California Legislature—2015–16 Regular Session

Assembly BillNo. 571


Introduced by Assembly Member Brown

February 24, 2015


An act to amend Sections 69.5, 463, and 483 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 571, as introduced, Brown. Property taxation.

The California Constitution and existing property tax law authorize persons over the age of 55 and persons who are severely and permanently disabled, as specified, to transfer the base year value, as defined, of property to replacement property, if certain conditions are met.

This bill would additionally authorize the transfer of the base year value of property to replacement property for persons who have a severely and permanently disabled child. This bill would apply this property tax relief to replacement dwellings that are purchased or newly constructed on or after January 1, 2016.

Existing law authorizes the county board of equalization or the assessment appeals board to order the penalty abated for failure to file a specified property statement or change in ownership statement, if the assessee establishes to the satisfaction of the county board of equalization or the assessment appeals board that the failure to file the property statement or change in ownership statement within the specified time required was due to reasonable cause and not due to willful neglect and the assessee has filed a written application for abatement of the penalty, as provided.

This bill would instead authorize the penalty to be abated if the assessee establishes that the failure to file the property statement or change in ownership statement within the specified time period was due to reasonable cause and circumstances beyond the assessee’s control, and occurred notwithstanding the exercise of ordinary care in the absence of willful neglect.

By imposing new duties upon local county officials with respect to the implementation of the property tax relief described above, 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 69.5 of the Revenue and Taxation Code
2 is amended to read:

3

69.5.  

(a) (1) Notwithstanding any otherbegin delete provision ofend delete law,
4pursuant to subdivision (a) of Section 2 of Article XIII A of the
5California Constitution, any person over the age of 55 years,begin delete orend delete
6 any severely and permanently disabled person,begin insert or any person with
7a severely and permanently disabled child,end insert
who resides in property
8that is eligible for the homeowners’ exemption under subdivision
9(k) of Section 3 of Article XIII of the California Constitution and
10Section 218 may transfer, subject to the conditions and limitations
11 provided in this section, the base year value of that property to any
P3    1replacement dwelling of equal or lesser value that is located within
2the same county and is purchased or newly constructed by that
3person as his or her principal residence within two years of the
4sale by that person of the original property, provided that the base
5year value of the original property shall not be transferred to the
6replacement dwelling until the original property is sold.

7(2) Notwithstanding the limitation in paragraph (1) requiring
8that the original property and the replacement dwelling be located
9in the same county, this limitation shall not apply in any county
10in which the county board of supervisors, after consultation with
11local affected agencies within the boundaries of the county, adopts
12an ordinance making the provisions of paragraph (1) also applicable
13to situations in which replacement dwellings are located in that
14county and the original properties are located in another county
15within this state. The authorization contained in this paragraph
16shall be applicable in a county only if the ordinance adopted by
17the board of supervisors complies with all of the following
18requirements:

19(A) It is adopted only after consultation between the board of
20supervisors and all other local affected agencies within the county’s
21boundaries.

22(B) It requires that all claims for transfers of base year value
23from original property located in another county be granted if the
24claims meet the applicable requirements of both subdivision (a)
25of Section 2 of Article XIII A of the California Constitution and
26this section.

27(C) It requires that all base year valuations of original property
28located in another county and determined by its assessor be
29accepted in connection with the granting of claims for transfers of
30base year value.

31(D) It provides that its provisions are operative for a period of
32not less than five years.

33(E) The ordinance specifies the date on and after which its
34provisions shall be applicable. However, the date specified shall
35not be earlier than November 9, 1988. The specified applicable
36date may be a date earlier than the date the county adopts the
37ordinance.

38(b) In addition to meeting the requirements of subdivision (a),
39any person claiming the property tax relief provided by this section
P4    1shall be eligible for that relief only if the following conditions are
2met:

3(1) The claimant is an owner and a resident of the original
4property either at the time of its sale, or at the time when the
5original property was substantially damaged or destroyed by
6misfortune or calamity, or within two years of the purchase or new
7construction of the replacement dwelling.

8(2) The original property is eligible for the homeowners’
9exemption, as the result of the claimant’s ownership and occupation
10of the property as his or her principal residence, either at the time
11of its sale, or at the time when the original property was
12substantially damaged or destroyed by misfortune or calamity, or
13within two years of the purchase or new construction of the
14replacement dwelling.

15(3) At the time of the sale of the original property, the claimant
16or the claimant’s spouse who resides with the claimant is at least
1755 years of age,begin delete orend delete is severely and permanentlybegin delete disabledend deletebegin insert disabled,
18or has a severely and permanently disabled childend insert
.

19(4) At the time of claiming the property tax relief provided by
20subdivision (a), the claimant is an owner of a replacement dwelling
21and occupies it as his or her principal place of residence and, as a
22result thereof, the property is currently eligible for the homeowners’
23exemption or would be eligible for the exemption except that the
24property is already receiving the exemption because of an
25exemption claim filed by the previous owner.

26(5) The original property of the claimant is sold by him or her
27within two years of the purchase or new construction of the
28replacement dwelling. For purposes of this paragraph, the purchase
29or new construction of the replacement dwelling includes the
30purchase of that portion of land on which the replacement building,
31structure, or other shelter constituting a place of abode of the
32claimant will be situated and that, pursuant to paragraph (3) of
33subdivision (g), constitutes a part of the replacement dwelling.

34(6) Except as otherwise provided in paragraph (2) of subdivision
35(a), the replacement dwelling, including that portion of land on
36which it is situated that is specified in paragraph (5), is located
37entirely within the same county as the claimant’s original property.

38(7) The claimant has not previously been granted, as a claimant,
39the property tax relief provided by this section, except that this
40paragraph shall not apply to any person who becomes severely
P5    1and permanently disabled subsequent to being granted, as a
2claimant, the property tax relief provided by this section for any
3person over the age of 55 years. In order to prevent duplication of
4claims under this section within this state, county assessors shall
5 report quarterly to the State Board of Equalization that information
6from claims filed in accordance with subdivision (f) and from
7county records as is specified by the board necessary to identify
8fully all claims under this section allowed by assessors and all
9claimants who have thereby received relief. The board may specify
10that the information include all or a part of the names and social
11security numbers of claimants and their spouses and the identity
12and location of the replacement dwelling to which the claim
13applies. The information may be required in the form of data
14processing media or other media and in a format that is compatible
15with the recordkeeping processes of the counties and the auditing
16procedures of the state.

17(c) The property tax relief provided by this section shall be
18available if the original property or the replacement dwelling, or
19both, of the claimant includes, but is not limited to, either of the
20following:

21(1) A unit or lot within a cooperative housing corporation, a
22community apartment project, a condominium project, or a planned
23unit development. If the unit or lot constitutes the original property
24of the claimant, the assessor shall transfer to the claimant’s
25replacement dwelling only the base year value of the claimant’s
26unit or lot and his or her share in any common area reserved as an
27appurtenance of that unit or lot. If the unit or lot constitutes the
28replacement dwelling of the claimant, the assessor shall transfer
29the base year value of the claimant’s original property only to the
30unit or lot of the claimant and any share of the claimant in any
31common area reserved as an appurtenance of that unit or lot.

32(2) A manufactured home or a manufactured home and any land
33owned by the claimant on which the manufactured home is situated.
34For purposes of this paragraph, “land owned by the claimant”
35includes a pro rata interest in a resident-owned mobilehome park
36that is assessed pursuant to subdivision (b) of Section 62.1.

37(A) If the manufactured home or the manufactured home and
38the land on which it is situated constitutes the claimant’s original
39property, the assessor shall transfer to the claimant’s replacement
40dwelling either the base year value of the manufactured home or
P6    1the base year value of the manufactured home and the land on
2which it is situated, as appropriate. If the manufactured home
3dwelling that constitutes the original property of the claimant
4includes an interest in a resident-owned mobilehome park, the
5assessor shall transfer to the claimant’s replacement dwelling the
6base year value of the claimant’s manufactured home and his or
7her pro rata portion of the real property of the park. No transfer of
8base year value shall be made by the assessor of that portion of
9land that does not constitute a part of the original property, as
10provided in paragraph (4) of subdivision (g).

11(B) If the manufactured home or the manufactured home and
12the land on which it is situated constitutes the claimant’s
13replacement dwelling, the assessor shall transfer the base year
14value of the claimant’s original property either to the manufactured
15home or the manufactured home and the land on which it is
16situated, as appropriate. If the manufactured home dwelling that
17constitutes the replacement dwelling of the claimant includes an
18interest in a resident-owned mobilehome park, the assessor shall
19transfer the base year value of the claimant’s original property to
20the manufactured home of the claimant and his or her pro rata
21portion of the park. No transfer of base year value shall be made
22by the assessor to that portion of land that does not constitute a
23part of the replacement dwelling, as provided in paragraph (3) of
24subdivision (g).

25This subdivision shall be subject to the limitations specified in
26subdivision (d).

27(d) The property tax relief provided by this section shall be
28available to a claimant who is the coowner of the original property,
29as a joint tenant, a tenant in common, a community property owner,
30or a present beneficiary of a trust subject to the following
31limitations:

32(1) If a single replacement dwelling is purchased or newly
33constructed by all of the coowners and each coowner retains an
34interest in the replacement dwelling, the claimant shall be eligible
35under this section whether or not any or all of the remaining
36coowners would otherwise be eligible claimants.

37(2) If two or more replacement dwellings are separately
38purchased or newly constructed by two or more coowners and
39more than one coowner would otherwise be an eligible claimant,
40only one coowner shall be eligible under this section. These
P7    1coowners shall determine by mutual agreement which one of them
2shall be deemed eligible.

3(3) If two or more replacement dwellings are separately
4purchased or newly constructed by two coowners who held the
5original property as community property, only the coowner who
6has attained the age of 55 years,begin delete orend delete is severely and permanently
7disabled,begin insert or has a severely and permanently disabled child,end insert shall
8be eligible under this section. If both spouses are over 55 years of
9age, they shall determine by mutual agreement which one of them
10is eligible.

11In the case of coowners whose original property is a multiunit
12 dwelling, the limitations imposed by paragraphs (2) and (3) shall
13only apply to coowners who occupied the same dwelling unit
14within the original property at the time specified in paragraph (2)
15of subdivision (b).

16(e) Upon the sale of original property, the assessor shall
17determine a new base year value for that property in accordance
18with subdivision (a) of Section 2 of Article XIII A of the California
19Constitution and Section 110.1, whether or not a replacement
20dwelling is subsequently purchased or newly constructed by the
21former owner or owners of the original property.

22This section shall not apply unless the transfer of the original
23property is a change in ownership that either (1) subjects that
24property to reappraisal at its current fair market value in accordance
25with Section 110.1 or 5803 or (2) results in a base year value
26determined in accordance with this section, Section 69, or Section
2769.3 because the property qualifies under this section, Section 69,
28or Section 69.3 as a replacement dwelling or property.

29(f) (1) A claimant shall not be eligible for the property tax relief
30provided by this section unless the claimant provides to the
31assessor, on a form that shall be designed by the State Board of
32Equalization and that the assessor shall make available upon
33request, the following information:

34(A) The name and social security number of each claimant and
35of any spouse of the claimant who is a record owner of the
36replacement dwelling.

37(B) Proof that the claimant or the claimant’s spouse who resided
38on the original property with the claimant was, at the time of its
39sale, at least 55 years of age,begin delete orend delete severely and permanentlybegin delete disabled.end delete
40begin insert disabled, or had a permanently and disabled child.end insert Proof of severe
P8    1and permanent disability shall be considered a certification, signed
2by a licensed physician and surgeon of appropriate specialty,
3attesting to the claimant’s severely and permanently disabled
4begin delete condition.end deletebegin insert or a child’s severely and permanently disabled
5condition.end insert
In the absence of available proof that a person is over
655 years of age, the claimant shall certify under penalty of perjury
7that the age requirement is met. In the case of a severely and
8permanently disabled claimantbegin insert or a severely and permanently
9disabled childend insert
either of the following shall be submitted:

10(i) A certification, signed by a licensed physician or surgeon of
11appropriate specialty that identifies specific reasons why the
12disability necessitates a move to the replacement dwelling and the
13disability-related requirements, including any locational
14requirements, of a replacement dwelling. The claimant shall
15substantiate that the replacement dwelling meets disability-related
16requirements so identified and that the primary reason for the move
17to the replacement dwelling is to satisfy those requirements. If the
18claimant, or the claimant’s spouse or guardian, so declares under
19penalty of perjury, it shall be rebuttably presumed that the primary
20purpose of the move to the replacement dwelling is to satisfy
21identified disability-related requirements.

22(ii) The claimant’s substantiation that the primary purpose of
23the move to the replacement dwelling is to alleviate financial
24burdens caused by the disability. If the claimant, or the claimant’s
25spouse or guardian, so declares under penalty of perjury, it shall
26be rebuttably presumed that the primary purpose of the move is
27to alleviate the financial burdens caused by the disability.

28(C) The address and, if known, the assessor’s parcel number of
29the original property.

30(D) The date of the claimant’s sale of the original property and
31the date of the claimant’s purchase or new construction of a
32replacement dwelling.

33(E) A statement by the claimant that he or she occupied the
34replacement dwelling as his or her principal place of residence on
35the date of the filing of his or her claim.

36(F) Any claim under this section shall be filed within three years
37of the date the replacement dwelling was purchased or the new
38construction of the replacement dwelling was completed subject
39to subdivision (k) or (m).

P9    1(2) A claim for transfer of base year value under this section
2that is filed after the expiration of the filing period set forth in
3subparagraph (F) of paragraph (1) shall be considered by the
4assessor, subject to all of the following conditions:

5(A) Any base year value transfer granted pursuant to that claim
6shall apply commencing with the lien date of the assessment year
7in which the claim is filed.

8(B) The full cash value of the replacement property in the
9assessment year described in subparagraph (A) shall be the base
10year value of the real property in the assessment year in which the
11base year value was transferred, factored to the assessment year
12described in subparagraph (A) for both of the following:

13(i) Inflation as annually determined in accordance with
14paragraph (1) of subdivision (a) of Section 51.

15(ii) Any subsequent new construction occurring with respect to
16the subject real property that does not qualify for property tax relief
17pursuant to the criteria set forth in subparagraphs (A) and (B) of
18paragraph (4) of subdivision (h).

19(g) For purposes of this section:

20(1) “Person over the age of 55 years” means any person or the
21spouse of any person who has attained the age of 55 years or older
22at the time of the sale of the original property.

23(2) “Base year value of the original property” means its base
24year value, as determined in accordance with Section 110.1, with
25the adjustments permitted by subdivision (b) of Section 2 of Article
26XIII A of the California Constitution and subdivision (f) of Section
27110.1, determined as of the date immediately prior to the date that
28the original property is sold by the claimant, or in the case where
29the original property has been substantially damaged or destroyed
30by misfortune or calamity and the owner does not rebuild on the
31original property, determined as of the date immediately prior to
32the misfortune or calamity.

33If the replacement dwelling is purchased or newly constructed
34after the transfer of the original property, “base year value of the
35original property” also includes any inflation factor adjustments
36permitted by subdivision (f) of Section 110.1 for the period
37subsequent to the sale of the original property. The base year or
38years used to compute the “base year value of the original property”
39shall be deemed to be the base year or years of any property to
40which that base year value is transferred pursuant to this section.

P10   1(3) “Replacement dwelling” means a building, structure, or
2other shelter constituting a place of abode, whether real property
3or personal property, that is owned and occupied by a claimant as
4his or her principal place of residence, and any land owned by the
5claimant on which the building, structure, or other shelter is
6situated. For purposes of this paragraph, land constituting a part
7of a replacement dwelling includes only that area of reasonable
8size that is used as a site for a residence, and “land owned by the
9claimant” includes land for which the claimant either holds a
10leasehold interest described in subdivision (c) of Section 61 or a
11land purchase contract. Each unit of a multiunit dwelling shall be
12considered a separate replacement dwelling. For purposes of this
13paragraph, “area of reasonable size that is used as a site for a
14residence” includes all land if any nonresidential uses of the
15property are only incidental to the use of the property as a
16residential site. For purposes of this paragraph, “land owned by
17the claimant” includes an ownership interest in a resident-owned
18mobilehome park that is assessed pursuant to subdivision (b) of
19Section 62.1.

20(4) “Original property” means a building, structure, or other
21shelter constituting a place of abode, whether real property or
22personal property, that is owned and occupied by a claimant as his
23or her principal place of residence, and any land owned by the
24claimant on which the building, structure, or other shelter is
25situated. For purposes of this paragraph, land constituting a part
26of the original property includes only that area of reasonable size
27that is used as a site for a residence, and “land owned by the
28claimant” includes land for which the claimant either holds a
29leasehold interest described in subdivision (c) of Section 61 or a
30land purchase contract. Each unit of a multiunit dwelling shall be
31considered a separate original property. For purposes of this
32paragraph, “area of reasonable size that is used as a site for a
33residence” includes all land if any nonresidential uses of the
34property are only incidental to the use of the property as a
35residential site. For purposes of this paragraph, “land owned by
36the claimant” includes an ownership interest in a resident-owned
37mobilehome park that is assessed pursuant to subdivision (b) of
38Section 62.1.

P11   1(5) “Equal or lesser value” means that the amount of the full
2cash value of a replacement dwelling does not exceed one of the
3following:

4(A) One hundred percent of the amount of the full cash value
5of the original property if the replacement dwelling is purchased
6or newly constructed prior to the date of the sale of the original
7property.

8(B) One hundred and five percent of the amount of the full cash
9value of the original property if the replacement dwelling is
10purchased or newly constructed within the first year following the
11date of the sale of the original property.

12(C) One hundred and ten percent of the amount of the full cash
13value of the original property if the replacement dwelling is
14purchased or newly constructed within the second year following
15the date of the sale of the original property.

16For the purposes of this paragraph, except as otherwise provided
17in paragraph (4) of subdivision (h), if the replacement dwelling is,
18in part, purchased and, in part, newly constructed, the date the
19“replacement dwelling is purchased or newly constructed” is the
20date of purchase or the date of completion of construction,
21whichever is later.

22(6) “Full cash value of the replacement dwelling” means its full
23cash value, determined in accordance with Section 110.1, as of
24the date on which it was purchased or new construction was
25completed, and after the purchase or the completion of new
26construction.

27(7) “Full cash value of the original property” means, either:

28(A) Its new base year value, determined in accordance with
29subdivision (e), without the application of subdivision (h) of
30Section 2 of Article XIII A of the California Constitution, plus the
31adjustments permitted by subdivision (b) of Section 2 of Article
32XIII A and subdivision (f) of Section 110.1 for the period from the
33date of its sale by the claimant to the date on which the replacement
34property was purchased or new construction was completed.

35(B) In the case where the original property has been substantially
36damaged or destroyed by misfortune or calamity and the owner
37does not rebuild on the original property, its full cash value, as
38determined in accordance with Section 110, immediately prior to
39its substantial damage or destruction by misfortune or calamity,
40as determined by the county assessor of the county in which the
P12   1property is located, without the application of subdivision (h) of
2Section 2 of Article XIII A of the California Constitution, plus the
3adjustments permitted by subdivision (b) of Section 2 of Article
4XIII A of the California Constitution and subdivision (f) of Section
5110.1, for the period from the date of its sale by the claimant to
6the date on which the replacement property was purchased or new
7construction was completed.

8(8) “Sale” means any change in ownership of the original
9property for consideration.

10(9) “Claimant” means any person claiming the property tax
11relief provided by this section. If a spouse of that person is a record
12owner of the replacement dwelling, the spouse is also a claimant
13for purposes of determining whether in any future claim filed by
14the spouse under this section the condition of eligibility specified
15in paragraph (7) of subdivision (b) has been met.

16(10) “Property that is eligible for the homeowners’ exemption”
17includes property that is the principal place of residence of its
18owner and is entitled to exemption pursuant to Section 205.5.

19(11) “Person” means any individual, but does not include any
20firm, partnership, association, corporation, company, or other legal
21entity or organization of any kind. “Person” includes an individual
22who is the present beneficiary of a trust.

23(12) “Severely and permanently disabled” means any person
24described in subdivision (b) of Section 74.3.

25(13) For the purposes of this section, property is “substantially
26damaged or destroyed by misfortune or calamity” if either the land
27or the improvements sustain physical damage amounting to more
28than 50 percent of either the land’s or the improvement’s full cash
29value immediately prior to the misfortune or calamity. Damage
30includes a diminution in the value of property as a result of
31restricted access to the property where the restricted access was
32caused by the misfortune or calamity and is permanent in nature.

33(h) (1) Upon the timely filing of a claim described in
34subparagraph (F) of paragraph (1) of subdivision (f), the assessor
35shall adjust the new base year value of the replacement dwelling
36in conformity with this section. This adjustment shall be made as
37of the latest of the following dates:

38(A) The date the original property is sold.

39(B) The date the replacement dwelling is purchased.

P13   1(C) The date the new construction of the replacement dwelling
2is completed.

3(2) Any taxes that were levied on the replacement dwelling prior
4to the filing of the claim on the basis of the replacement dwelling’s
5new base year value, and any allowable annual adjustments thereto,
6shall be canceled or refunded to the claimant to the extent that the
7taxes exceed the amount that would be due when determined on
8the basis of the adjusted new base year value.

9(3) Notwithstanding Section 75.10, Chapter 3.5 (commencing
10with Section 75) shall be utilized for purposes of implementing
11this subdivision, including adjustments of the new base year value
12of replacement dwellings acquired prior to the sale of the original
13property.

14(4) In the case where a claim under this section has been timely
15filed and granted, and new construction is performed upon the
16replacement dwelling subsequent to the transfer of base year value,
17the property tax relief provided by this section also shall apply to
18the replacement dwelling, as improved, and thus there shall be no
19reassessment upon completion of the new construction if both of
20the following conditions are met:

21(A) The new construction is completed within two years of the
22date of the sale of the original property and the owner notifies the
23assessor in writing of completion of the new construction within
24six months after completion.

25(B) The fair market value of the new construction on the date
26of completion, plus the full cash value of the replacement dwelling
27on the date of acquisition, is not more than the full cash value of
28the original property as determined pursuant to paragraph (7) of
29subdivision (g) for purposes of granting the original claim.

30(i) Any claimant may rescind a claim for the property tax relief
31provided by this section and shall not be considered to have
32received that relief for purposes of paragraph (7) of subdivision
33(b), and the assessor shall grant the rescission, if a written notice
34of rescission is delivered to the office of the assessor as follows:

35(1) A written notice of rescission signed by the original filing
36claimant or claimants is delivered to the office of the assessor in
37which the original claim was filed.

38(2) (A) Except as otherwise provided in this paragraph, the
39notice of rescission is delivered to the office of the assessor before
40the date that the county first issues, as a result of relief granted
P14   1under this section, a refund check for property taxes imposed upon
2the replacement dwelling. If granting relief will not result in a
3refund of property taxes, then the notice shall be delivered before
4payment is first made of any property taxes, or any portion thereof,
5imposed upon the replacement dwelling consistent with relief
6granted under this section. If payment of the taxes is not made,
7then notice shall be delivered before the first date that those
8property taxes, or any portion thereof, imposed upon the
9replacement dwelling, consistent with relief granted under this
10section, are delinquent.

11(B) Notwithstanding any other provision in this division, any
12time the notice of rescission is delivered to the office of the assessor
13within six years after relief was granted, provided that the
14replacement property has been vacated as the claimant’s principal
15place of residence within 90 days after the original claim was filed,
16regardless of whether the property continues to receive the
17homeowners’ exemption. If the rescission increases the base year
18value of a property, or the homeowners’ exemption has been
19incorrectly allowed, appropriate escape assessments or
20supplemental assessments, including interest as provided in Section
21506, shall be imposed. The limitations periods for any escape
22assessments or supplemental assessments shall not commence until
23July 1 of the assessment year in which the notice of rescission is
24delivered to the office of the assessor.

25(3) The notice is accompanied by the payment of a fee as the
26assessor may require, provided that the fee shall not exceed an
27amount reasonably related to the estimated cost of processing a
28rescission claim, including both direct costs and developmental
29and indirect costs, such as costs for overhead, personnel, supplies,
30materials, office space, and computers.

31(j) (1) With respect to the transfer of base year value of original
32properties to replacement dwellings located in the same county,
33this section, except as provided in paragraph (3) or (4), shall apply
34to any replacement dwelling that is purchased or newly constructed
35on or after November 6, 1986.

36(2) With respect to the transfer of base year value of original
37properties to replacement dwellings located in different counties,
38except as provided in paragraph (4), this section shall apply to any
39replacement dwelling that is purchased or newly constructed on
40or after the date specified in accordance with subparagraph (E) of
P15   1paragraph (2) of subdivision (a) in the ordinance of the county in
2which the replacement dwelling is located, but shall not apply to
3any replacement dwelling which was purchased or newly
4constructed before November 9, 1988.

5(3) With respect to the transfer of base year value by a severely
6and permanently disabled person, this section shall apply only to
7replacement dwellings that are purchased or newly constructed on
8or after June 6, 1990.

9(4) The amendments made to subdivision (e) by the act adding
10this paragraph shall apply only to replacement dwellings under
11Section 69 that are acquired or newly constructed on or after
12October 20, 1991, and shall apply commencing with the 1991-92
13fiscal year.

14(k) (1) In the case in which a county adopts an ordinance
15pursuant to paragraph (2) of subdivision (a) that establishes an
16applicable date which is more than three years prior to the date of
17adoption of the ordinance, those potential claimants who purchased
18or constructed replacement dwellings more than three years prior
19to the date of adoption of the ordinance and who would, therefore,
20be precluded from filing a timely claim, shall be deemed to have
21timely filed a claim if the claim is filed within three years after the
22date that the ordinance is adopted. This paragraph may not be
23construed as a waiver of any other requirement of this section.

24(2) In the case in which a county assessor corrects a base year
25value to reflect a pro rata change in ownership of a resident-owned
26mobilehome park that occurred between January 1, 1989, and
27January 1, 2002, pursuant to paragraph (4) of subdivision (b) of
28Section 62.1, those claimants who purchased or constructed
29replacement dwellings more than three years prior to the correction
30and who would, therefore, be precluded from filing a timely claim,
31shall be deemed to have timely filed a claim if the claim is filed
32within three years of the date of notice of the correction of the base
33year value to reflect the pro rata change in ownership. This
34paragraph may not be construed as a waiver of any other
35requirement of this section.

36(3) This subdivision does not apply to a claimant who has
37transferred his or her replacement dwelling prior to filing a claim.

38(4) The property tax relief provided by this section, but filed
39under this subdivision, shall apply prospectively only, commencing
40with the lien date of the assessment year in which the claim is
P16   1filed. There shall be no refund or cancellation of taxes prior to the
2date that the claim is filed.

3(l) No escape assessment may be levied if a transfer of base
4year value under this section has been erroneously granted by the
5assessor pursuant to an expired ordinance authorizing intercounty
6transfers of base year value.

7(m) (1) The amendments made to subdivisions (b) and (g) of
8this section by Chapter 613 of the Statutes of 2001 shall apply:

9(A) With respect to the transfer of base year value of original
10properties to replacement dwellings located in the same county,
11to any replacement dwelling that is purchased or newly constructed
12on or after November 6, 1986.

13(B) With respect to the transfer of base year value of original
14properties to replacement dwellings located in different counties,
15to any replacement dwelling that is purchased or newly constructed
16on or after the date specified in accordance with subparagraph (E)
17of paragraph (2) of subdivision (a) in the ordinance of the county
18in which the replacement dwelling is located, but not to any
19replacement dwelling that was purchased or newly constructed
20before November 9, 1988.

21(C) With respect to the transfer of base year value by a severely
22and permanently disabled person, to replacement dwellings that
23are purchased or newly constructed on or after June 6, 1990.

24(2) The property tax relief provided by this section in accordance
25with this subdivision shall apply prospectively only commencing
26with the lien date of the assessment year in which the claim is
27filed. There shall be no refund or cancellation of taxes prior to the
28date that the claim is filed.

29(n) A claim filed under this section is not a public document
30and is not subject to public inspection, except that a claim shall be
31available for inspection by the claimant or the claimant’s spouse,
32the claimant’s or the claimant’s spouse’s legal representative, the
33trustee of a trust in which the claimant or the claimant’s spouse is
34a present beneficiary, and the executor or administrator of the
35claimant’s or the claimant’s spouse’s estate.

36(o) The amendments made to this section by the act adding this
37subdivision shall apply commencing with the lien date for the
382012-13 fiscal year.

begin insert

39(p) With respect to the transfer of base year value by a person
40with a severely and permanently disabled child, this section shall
P17   1only apply to replacement dwellings that are purchased or newly
2constructed on or afer January 1, 2016.

end insert
3

SEC. 2.  

Section 463 of the Revenue and Taxation Code is
4amended to read:

5

463.  

begin insert(a)end insertbegin insertend insertIf any person who is required by law or is requested
6by the assessor to make an annual property statement fails to file
7an annual property statement within the time limit specified by
8Section 441 or make and subscribe the affidavit respecting his or
9her name and place of residence, a penalty of 10 percent of the
10assessed value of the unreported taxable tangible property of that
11person placed on the current roll shall be added to the assessment
12made on the current roll.

begin delete

13Notice

end delete

begin insert end insert
14begin insert(b)end insertbegin insertend insertbegin insertNoticeend insert of any penalty added to the secured roll pursuant to
15this section shall be mailed by the assessor to the assessee at his
16or her address as contained in the official records of the county
17assessor.

begin delete

18If

end delete

19begin insert(c)end insertbegin insertend insertbegin insertIfend insert the assessee establishes to the satisfaction of the county
20board of equalization or the assessment appeals board that the
21failure to file the property statement within the time required by
22 Section 441 was due to reasonable cause andbegin delete not due toend delete
23begin insert circumstances beyond the assessee’s control, and occurred
24notwithstanding the exercise of ordinary care in the absence ofend insert

25 willful neglect, it may order the penalty abated, provided the
26assessee has filed with the county board written application for
27abatement of the penalty within the time prescribed by law for the
28filing of applications for assessment reductions.

begin delete

29If

end delete

30begin insert(d)end insertbegin insertend insertbegin insertIfend insert the penalty is abated it shall be canceled or refunded in
31the same manner as an amount of tax erroneously charged or
32collected.

33

SEC. 3.  

Section 483 of the Revenue and Taxation Code is
34amended to read:

35

483.  

(a) If the assessee establishes to the satisfaction of the
36county board of equalization or the assessment appeals board that
37the failure to file the change in ownership statement within the
38time required by subdivision (a) of Section 482 was due to
39reasonable cause and not due to willful neglect, and has filed the
40statement with the assessor, the county board of equalization or
P18   1the assessment appeals board may order the penalty abated,
2provided the assessee has filed with the county board of
3equalization or the assessment appeals board a written application
4for abatement of the penalty no later than 60 days after the date
5on which the assessee was notified of the penalty.

6If the penalty is abated it shall be canceled or refunded in the
7same manner as an amount of tax erroneously charged or collected.

8(b) The provisions of subdivision (a) shall not apply in any
9county in which the board of supervisors adopts a resolution to
10that effect. In that county the penalty provided for in subdivision
11(a) of Section 482 shall be abated if the assessee files the change
12of ownership statement with the assessor no later than 60 days
13after the date on which the assessee was notified of the penalty.

14If the penalty is abated it shall be canceled or refunded in the
15same manner as an amount of tax erroneously charged or collected.

16(c) (1) If a person or legal entity establishes to the satisfaction
17of the county board of equalization or the assessment appeals board
18that the failure to file the change in ownership statement within
19the time required by subdivision (b) of Section 482 was due to
20reasonable cause andbegin delete not due toend deletebegin insert circumstances end insertbegin insertbeyond the
21assessee’s control, and occurred notwithstanding the exercise of
22ordinary care in the absence ofend insert
willful neglect, and has filed the
23statement with the State Board of Equalization, the county board
24of equalization or the assessment appeals board may order the
25penalty be abated, provided the person or legal entity has filed
26with the county board of equalization or the assessment appeals
27board a written application for abatement of the penalty no later
28than 60 days after the date on which the person or legal entity was
29notified of the penalty by the assessor.

30(2) If a written request to file a change in ownership statement,
31including a written request to file a complete change in ownership
32statement, is mailed by the State Board of Equalization to a person
33or legal entity as specified in subdivision (b) of Section 482, and
34the assessor determines that the written request was based on
35erroneous information in the possession of the board provided by
36any person or entity, including, but not limited to, the Franchise
37Tax Board, a county assessor, or board staff, the assessor shall
38abate the penalty if the person or legal entity required to comply
39with the written request notifies both the board and the county
40assessor responsible for assessing the penalty of the error no later
P19   1than 60 days after the date on which the person or legal entity is
2notified of the penalty.

3(3) If the penalty is abated, it shall be canceled or refunded in
4the same manner as an amount of tax erroneously charged or
5collected.

6

SEC. 4.  

If the Commission on State Mandates determines that
7this act contains costs mandated by the state, reimbursement to
8local agencies and school districts for those costs shall be made
9pursuant to Part 7 (commencing with Section 17500) of Division
104 of Title 2 of the Government Code.

11

SEC. 5.  

Notwithstanding Section 2229 of the Revenue and
12Taxation Code, no appropriation is made by this act and the state
13shall not reimburse any local agency for any property tax revenues
14lost by it pursuant to this act.



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