BILL NUMBER: AB 946 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 12, 2011
INTRODUCED BY Assembly Member Butler
FEBRUARY 18, 2011
An act to amend Section 279 95.31 of
the Revenue and Taxation Code, relating to taxation
local government finance .
LEGISLATIVE COUNSEL'S DIGEST
AB 946, as amended, Butler. Property tax exemption:
principal residence: veterans and their unmarried surviving spouses.
administration: loan program.
Existing property tax law provides, pursuant to the
authorization of the California Constitution, for the exemption from
property taxation of the principal residence of a disabled veteran, a
veteran's spouse, and the unmarried surviving spouse, in the case in
which the veteran has, as a result of a service-connected disease or
injury, died while on active duty in military service. Existing law
provides when that property becomes eligible for that exemption and
also provides when that eligibility terminates
authorized an eligible county, as defined, upon the recommendation of
the assessor and by resolution of its board of supervisors, to elect
to participate in the State-County Property Tax Administration
Program, pursuant to which a participating county received, in
specified fiscal years, a loan from the state, as
specified, for the purposes of providing supplemental funding for
that county's local administration of the ad valorem property tax
.
This bill would make technical, nonsubstantive changes
that would consolidate the provisions relating to the date when
property becomes eligible for the disabled veterans' exemption, and
would make other conforming changes. This bill would also make other
clarifying changes, including clarifying that the exemption
terminates for a unmarried surviving spouse of a disabled veteran
when that surviving spouse remarries reauthorize the
State-County Property Tax Administration Program to allow eligible
counties, as defined, to elect to participate in the program to
receive a loan in each fiscal year from the 2011-12 fiscal year to
the 2015-16 fiscal year, inclusive. This bill would also
require the California Assessors' Association to report to the Senate
Committee on Budget and Fiscal Review and the Assembly Committee on
Budget regarding participating counties, as specified .
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 95.31 of the Revenue
and Taxation Code is amended to read:
95.31. (a) (1) Notwithstanding any other provision of
law, any eligible county may, upon the recommendation of
the county assessor, and by resolution of the board of supervisors of
that county adopted not later than December
February 1 of the fiscal year for which it is to first apply,
elect to participate in the State-County Property Tax Administration
Loan Program.
(2) Except as specified in paragraph (3), for
For the purposes of this section, an eligible
county shall mean a county in which additional property tax revenue
allocated to school entities would reduce the amount of General Fund
moneys apportioned to school entities. However, eligibility shall be
terminated when, in combination with resources in the Educational
Revenue Augmentation Fund, additional property tax revenues allocated
to school entities will not result in a reduction in the General
Fund apportionments.
(3) Notwithstanding paragraph (2), both the County of Solano and
the County of San Benito shall be deemed eligible counties that may,
upon the recommendation of the county assessor, and by resolution of
the board of supervisors of the county adopted on or before March 31,
1996, elect to participate in the State-County Property Tax
Administration Loan Program.
(4) Notwithstanding paragraph (1), any county in which a new
assessor is elected in 1998 may, upon the recommendation of the
county assessor, and by resolution of the board of supervisors of the
county adopted on or before January 31, 1999, elect to participate
in the State-County Property Tax Administration Loan Program
commencing with the 1998-99 fiscal year.
(b) (1) In each fiscal year from the 1995-96
2011-12 fiscal year to the 2001-02
2015-16 fiscal year, inclusive, an eligible county
participating in the State-County Property Tax Administration Loan
Program may receive a loan for up to the amount listed in paragraph
(3). The loan shall be repaid by June 30 of the fiscal year following
the year in which the loan is made. However, at the discretion of
the Director of Finance, the loan may be renewed once for an
additional 12-month period at the request of the participating county
board of supervisors. For the Counties of Fresno, Orange,
San Benito, and Solano any loan agreement signed on or before July
31, 1996, shall be deemed a loan agreement for the 1995-96 fiscal
year for the purposes of this section. For any county in which a new
assessor is elected in 1998, any loan agreement signed on or before
January 31, 1999, shall be deemed a loan agreement for the 1998-99
fiscal year for the purposes of this section.
(2) If an eligible county elects to participate in the
State-County Property Tax Administration Loan Program, it shall enter
into a contractual agreement with the Department of Finance. At a
minimum, the contractual agreement shall include the following:
(A) The loan amount, as determined by the Director of Finance.
(B) Repayment provisions, including the interception of Motor
Vehicle License Fee Account moneys apportioned pursuant to Section
11005 to repay the General Fund.
(C) A listing of the proposed use of the additional resources
including, but not limited to:
(i) Proposed new positions.
(ii) Increased automation costs.
(D) An Commencing in the 2012 fiscal year,
an agreement to provide to the Department of Finance, by March
31 of the fiscal year in which the loan is made, a report projecting
the impact of the increased funding in the current and subsequent
fiscal year.
(E) An agreement to provide the Department of Finance an audit
report detailing the county's basis for satisfying the terms of the
loan agreement. The report shall be provided by October 1 of the
fiscal year following the year in which the loan is made.
(F) An agreement to use the funds for the purposes stated, and,
should any portion of the funds be diverted to a different,
unapproved use, to return an amount equal to the diverted funds to
the state regardless of whether or not other terms of the agreement
are satisfied.
(3) Upon request of the Department of Finance, the Controller
shall provide a loan to the following counties for up to the amount
specified by the Director of Finance, not to exceed the following
amounts:
Jurisdiction Amount
$
Alameda ......................... $
2,152,429
3,597,414.49
Alpine .......................... 3,124
50,000.00
Amador .......................... 80,865
84,884.74
Butte ........................... 381,956
339,221.56
Calaveras ....................... 109,897
125,711.59
Colusa .......................... 53,957
50,000.00
Contra Costa .................... 2,022,088
2,661,514.92
Del Norte ....................... 36,203
50,000.00
El Dorado ....................... 302,795
500,178.71
Fresno .......................... 1,165,249
1,070,650.34
Glenn ........................... 59,197
50,000.00
Humboldt ........................ 210,806
200,082.72
Imperial ........................ 231,673
194,085.89
Inyo ............................ 100,080
76,218.55
Kern ............................ 1,211,318
1,380,856.07
Kings ........................... 138,653
156,128.75
Lake ............................ 117,376
126,266.06
Lassen .......................... 54,699
50,000.00
Los Angeles ..................... 13,451,670
19,541,022.69
Madera .......................... 212,991
202,353.21
Marin ........................... 790,490
1,033,995.76
Mariposa ........................ 46,476
50,000.00
Mendocino ....................... 160,435
185,211.95
Merced .......................... 298,004
309,114.75
Modoc ........................... 24,022
50,000.00
Mono ............................ 47,778
108,273.73
Monterey ........................ 795,819
911,532.24
Napa ............................ 366,020
495,016.41
Nevada .......................... 234,292
307,121.22
Orange .......................... 6,826,325
7,643,925.87
Placer .......................... 628,047
1,042,694.84
Plumas .......................... 80,606
70,809.37
Riverside ....................... 2,358,068
3,896,893.30
Sacramento ...................... 1,554,245
2,308,128.57
San Benito ...................... 90,408
111,129.49
San Bernardino .................. 2,139,938
3,114,103.20
San Diego ....................... 5,413,943
7,108,480.10
San Francisco ................... 1,013,332
2,735,297.69
San Joaquin ..................... 818,686
1,023,588.01
San Luis Obispo ................. 736,288
729,247.75
San Mateo ....................... 2,220,001
2,631,042.86
Santa Barbara ................... 926,817
1,114,551.00
Santa Clara ..................... 4,213,639
5,546,096.80
Santa Cruz ...................... 565,328
609,524.84
Shasta .......................... 342,399
285,322.39
Sierra .......................... 7,383
50,000.00
Siskiyou ........................ 91,164
76,546.32
Solano .......................... 469,207
754,150.47
Sonoma .......................... 1,035,049
1,246,693.76
Stanislaus ...................... 866,155
673,145.07
Sutter .......................... 147,436
149,209.53
Tehama .......................... 97,222
86,231.96
Trinity ......................... 24,913
50,000.00
Tulare .......................... 501,907
499,088.04
Tuolumne ........................ 126,067
120,823.06
Ventura ......................... 1,477,789
1,904,605.02
Yolo ............................ 278,309
373,673.88
Yuba ............................ 88,968
88,041.89
(4) The Department of Finance shall consider any or all of the
following items in determining the extent to which a county has
satisfied the terms and repaid the loan, pursuant to the contract, as
offered under this part:
(A) County performance as indicated by the State Board of
Equalization's sample survey required pursuant to Section 15640 of
the Government Code.
(B) Performance measures adopted by the California Assessors'
Association.
(C) Reduction of backlog of assessment appeals and Proposition 8
declines in value.
(D) County compliance with mandatory audits required by Section
469.
(E) Reduction of backlogs in new construction, changes in
ownership, and supplemental roll.
(F) Other measures, as determined by the Director of Finance.
(5) The Director of Finance shall notify the Controller of any
participating county that fails to comply with the terms of the
agreement, including the repayment of the loan. When the Controller
receives notice from the Director of Finance, the Controller shall
make an apportionment to the General Fund on behalf of the
participating county in the amount of that required payment for the
purpose of making that payment. The Controller shall make that
payment only from moneys credited to the Motor Vehicle License Fee
Account in the Transportation Tax Fund to which the participating
county is entitled at that time under Chapter 5 (commencing with
Section 11001) of Part 5 of Division 2, and shall thereupon reduce,
by the amount of the payment, the subsequent allocation or
allocations to which the county would otherwise be entitled under
that chapter.
(c) (1) Funds appropriated for purposes of this section shall be
used to enhance the property tax administration system by providing
supplemental resources. Amounts provided to any county as a loan
pursuant to this section shall not be used to supplant the current
level of funding. In order to participate in the State-County
Property Tax Administration Loan Program, a participating county
shall maintain a base staffing, including contract staff, and total
funding level in the county assessor's office, independent of the
loan proceeds provided pursuant to this act, equal to the levels in
the 1994-95 2011-12 fiscal year
exclusive of amounts provided to the assessor's office pursuant to
Item 9100-102-001 of the Budget Act of 1994. However, in a
county in which the 1994-95 funding level for the assessor's office
was higher than the 1993-94 level, the 1993-94 fiscal year staffing
and funding levels shall be considered the base year for purposes of
this section. Commencing with the 1996-97 fiscal year, if a county
was otherwise eligible but was unable to participate in this program
in the 1995-96 fiscal year because it did not meet the funding level
and staffing requirements of this paragraph, that county shall
maintain a base staffing, including contract staff, and total funding
level in the county assessor's office equal to the levels in the
1995-96 fiscal year.
(2) Prior to the assessor's recommendation for participation in
the State-County Property Tax Administration Loan Program, the
assessor shall consult with the county tax collector, and any other
county agency directly involved in property tax administration, to
discuss the needs of the program for the duration of the contractual
agreement.
(d) A participating county may establish a tracking system whereby
a work or function number is assigned to each appraisal or
administrative activity. That system should provide statistical data
on the number of production units performed by each employee and the
positive and negative change in assessed value attributable to the
activities performed by each employee.
(e) Notwithstanding Section 95.3, no amount of funds provided to
an eligible county pursuant to this section shall result in any
deduction from those property tax administrative costs that are
eligible for reimbursement pursuant to Section 95.3.
(f) At the request of the Department of Finance, the board shall
assist the Department of Finance in evaluating contracts entered into
pursuant to this section.
(g) On or before December 1, 2013, the California Assessors'
Association shall provide to the Senate Committee on Budget and
Fiscal Review and the Assembly Committee on Budget a report
summarizing the reports provided by participating counties.
SECTION 1. Section 279 of the Revenue and
Taxation Code is amended to read:
279. (a) Subject to the provisions regarding cancellations and
the limitation periods on refunds, property becomes eligible for the
disabled veterans' property tax exemption, as described in Section
205.5, as of:
(1) The effective date of a disability rating, as determined by
the United States Department of Veterans Affairs, that qualifies the
claimant for the exemption.
(2) The date a qualified claimant purchases a property that
constitutes the principal place of residence, provided residency is
established within 90 days of purchase.
(3) The date a qualified claimant establishes residency at a
property owned by the claimant or the spouse, as specified in
subdivision (a) of Section 205.5.
(4) The date the veteran died, as a result of a service-connected
injury or disease, in the case where the unmarried surviving spouse
is the claimant.
(b) A claim for the disabled veterans' property tax exemption
filed by a qualified claimant, once granted, shall remain in
continuous effect unless any of the following occurs:
(1) Title to the property changes.
(2) The owner does not occupy the dwelling as his or her principal
place of residence.
(A) If the claimant is confined to a hospital or other care
facility but principally resided at a dwelling immediately prior to
that confinement, the claimant will be deemed to occupy that same
dwelling as his or her principal place of residence on the lien date,
provided that the dwelling has not been rented or leased as
described in Section 205.5.
(B) If a person receiving the disabled veterans' exemption is not
occupying the dwelling because the dwelling was damaged in a
misfortune or calamity, the person will be deemed to occupy that same
dwelling as his or her principal place of residence, provided the
person's absence from the dwelling is temporary and the person
intends to return to the dwelling when possible to do so. Except as
provided in subparagraph (C), when a dwelling has been totally
destroyed, and thus no dwelling exists, the exemption provided by
Section 205.5 is not applicable until the structure has been replaced
and is occupied as a dwelling.
(C) A dwelling that was totally destroyed in a disaster for which
the Governor proclaimed a state of emergency, that qualified for the
exemption provided by Section 205.5 and has not changed ownership
since the disaster, will be deemed occupied by the person receiving a
disabled veterans' exemption provided the person intends to
reconstruct a dwelling on the property and occupy the dwelling as his
or her principal place of residence when it is possible to do so.
(3) The property is altered so that it is no longer a dwelling.
(4) The veteran is no longer disabled as defined in Section 205.5.
(5) The unmarried surviving spouse claimant remarries.
(c) The assessor of each county shall verify the continued
eligibility of each person receiving a disabled veterans' exemption,
and shall provide for a periodic audit of, and establish a control
system to monitor, disabled veterans' exemption claims.