Section 60) of
     Part 0.5.  The penalty may also be applied if after a request
the transferee files an incomplete statement and does not supply the
missing information upon a second request.
   (b) If a person or legal entity required to file a statement
described in Section 480.1 or 480.2 fails to do so within 45 days
from the date of a written request by the State Board of
Equalization, a penalty of 10 percent of the taxes applicable to the
new base year value reflecting the change in control or change in
ownership of the real property owned by the corporation, partnership,
or legal entity, or 10 percent of the current year's taxes on that
property if no change in control or change in ownership occurred,
shall be added to the assessment made on the roll.  The penalty shall
apply for failure to file a complete statement notwithstanding the
fact that the board determines that no change in control or change in
ownership has occurred as defined in subdivision (c) or (d) of
Section 64.  The penalty may also be applied if after a request the
person or legal entity files an incomplete statement and does not
supply the missing information upon a second request.  That penalty
shall be in lieu of the penalty provisions of subdivision (a).
However, the penalty added by this subdivision shall be automatically
extinguished if the person or legal entity files a complete
statement described in Section 480.1 or 480.2 no later than 60 days
after the date on which the person or legal entity is notified of the
penalty.
   (c) The penalty for failure to file a timely statement pursuant to
Sections 480, 480.1, and 480.2 for any one transfer may be imposed
only one time, even though the assessor may initiate a request as
often as he or she deems necessary.
   (d) The penalty shall be added to the roll in the same manner as a
special assessment and treated, collected, and subject to the same
penalties for the delinquency as all other taxes on the roll in which
it is entered.
   (1) When the transfer to be reported under this section is of a
portion of a property or parcel appearing on the roll during the
fiscal year in which the 45-day period expires, the current year's
taxes shall be prorated so the penalty will be computed on the
proportion of property which has transferred.
   (2) Any penalty added to the roll pursuant to this section between
January 1 and June 30 may be entered either on the unsecured roll or
the roll being prepared.  After January 1, the penalty may be added
to the current roll only with the approval of the tax collector.
   (3) If the property is transferred or conveyed to a bona fide
purchaser for value or becomes subject to a lien of a bona fide
encumbrancer for value after the transfer of ownership resulting in
the imposition of the penalty and before the enrollment of the
penalty, the penalty shall be entered on the unsecured roll in the
name of the transferee whose failure to file the change in ownership
statement resulted in the imposition of the penalty.
   (e) When a penalty imposed pursuant to this section is entered on
the unsecured roll, the tax collector may immediately file a
certificate authorized by Section 2191.3.
   (f) Notice of any penalty added to either the secured or unsecured
roll pursuant to this section shall be mailed by the assessor to the
transferee at his or her address contained in any recorded
instrument or document evidencing a transfer of an interest in real
property or manufactured home or at any address reasonably known to
the assessor.
  SEC. 29.  Section 531.1 of the Revenue and Taxation Code is amended
to read:
   531.1.  Upon the termination of an exemption pursuant to Section
276.3, upon receipt of a notice pursuant to Section 284, or upon
indication from any audit or other source that an exemption has been
incorrectly allowed, the assessor shall make a redetermination of
eligibility for the exemption.  If an exemption or any portion of an
exemption has been terminated or has been incorrectly allowed, an
escape assessment in the amount of the exemption, or that portion of
the exemption that has been terminated or erroneously allowed, with
interest as provided in Section 506, shall be made; except that where
the exemption was terminated pursuant to Section 276.3 or where the
exemption or a portion of the exemption was allowed as the result of
an assessor's error, the amount of interest shall be forgiven.  If
the exemption was incorrectly allowed because of erroneous or
incorrect information submitted by the claimant with knowledge that
the information was erroneous or incomplete, the penalty provided in
Section 504 shall be added to the assessment.
  SEC. 30.  Section 531.9 is added to the Revenue and Taxation Code,
to read:
   531.9.  A county board of supervisors may, by ordinance, prohibit
an assessor from making an escape assessment of an appraisal unit
where that assessment would result in an amount of taxes due which is
less than the cost of assessing and collecting them.  In no event
may the ordinance apply to any escape assessment of an appraisal unit
if the amount of taxes resulting from the escape assessment would
exceed fifty dollars ($50).
  SEC. 31.  Section 620.5 of the Revenue and Taxation Code is
repealed.
  SEC. 32.  Section 755 of the Revenue and Taxation Code is amended
to read:
   755.  (a) On or before July 15, the board shall transmit to each
county auditor an estimate of the total unitary value and operating
nonunitary value of state-assessed property in the county and of
nonunitary state-assessed property in each revenue district in the
county.  An estimate need not be made for a revenue district that did
not levy a tax or assessment during the preceding year unless the
board receives on or before January 1 preceding the fiscal year for
which the levy is to be made a notice in writing of the proposed
levy.  The estimate shall be regarded as establishing the total
assessed value of state-assessed property in the county and each
revenue district in the county for the purpose of determining tax
rates, subject only to those changes as may be transmitted on or
prior to July 31.  All information furnished pursuant to this section
is at all times during office hours open to inspection by any
interested person or entity.
   (b) Notwithstanding subdivision (a), in making the estimate
referred to in subdivision (a), the unitary value and nonunitary
value of the property of regulated railway companies and property
subject to subdivisions (i), (j), and (k) of Section 100 shall be
allocated by revenue district.
  SEC. 33.  Section 756 of the Revenue and Taxation Code is amended
to read:
   756.  (a) On or before July 31, the board shall transmit to each
county auditor a roll showing the unitary and operating nonunitary
assessments made by the board in the county and the nonoperating
nonunitary assessments made by the board in each city and revenue
district in the county; provided, however, that the roll need not
show the assessments made by the board in a revenue district which
did not levy a tax or assessment during the preceding year.  The roll
is at all times, during office hours, open to the inspection of any
person representing any taxing agency or revenue district, or any
district described in Section 2131.  If the roll does not show the
assessments in a revenue district as herein provided and a notice of
a proposed levy is furnished the board in writing, on or before
January 1 preceding the fiscal year for which the levy is to be made,
the board shall furnish an estimate of the total assessed value of
nonoperating nonunitary state-assessed property in the district and
shall transmit thereafter to the county auditor a statement of roll
change showing the nonoperating nonunitary assessments made by the
board in the district.
   (b) Notwithstanding subdivision (a), in making the roll referred
to in subdivision (a), the unitary value and nonunitary value of the
property of regulated railway companies and property subject to
subdivisions (i), (j), and (k) of Section 100 shall be enrolled by
revenue district.
  SEC. 34.  Section 1603 of the Revenue and Taxation Code is amended
to read:
   1603.  (a) A reduction in an assessment on the local roll shall
not be made unless the party affected or his or her agent makes and
files with the county board a verified, written application showing
the facts claimed to require the reduction and the applicant's
opinion of the full value of the property.  The form for the
application shall be prescribed by the State Board of Equalization.
   (b) (1) The application shall be filed within the time period from
July 2 to September 15, inclusive.  An application that is mailed
and postmarked September 15 or earlier within that period shall be
deemed to have been filed within the time period beginning July 2 and
continuing through and including September 15.
   (2) Notwithstanding paragraph (1), if the taxpayer does not
receive the notice of assessment described in Section 619 at least 15
calendar days prior to the deadline to file the application
described in this subdivision, the party affected, or his or her
agent, may file an application within 60 days of receipt of the
notice of assessment or within 60 days of the mailing of the tax
bill, whichever is earlier, along with an affidavit declaring under
penalty of perjury that the notice was not timely received.
   (3) Notwithstanding paragraph (1), the last day of the filing
period shall be extended to November 30 in the case of an assessee or
party affected with respect to all property located in a county
where the county assessor does not provide, by August 1, a notice, as
described in Section 619, to all assessees of real property on the
local secured roll of the assessed value of their real property as it
shall appear or does appear on the completed local roll, including
the annual increases in assessed value caused solely by increases in
the valuation of property that reflect the inflation rate, not to
exceed 2 percent, pursuant to the authority of subdivision (b) of
Section 2 of Article XIII A of the California Constitution.
   (A) The county assessor shall notify the clerk of the county board
of equalization and the county tax collector by April 1 of each year
as to whether the notice specified in this paragraph will be
provided by August 1.
   (B) The clerk shall certify the last day of the filing period and
shall immediately notify the State Board of Equalization as to
whether the last day of the filing period for the county will be
September 15 or November 30.
   (C) The State Board of Equalization shall maintain a statewide
listing of the time period to file an application in each county.
   (D) The provisions of Section 621 may not be substituted as a
means of providing the notice specified in this paragraph.
   (4) If a final filing date specified in this subdivision falls on
Saturday, Sunday, or a legal holiday, an application that is mailed
and postmarked on the next business day shall be deemed to have been
filed within the requisite time period specified in this subdivision.
  If on any final filing date specified in this subdivision, the
county's offices are closed for business prior to 5 p.m. or for that
entire day, that day shall be considered a legal holiday for purposes
of this section.
   (c) The application may be filed within 12 months following the
month in which the assessee is notified of the assessment, if the
party affected or his or her agent and the assessor stipulate that
there is an error in the assessment as the result of the exercise of
the assessor's judgment in determining the full cash value of the
property and a written stipulation as to the full cash value and
assessed value is filed in accordance with Section 1607.
   (d) Upon the recommendation of the assessor and the clerk of the
county board of equalization, the board of supervisors may adopt a
resolution providing that an application may be filed within 60 days
of the mailing of the notice of the assessor's response to a request
for reassessment pursuant to paragraph (2) of subdivision (a) of
Section 51, if all of the following conditions are met:
   (1) The request for reassessment was submitted in writing to the
assessor in the form prescribed by the State Board of Equalization
and includes all information that is prescribed by the State Board of
Equalization.
   (2) The request for reassessment was made on or before the
immediately preceding March 15.
   (3) The assessor's response to the request for reassessment was
mailed on or after September 1 of the calendar year in which the
request for reassessment was made.
   (4) The assessor did not reduce the assessment in question in the
full amount as requested.
   (5) The application for changed assessment is filed on or before
December 31 of the year in which the request for reassessment was
filed.
   (6) The application for reduction in assessment is accompanied by
a copy of the assessor's response to the request for reassessment.
   (e) In the form provided for making an application pursuant to
this section, there shall be a notice that written findings of facts
of the local equalization hearing will be available upon written
request at the requester's expense and, if not so requested, the
right to those written findings is waived.  The form shall provide
appropriate space for the applicant to request written findings of
facts as provided by Section 1611.5.
   (f) The form provided for making an application pursuant to this
section shall contain the following language in the signature block:

   I certify (or declare) under penalty of perjury under the laws of
the State of California that the foregoing and all information
hereon, including any accompanying statements or documents, is true,
correct, and complete to the best of my knowledge and belief and that
I am (1) the owner of the property or the person affected (i.e., a
person having a direct economic interest in the payment of the taxes
on that property--"The Applicant," (2) an agent authorized by the
applicant under Item 2 of this application, or (3) an attorney
licensed to practice law in the State of California, State Bar No.
____, who has been retained by the applicant and has been authorized
by that person to file this application.
  SEC. 35.  Section 2611.6 of the Revenue and Taxation Code is
amended to read:
   2611.6.  The following information shall be included in each
county tax bill, whether mailed or electronically transmitted, or in
a separate statement accompanying the bill:
   (a) The full value of locally assessed property, including
assessments made for irrigation district purposes in accordance with
Section 26625.1 of the Water Code.
   (b) The tax rate required by Article XIII A of the California
Constitution.
   (c) The rate or dollar amount of taxes levied in excess of the
1-percent limitation to pay for voter-approved indebtedness incurred
before July 1, 1978, or bonded indebtedness for the acquisition or
improvement of real property approved by two-thirds of the voters on
or after June 4, 1986.
   (d) The amount of any special taxes and special assessments
levied.
   (e) The amount of any tax rate reduction pursuant to Section 96.8,
with the notation:  "Tax reduction by (name of jurisdiction)."
   (f) The amount of any exemptions.  Exemptions reimbursable by the
state shall be shown separately.
   (g) The total taxes due and payable on the property covered by the
bill.
   (h) Instructions on tendering payment, including the name and
mailing address of the tax collector.
   (i) The billing of any special purpose parcel tax as required by
paragraph (2) of subdivision (b) of Section 53087.4 of the Government
Code, or any successor to that paragraph.
   (j) Information specifying all of the following:
   (1) That if the taxpayer disagrees with the assessed value as
shown on the tax bill, the taxpayer has the right to an informal
assessment review by contacting the assessor's office.
   (2) That if the taxpayer and the assessor are unable to agree on a
proper assessed value pursuant to an informal assessment review, the
taxpayer has the right to file an application for reduction in
assessment for the following year with the county board of
equalization or the assessment appeals board, as applicable, and the
time period during which the application will be accepted.
   (3) The address of the clerk of the county board of equalization
or the assessment appeals board, as applicable, at which forms for an
application for reduction in assessment may be obtained.
  SEC. 36.  Section 5801 of the Revenue and Taxation Code is amended
to read:
   5801.  (a) As used in Part 0.5 (commencing with Section 50), Part
1 (commencing with Section 101), Part 2 (commencing with Section
201), and this part, "manufactured home" means a manufactured home as
defined in Section 18007 of the Health and Safety Code or a
mobilehome as defined in Section 18008 of the Health and Safety Code
which:
   (1) Was first sold new on or after July 1, 1980.
   (2) Was, at the request of the owner, and following his or her
notification of the Department of Housing and Community Development
and the assessor, made subject to taxation under this part.
   (b) (1) "Manufactured home," as used in this part, does not
include a manufactured home which has become real property by being
affixed to land on a permanent foundation system pursuant to Section
18551 of the Health and Safety Code and is taxed as all other real
property is taxed.
   (2) Except as provided in paragraph (1), a manufactured home,
otherwise subject to taxation pursuant to this part, shall not be
classified as real property for property taxation purposes that would
be excluded from taxation pursuant to this part.
  SEC. 36.5.  Section 5802 of the Revenue and Taxation Code is
amended to read:
   5802.  (a) Except as provided in subdivisions (b), (c), and (d),
"base year value" as used in this part means the full cash value of a
manufactured home on the date the manufactured home is purchased or
changes ownership.  If the manufactured home undergoes any new
construction after it is purchased or changes ownership, the base
year value of the new construction is its full cash value on the date
on which the new construction is completed, and if uncompleted, on
the lien date.
   (b) The base year value of a manufactured home for which the
license fee is delinquent shall be its full cash value on the lien
date for the fiscal year in which it is first enrolled.
   (c) The base year value of a manufactured home converted pursuant
to Section 18119 of the Health and Safety Code from taxation under
Part 5 (commencing with Section 10701) of Division 2 to taxation
under this part shall be its full cash value on the lien date for the
fiscal year in which that manufactured home is first enrolled.  A
manufactured home that has been converted is not subject to
supplemental assessment pursuant to Section 75.5 by reason of the
conversion.
   (d) The base year value of a manufactured home that changes
ownership in the same calendar year after a conversion in the same
calendar year, shall be its full cash value on the date of the change
in ownership and its value shall be enrolled on the next lien date.
The change in ownership is not subject to supplemental assessment as
provided in Section 75.5.
   (e) This section shall become operative on January 1, 1999.
  SEC. 37.  Section 5803 of the Revenue and Taxation Code is amended
to read:
   5803.  (a) "Full cash value" means the "full cash value" or the
"fair market value," as determined pursuant to Section 110, of a
manufactured home similarly equipped and installed, including any
value attributable to a manufactured home accessory building or
structure as defined in Section 18008.5 of the Health and Safety Code
which is sold along with the manufactured home, giving recognition,
however, to the exemption provided in subdivision (m) of Section 3 of
Article XIII of the Constitution.
   (b) The Legislature finds and declares that, because owners of
manufactured homes subject to property taxation on rented or leased
land do not own the land on which the manufactured home is located
and are subject to having the manufactured home removed upon
termination of tenancy, "full cash value" for purposes of subdivision
(a) does not include any value attributable to the particular site
where the manufactured home is located on rented or leased land which
would make the sale price of the manufactured home at that location
different from its price at some other location on rented or leased
land.  In determining the "full cash value" of a manufactured home on
rented or leased land, the assessor shall take into consideration,
among other relevant factors, cost data issued pursuant to Section
401.5 or sales prices listed in recognized value guides for
manufactured homes, including, but not limited to, the Kelley Blue
Book Official Manufactured Housing Guide and the National Automobile
Dealers Association's Manufactured Housing Appraisal Guide.
  SEC. 38.  Section 5811 of the Revenue and Taxation Code is amended
to read:
   5811.  The amount of local property tax on a manufactured home
shall be determined by applying the appropriate assessment ratio and
tax rate to the taxable value of the manufactured home.  The
"appropriate tax rate" is the rate determined under Section 93 for
the tax rate area in which the manufactured home is situated.
  SEC. 39.  Section 5812 of the Revenue and Taxation Code is amended
to read:
   5812.  (a) The base year value of a manufactured home which is
purchased or which changed ownership shall be entered on the roll for
the lien date next succeeding the date of the purchase or change in
ownership.  The value of any new construction shall be entered on the
roll for the lien date next succeeding the date of completion of the
new construction.  The value of new construction in progress on the
lien date shall be entered on the roll as of the lien date.
   (b) Except as provided in subdivisions (c) and (d) of Section
5802, a manufactured home that has changed ownership or had new
construction completed is subject to supplemental assessment as
provided in Section 75.5.
  SEC. 40.  Section 5813 of the Revenue and Taxation Code is amended
to read:
   5813.  For each lien date after the lien date for which the base
year value is determined, the taxable value of a manufactured home
shall be the lesser of:
   (a) Its base year value, compounded annually since the base year
by an inflation factor, which shall be the percentage change in the
cost of living, as defined in Section 51, provided, that any
percentage increase shall not exceed 2 percent of the prior year's
value; or
   (b) Its full cash value, as defined in Section 5803, as of the
lien date, taking into account reductions in value due to damage,
destruction, depreciation, obsolescence, or other factors causing a
decline in value; or
   (c) If the manufactured home is damaged or destroyed by disaster,
misfortune, or calamity, its value determined pursuant to (b) shall
be its base year value until the manufactured home is restored,
repaired or reconstructed or other provisions of law require
establishment of a new base year value.
  SEC. 41.  Section 5831 of the Revenue and Taxation Code is amended
to read:
   5831.  (a) Except as provided in subdivisions (e) and (f), the
assessor shall, upon or prior to completion of the local roll, notify
each assessee whose manufactured home's taxable value has increased
of the taxable value of that manufactured home as it shall appear on
the completed local roll.
   (b) The information given by the assessor to the assessee pursuant
to subdivision (a) shall include a notification of hearings by the
county board of equalization or assessment appeals board, which shall
include the period during which assessment protests will be accepted
and the place where they may be filed.  The information shall also
include an explanation of the stipulation procedure set forth in
Section 1607 and the manner in which the assessee may request use of
this procedure.
   (c) The information shall be furnished by the assessor to the
assessee personally or by regular United States mail directed to him
or her at the latest address known to the assessor.
   (d) Neither the failure of the assessee to receive the information
nor the failure of the assessor to so inform the assessee shall in
any way affect the validity of any assessment or the validity of any
taxes levied pursuant thereto.
   (e) This section shall not apply to annual increases in the
valuation of property which reflect the inflation rate, not to exceed
2 percent, pursuant to Section 5813.
   (f) This section does not apply to increases in assessed value
caused solely by changes in the assessment ratio provided for in
Section 401.
  SEC. 42.  Section 7205.1 of the Revenue and Taxation Code is
amended to read:
   7205.1.  (a) Notwithstanding any other provision of law, in
connection with any use tax imposed pursuant to this part with
respect to the lease (as described in Sections 371 and 372 of the
Vehicle Code) of a new or used motor vehicle as defined in
subdivision (d), by a dealer or leasing company, the place of use for
the reporting and transmittal of the use tax shall be determined as
follows:
   (1) If the lessor is a California new motor vehicle dealer (as
defined in Section 426 of the Vehicle Code), or a leasing company,
the place of use of the leased vehicle shall be deemed to be the city
in which the lessor's place of business (as defined in Section 7205
and the regulations promulgated thereunder) is located.
   (2) If a lessor, who is not a person described in paragraph (1),
purchases the vehicle from a person as so described, the place of use
of the leased vehicle shall be deemed to be the city in which the
place of business (as defined in Section 7205 and the regulations
promulgated thereunder) of the person from whom the lessor purchases
the vehicle is located.
   (3) The place of use as determined by this subdivision shall be
the place of use for the duration of the lease contract,
notwithstanding the fact that the lessor may sell the vehicle and
assign the lease contract to a third party.
   (b) Except as described in subdivision (a), this section shall not
apply if the dealer or leasing company entering into the lease
agreement is located outside of California.
   (c) (1) The provisions of this section that are applicable to a
California new motor vehicle dealer shall apply to lease transactions
entered into on or after January 1, 1996.
                                                           (2) The
provisions of this section, applicable to a leasing company, shall
apply to lease transactions entered into on or after January 1, 1999.

   (d) As used in this section, the following definitions shall
apply:
   (1) "City" means a city, city and county, or county.
   (2) "Motor vehicle" means any self-propelled passenger vehicle
(other than a house car) or pickup truck rated less than one ton.
   (3) "Leasing company" means a motor vehicle dealer (as defined in
Section 285 of the Vehicle Code), that complies with all of the
following:
   (A) The dealer originates lease contracts, described in
subdivision (a), that are continuing sales and purchases.
   (B) The dealer does not sell or assign those lease contracts that
it originates in accordance with subparagraph (A).
   (C) (i) The dealer has annual motor vehicle lease receipts of
fifteen million dollars ($15,000,000) or more per location.
   (ii) For purposes of this subparagraph, only those periodic
payments required by the lease shall be considered in determining
whether a lessor has annual receipts of fifteen million dollars
($15,000,000) or more.  Amounts received by lessors attributable to
capitalized cost reductions or amounts paid by a lessee upon his or
her exercising an option shall not be considered in determining
whether a lessor has annual lease receipts of fifteen million dollars
($15,000,000) or more.
   (e) If the lessor is not a dealer described in paragraph (1) of
subdivision (a), or a person who is described in paragraph (2) of
subdivision (a) as purchasing from a dealer, the use tax shall be
reported to and distributed through the countywide pool of the county
in which the lessee resides.
  SEC. 43.  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. 44.  Notwithstanding Section 17610 of the Government Code, 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.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.