BILL NUMBER: AB 2182	CHAPTERED  09/22/06

	CHAPTER  417
	FILED WITH SECRETARY OF STATE  SEPTEMBER 22, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 22, 2006
	PASSED THE ASSEMBLY  AUGUST 31, 2006
	PASSED THE SENATE  AUGUST 29, 2006
	AMENDED IN SENATE  AUGUST 28, 2006
	AMENDED IN ASSEMBLY  MARCH 27, 2006

INTRODUCED BY   Assembly Member Mullin
   (Coauthor: Assembly Member Wolk)

                        FEBRUARY 22, 2006

   An act to add Section 401.20 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2182, Mullin  Property taxation: assessment.
   Existing law requires the State Board of Equalization to prescribe
rules and regulations regarding the assessment of property for
purposes of property taxation.
   This bill would require the State Board of Equalization, if funds
are appropriated for this purpose, to conduct a study in consultation
with the California Assessors' Association and industry
representatives regarding the property tax assessment factors used to
value nonproduction computers, semiconductor manufacturing
equipment, and biopharmaceutical industry equipment and fixtures. To
the extent the board conducts these studies, this bill would also
require the board to publish revised valuation factors. However, if
the board determines that an update is not warranted after reviewing
the data, this bill would provide that the existing factors shall
remain in effect. This bill would establish a rebuttable presumption
that the full cash value of nonproduction computers, semiconductor
manufacturing equipment, and biopharmaceutical industry equipment and
fixtures is the value determined using the assessment factors
published by the board after the study. This bill would also provide
that the assessor or the taxpayer may overcome the presumption, as
specified. This bill would also specify that this presumption does
not apply after 6 years, unless the assessment factors are reviewed
by the board.


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


  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) The property used in certain high technology focused
industries is subject to the rapid pace of technological change.
   (2) The annual valuation factors currently published by the State
Board of Equalization that are used to assess this property is based
upon dated studies, causing the validity of these factors to be
questioned and giving rise to costly and time-consuming assessment
appeals and litigation.
   (3) A new study would allow the development of objective and
defensible valuation factors and ensure more accurate assessments.
   (4) The uncertainty created by pending appeals and litigation over
the valuation of this property is disruptive to industry tax
planning, local government finance, and school finance.
   (b) It is the intent of the Legislature in enacting this act to do
both of the following:
   (1) Facilitate uniform assessment practices in the assessment of
this property within the State of California.
   (2) Facilitate the resolution of disputes over the assessment of
this property by clearly establishing a presumption of correctness if
county assessors use a prescribed assessment methodology.
  SEC. 2.  Section 401.20 is added to the Revenue and Taxation Code,
to read:
   401.20.  (a) (1)  The State Board of Equalization shall, in
consultation with the California Assessors' Association and
representatives of the computer, semiconductor, and biopharmaceutical
industries, conduct a study to obtain and analyze data in order to
update the information used to develop the valuation factors annually
published by the State Board of Equalization that are applied to
nonproduction computers, semiconductor manufacturing equipment, and
biopharmaceutical industry equipment and fixtures.
   (2) The State Board of Equalization shall conduct the study
described in paragraph (1) only if funds are appropriated by the
Legislature to the board for that purpose during the 2005-06 Regular
Session.
   (3) To the extent the State Board of Equalization periodically
conducts these studies, the board shall publish revised valuation
factors based on the updated information. If the board reviews the
data and determines that an update is not warranted, the existing
factors shall remain in effect.
   (b) (1) Notwithstanding any other provision of law relating to the
determination of the values for property tax assessment, values
determined by using valuation factors resulting from the study
described in subdivision (a), as instructed by the State Board of
Equalization for nonproduction computers, semiconductor manufacturing
equipment, and biopharmaceutical industry equipment and fixtures,
shall be rebuttably presumed to be the full cash value.
   (2) The assessor or the taxpayer shall have the right to present
evidence supporting values different from those based on the
published factors in order to attempt to overcome the presumption.
   (c) The presumption in subdivision (b) shall not apply to any
particular tax year if the information upon which the valuation
factors for that category of property are based was last reviewed by
the State Board of Equalization more than six years before the lien
date for that tax year.