BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1464| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1464 Author: Senate Governance and Finance Committee Amended: As introduced Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 4/24/14 AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters SUBJECT : Property taxation SOURCE : State Board of Equalization DIGEST : This bill makes four technical, consensus changes to property tax law suggested by the State Board of Equalization (BOE). ANALYSIS : This bill contains four changes to property tax law suggested by the BOE: I. Name Change . State law directs the BOE to determine the interest rate on the capitalization rate that assessors use to value historic property using data published by the Federal Home Finance Board. However, the Federal Home Finance Board changed its name to the Federal Home Finance Agency. This bill updates the law to reflect the change. II Consistent Terms . When taxpayers file property tax appeals, the appellate body can be either the county board of CONTINUED SB 1464 Page 2 supervisors sitting as the county board of equalization, or the board can create an assessment appeals board consisting of members with specified qualifications. Unfortunately, some parts of property tax law don't consistently refer to both terms, including disaster relief law. This bill provides that when assessors notify taxpayers that they're potentially eligible to appeal valuation changes resulting from a disaster, they can appeal to the assessment appeals board in addition to the county board of equalization. III. Cross reference . Current law allows for changes in ownership without reassessment, including when a parent or child transfers property to a disabled ward or a child by will, devise, or inheritance. Revenue and Taxation Code Section 62, which allows the transfers, relies on a definition for "disability" in subdivision (e) of Section 12304 of the Health and Safety Code, but in 1991, the Legislature re-lettered the definition to subdivision (d) of that section. This bill corrects the cross-reference. IV. Delete superfluous term . The Public Resources Code uses the term "nonprofit organization" when it allows groups to operate state parks on behalf of the state, but the cross-referenced Revenue and Taxation Code currently uses both "nonprofit corporation" and "nonprofit organization" when exempting these groups from the possessory interest tax. Because nonprofit organizations need not incorporate to qualify under the Public Resources Code, the bill deletes "nonprofit corporation" from the Revenue and Taxation Code section. Comments This bill is this year's omnibus property tax law cleanup bill, and makes four technical, consensus changes intended to improve tax administration for taxpayers, assessors, and the BOE. By combining four changes into one bill, there's no need for individual legislative bills for each change. This bill is a SB 1464 Page 3 consensus project should anyone object to any provision of the bill, it's removed. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No According to the Senate Governance and Finance Committee, the BOE states that this bill has no impact on property tax revenues. SUPPORT : (Verified 4/29/14) State Board of Equalization (source) AB:d 4/30/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****