BILL NUMBER: AB 1700	CHAPTERED
	BILL TEXT

	CHAPTER  781
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2012
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2012
	PASSED THE SENATE  AUGUST 13, 2012
	PASSED THE ASSEMBLY  MAY 7, 2012
	AMENDED IN ASSEMBLY  APRIL 17, 2012

INTRODUCED BY   Assembly Member Butler

                        FEBRUARY 15, 2012

   An act to add Section 62.3 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1700, Butler. Property taxation: change in ownership:
exclusion: cotenancy interests.
   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. Existing property tax law specifies those
circumstances in which the transfer of ownership interests results in
a change in ownership of the real property, and provides that
certain transfers do not result in a change of ownership.
   This bill would provide that a transfer of a cotenancy interest,
as defined, in real property from one cotenant to the other that
takes effect upon the death of the transferor cotenant and that
occurs on or after January 1, 2013, does not constitute a change of
ownership, as provided. This bill would require the transferee
cotenant to sign an affidavit, as specified, under penalty of
perjury.
   By imposing new duties upon local tax officials with respect to
changes in ownership of real property, and by requiring the
transferor cotenant to sign an affidavit under penalty of perjury
which would expand the scope of the existing crime of perjury, this
bill would impose a state-mandated local program.
   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.
   This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
   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.
   This bill would take effect immediately as a tax levy.


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

  SECTION 1.  Section 62.3 is added to the Revenue and Taxation Code,
to read:
   62.3.  (a) Notwithstanding any other provision in this chapter, a
change in ownership shall not include a transfer of a cotenancy
interest in real property from one cotenant to the other that takes
effect upon the death of the transferor cotenant if all of the
following conditions apply:
   (1) The transfer is solely by and between two individuals who
together own 100 percent of the real property in joint tenancy or as
tenants in common.
   (2) As a result of the death of the transferor cotenant, the
deceased cotenant's tenancy in common or joint tenancy interest in
the real property is transferred to the surviving cotenant, which
results in the surviving cotenant holding a 100-percent ownership
interest in the real property immediately after the transfer, thereby
terminating the cotenancy.
   (3) For the one-year period immediately preceding the transfer,
the real property was coowned by the transferor and the transferee,
and both cotenants have been the owners of record of that real
property.
   (4) The real property constituted the principal residence of both
cotenants immediately preceding the transferor cotenant's death.
   (5) The transferor and the transferee continuously resided at that
residence for the one-year period immediately preceding the
transfer.
   (6) The transferee has signed, under penalty of perjury, an
affidavit affirming that he or she continuously resided with the
transferor at the residence for the one-year period immediately
preceding the transfer.
   (b) A transfer of cotenancy interest in real property from one
cotenant to the other shall take effect upon the death of the
transferor cotenant under any of the following circumstances:
   (1) Pursuant to the transferor cotenant's will or trust, upon the
death of the transferor cotenant.
   (2) Through intestate succession from the transferor cotenant.
   (3) By operation of law, upon the death of the transferor
cotenant.
   (c) The exclusion provided by this section shall not apply to any
transfer of real property interests for which a separate exclusion in
this chapter applies.
   (d) For purposes of this section, both of the following apply:
   (1) "Cotenancy interest" means an interest in real property held
only as tenants in common or joint tenants.
   (2) "Principal residence" means a dwelling eligible for either the
homeowners' exemption or the disabled veterans' exemption.
   (e) This section shall only apply to transfers that occur on or
after January 1, 2013.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
   However, if the Commission on State Mandates determines that this
act contains other 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.
  SEC. 3.  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. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.