California Legislature—2015–16 Regular Session

Assembly Constitutional Amendment No. 12

Introduced by Assembly Member Mullin

April 18, 2016

Assembly Constitutional Amendment No. 12—A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending subdivision (a) of Section 2 of Article XIII A thereof, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

ACA 12, as introduced, Mullin. Property taxation: base year value transfers.

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. The California Constitution authorizes the Legislature to provide that a severely disabled person and a person over 55 years of age may, subject to certain conditions, transfer the base year value, as defined, of property that is eligible for the homeowners’ property tax exemption to a replacement dwelling that is of equal or lesser value, located within the same county as the property from which the base year value is transferred, and purchased or newly constructed within 2 years of the sale of the original property.

This measure would additionally authorize the Legislature to provide for the transfer of base year value to a replacement dwelling that is purchased or newly constructed on or after the effective date of this measure that is of greater value, and would require the base year value of the replacement dwelling to be calculated by adding the difference between the full cash value of the original property and the full cash value of the replacement dwelling to the base year value of the original property. The measure would also make various technical changes.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

Resolved by the Assembly, the Senate concurring, That the
Legislature of the State of California at its 2015-16 Regular
Session commencing on the first day of December 2014, two-thirds
of the membership of each house concurring, hereby proposes to
the people of the State of California, that the Constitution of the
State be amended as follows:

  

That subdivision (a) of Section 2 of Article XIII A thereof is
amended to read:

  

(a)  begin insert (1) end insert begin insert   end insert The “full cash value” means the county assessor’s
valuation of real property as shown on the 1975-76 tax bill under
“full cash value” or, thereafter, the appraised value of real property
when purchased, newly constructed, or a change in ownership has
occurred after the 1975 assessment. All real property not already
assessed up to the 1975-76 full cash value may be reassessed to
reflect that valuation. For purposes of this section, “newly
constructed” does not include real property that is reconstructed
after a disaster, as declared by the Governor, where the fair market
value of the real property, as reconstructed, is comparable to its
fair market value prior to the disaster. For purposes of this section,
the term “newly constructed” does not include that portion of an
existing structure that consists of the construction or reconstruction
of seismic retrofitting components, as defined by the Legislature.

begin delete

However,

end delete

begin insert (2) end insert begin insert   end insert begin insert However, end insert the Legislature may provide that, under appropriate
circumstances and pursuant to definitions and procedures
established by the Legislature, any person over begin delete the age of end delete 55 years
begin insert of age end insert who resides in property that is eligible for the homeowner’s
exemption under subdivision (k) of Section 3 of Article XIII and
any implementing legislation may transfer the base year value of
the property entitled to exemption, with the adjustments authorized
by subdivision (b), begin delete to end delete begin insert in both of the following circumstances: end insert

begin insert (A) end insert begin insert   end insert begin insert To end insert any replacement dwelling of equal or lesser value located
within the same county and purchased or newly constructed by
that person as his or her principal residence within two years of
the sale of the original property. begin delete For purposes of this section, “any
person over the age of 55 years” includes a married couple one
member of which is over the age of 55 years. For purposes of this
section, “replacement dwelling” means a building, structure, or
other shelter constituting a place of abode, whether real property
or personal property, and any land on which it may be situated.
For purposes of this section, a two-dwelling unit shall be
considered as two separate single-family dwellings. This paragraph
shall apply end delete begin insert This subparagraph applies end insert to any replacement dwelling
that was purchased or newly constructed on or after November 5,
1986.

begin insert

(B) To any replacement dwelling of greater value located within
the same county and purchased or newly constructed by that person
as his or her principal residence within two years of the sale of
the original property, but only with respect to those replacement
dwellings purchased or newly constructed on or after the effective
date of this subparagraph. The base year value of the replacement
dwelling shall be calculated by adding the difference between the
full cash value of the original property and the full cash value of
the replacement dwelling to the base year value of the original
property.

end insert begin delete

In

end delete

begin insert ( end insert begin insert 3) end insert begin insert   end insert begin insert In end insert addition, the Legislature may authorize each county board
of supervisors, after consultation with the local affected agencies
within the county’s boundaries, to adopt an ordinance making the
provisions of this subdivision relating to transfer of base year value
also applicable to situations in which the replacement dwellings
are located in that county and the original properties are located
in another county within this State. For purposes of this paragraph,
“local affected agency” means any city, special district, school
district, or community college district that receives an annual
property tax revenue allocation. This paragraph applies to any
replacement dwelling that was purchased or newly constructed on
or after the date the county adopted the provisions of this
subdivision relating to transfer of base year value, but does not
apply to any replacement dwelling that was purchased or newly
constructed before November 9, 1988.

begin delete

The

end delete

begin insert (4) end insert begin insert   end insert begin insert The end insert Legislature may extend the provisions of this subdivision
relating to the transfer of base year values from original properties
to replacement dwellings of homeowners over begin delete the age of end delete 55 years
begin insert of age end insert to severely disabled homeowners, but only with respect to
those replacement dwellings purchased or newly constructed on
or after begin delete the effective date of this paragraph. end delete begin insert June 6, 1990. end insert

begin insert

(5) For purposes of this section, the following shall apply:

end insert begin insert

(A) “Any person over 55 years of age” includes a married
couple one member of which is over 55 years of age.

end insert begin insert

(B) “Replacement dwelling” means a building, structure, or
other shelter constituting a place of abode, whether real property
or personal property, and any land on which it may be situated.

end insert begin insert

(C) A two-dwelling unit shall be considered as two separate
single-family dwellings.

end insert