BILL ANALYSIS Ó SB 947 Page 1 Date of Hearing: August 17, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 947 (Committee on Governance and Finance) - As Amended: June 29, 2011 Policy Committee: Local GovernmentVote:9-0 Revenue and Taxation 9-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill makes 14 non-controversial changes to property tax collection laws. FISCAL EFFECT There will be minor and absorbable costs for the Board of Equalization (BOE) to administer the provisions of the bill. The bill imposes a state-mandated local program but provides that no reimbursement is required for costs that may be incurred by a local agency or school district because they are related to changing an existing penalty. The bill also states that no local agency shall be reimbursed for any property tax revenues that are lost as a result of the changes in law. Nevertheless, the bill does provide a mechanism for reimbursement of mandated costs should the Commission on State Mandates determines that there are other reimbursable costs mandated by the state. Such costs are unlikely to be significant. COMMENTS 1)Purpose of this Bill . SB 947 enacts a multitude of minor changes to property tax law that is sponsored and approved unanimously by BOE. This bill is intended to improve the administration of property tax laws to help both taxpayers and tax administration agencies. According to the author, this bill contains only non-controversial items. SB 947 Page 2 2)Reimbursement of property tax. Existing law requires the state to reimburse local governments for any loss in property taxes from any legislative exemption or classification of property. This bill contains a specific exclusion that provides that any property tax losses will not be reimbursed. Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081