Amended in Assembly May 4, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 571


Introduced by Assembly Member Brown

February 24, 2015


An act to amend Sectionsbegin delete 69.5, 463,end deletebegin insert 463end insert and 483 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 571, as amended, Brown. begin deleteProperty taxation.end deletebegin insert Property taxation: property statement: change in ownership statement: penalty.end insert

begin delete

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.

end delete
begin delete

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.

end delete

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.

begin delete

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.

end delete
begin delete

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.

end delete
begin delete

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.

end delete
begin delete

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.

end delete
begin delete

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.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteyes end deletebegin insertnoend insert. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

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

begin delete
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 other law, pursuant to
4subdivision (a) of Section 2 of Article XIII A of the California
5Constitution, any person over the age of 55 years, any severely
6and permanently disabled person, or any person with a severely
7and permanently disabled child, who resides in property that is
8eligible for the homeowners’ exemption under subdivision (k) of
9Section 3 of Article XIII of the California Constitution and Section
P3    1218 may transfer, subject to the conditions and limitations provided
2in this section, the base year value of that property to any
3replacement dwelling of equal or lesser value that is located within
4the same county and is purchased or newly constructed by that
5person as his or her principal residence within two years of the
6sale by that person of the original property, provided that the base
7year value of the original property shall not be transferred to the
8replacement dwelling until the original property is sold.

9(2) Notwithstanding the limitation in paragraph (1) requiring
10that the original property and the replacement dwelling be located
11in the same county, this limitation shall not apply in any county
12in which the county board of supervisors, after consultation with
13local affected agencies within the boundaries of the county, adopts
14an ordinance making the provisions of paragraph (1) also applicable
15to situations in which replacement dwellings are located in that
16county and the original properties are located in another county
17within this state. The authorization contained in this paragraph
18shall be applicable in a county only if the ordinance adopted by
19the board of supervisors complies with all of the following
20requirements:

21(A) It is adopted only after consultation between the board of
22supervisors and all other local affected agencies within the county’s
23boundaries.

24(B) It requires that all claims for transfers of base year value
25from original property located in another county be granted if the
26claims meet the applicable requirements of both subdivision (a)
27of Section 2 of Article XIII A of the California Constitution and
28this section.

29(C) It requires that all base year valuations of original property
30located in another county and determined by its assessor be
31accepted in connection with the granting of claims for transfers of
32base year value.

33(D) It provides that its provisions are operative for a period of
34not less than five years.

35(E) The ordinance specifies the date on and after which its
36provisions shall be applicable. However, the date specified shall
37not be earlier than November 9, 1988. The specified applicable
38date may be a date earlier than the date the county adopts the
39ordinance.

P4    1(b) In addition to meeting the requirements of subdivision (a),
2any person claiming the property tax relief provided by this section
3shall be eligible for that relief only if the following conditions are
4met:

5(1) The claimant is an owner and a resident of the original
6property either at the time of its sale, or at the time when the
7original property was substantially damaged or destroyed by
8misfortune or calamity, or within two years of the purchase or new
9construction of the replacement dwelling.

10(2) The original property is eligible for the homeowners’
11exemption, as the result of the claimant’s ownership and occupation
12of the property as his or her principal residence, either at the time
13of its sale, or at the time when the original property was
14substantially damaged or destroyed by misfortune or calamity, or
15within two years of the purchase or new construction of the
16replacement dwelling.

17(3) At the time of the sale of the original property, the claimant
18or the claimant’s spouse who resides with the claimant is at least
1955 years of age, is severely and permanently disabled, or has a
20severely and permanently disabled child.

21(4) At the time of claiming the property tax relief provided by
22subdivision (a), the claimant is an owner of a replacement dwelling
23and occupies it as his or her principal place of residence and, as a
24result thereof, the property is currently eligible for the homeowners’
25exemption or would be eligible for the exemption except that the
26property is already receiving the exemption because of an
27exemption claim filed by the previous owner.

28(5) The original property of the claimant is sold by him or her
29within two years of the purchase or new construction of the
30replacement dwelling. For purposes of this paragraph, the purchase
31or new construction of the replacement dwelling includes the
32purchase of that portion of land on which the replacement building,
33structure, or other shelter constituting a place of abode of the
34claimant will be situated and that, pursuant to paragraph (3) of
35subdivision (g), constitutes a part of the replacement dwelling.

36(6) Except as otherwise provided in paragraph (2) of subdivision
37(a), the replacement dwelling, including that portion of land on
38which it is situated that is specified in paragraph (5), is located
39entirely within the same county as the claimant’s original property.

P5    1(7) The claimant has not previously been granted, as a claimant,
2the property tax relief provided by this section, except that this
3paragraph shall not apply to any person who becomes severely
4and permanently disabled subsequent to being granted, as a
5claimant, the property tax relief provided by this section for any
6person over the age of 55 years. In order to prevent duplication of
7claims under this section within this state, county assessors shall
8 report quarterly to the State Board of Equalization that information
9from claims filed in accordance with subdivision (f) and from
10county records as is specified by the board necessary to identify
11fully all claims under this section allowed by assessors and all
12claimants who have thereby received relief. The board may specify
13that the information include all or a part of the names and social
14security numbers of claimants and their spouses and the identity
15and location of the replacement dwelling to which the claim
16applies. The information may be required in the form of data
17processing media or other media and in a format that is compatible
18with the recordkeeping processes of the counties and the auditing
19procedures of the state.

20(c) The property tax relief provided by this section shall be
21available if the original property or the replacement dwelling, or
22both, of the claimant includes, but is not limited to, either of the
23following:

24(1) A unit or lot within a cooperative housing corporation, a
25community apartment project, a condominium project, or a planned
26unit development. If the unit or lot constitutes the original property
27of the claimant, the assessor shall transfer to the claimant’s
28replacement dwelling only the base year value of the claimant’s
29unit or lot and his or her share in any common area reserved as an
30appurtenance of that unit or lot. If the unit or lot constitutes the
31replacement dwelling of the claimant, the assessor shall transfer
32the base year value of the claimant’s original property only to the
33unit or lot of the claimant and any share of the claimant in any
34common area reserved as an appurtenance of that unit or lot.

35(2) A manufactured home or a manufactured home and any land
36owned by the claimant on which the manufactured home is situated.
37For purposes of this paragraph, “land owned by the claimant”
38includes a pro rata interest in a resident-owned mobilehome park
39that is assessed pursuant to subdivision (b) of Section 62.1.

P6    1(A) If the manufactured home or the manufactured home and
2the land on which it is situated constitutes the claimant’s original
3property, the assessor shall transfer to the claimant’s replacement
4dwelling either the base year value of the manufactured home or
5the base year value of the manufactured home and the land on
6which it is situated, as appropriate. If the manufactured home
7dwelling that constitutes the original property of the claimant
8includes an interest in a resident-owned mobilehome park, the
9assessor shall transfer to the claimant’s replacement dwelling the
10base year value of the claimant’s manufactured home and his or
11her pro rata portion of the real property of the park. No transfer of
12base year value shall be made by the assessor of that portion of
13land that does not constitute a part of the original property, as
14provided in paragraph (4) of subdivision (g).

15(B) If the manufactured home or the manufactured home and
16the land on which it is situated constitutes the claimant’s
17replacement dwelling, the assessor shall transfer the base year
18value of the claimant’s original property either to the manufactured
19home or the manufactured home and the land on which it is
20situated, as appropriate. If the manufactured home dwelling that
21constitutes the replacement dwelling of the claimant includes an
22interest in a resident-owned mobilehome park, the assessor shall
23transfer the base year value of the claimant’s original property to
24the manufactured home of the claimant and his or her pro rata
25portion of the park. No transfer of base year value shall be made
26by the assessor to that portion of land that does not constitute a
27part of the replacement dwelling, as provided in paragraph (3) of
28subdivision (g).

29This subdivision shall be subject to the limitations specified in
30subdivision (d).

31(d) The property tax relief provided by this section shall be
32available to a claimant who is the coowner of the original property,
33as a joint tenant, a tenant in common, a community property owner,
34or a present beneficiary of a trust subject to the following
35limitations:

36(1) If a single replacement dwelling is purchased or newly
37constructed by all of the coowners and each coowner retains an
38interest in the replacement dwelling, the claimant shall be eligible
39under this section whether or not any or all of the remaining
40coowners would otherwise be eligible claimants.

P7    1(2) If two or more replacement dwellings are separately
2purchased or newly constructed by two or more coowners and
3more than one coowner would otherwise be an eligible claimant,
4only one coowner shall be eligible under this section. These
5coowners shall determine by mutual agreement which one of them
6shall be deemed eligible.

7(3) If two or more replacement dwellings are separately
8purchased or newly constructed by two coowners who held the
9original property as community property, only the coowner who
10has attained the age of 55 years, is severely and permanently
11disabled, or has a severely and permanently disabled child, shall
12be eligible under this section. If both spouses are over 55 years of
13age, they shall determine by mutual agreement which one of them
14is eligible.

15In the case of coowners whose original property is a multiunit
16 dwelling, the limitations imposed by paragraphs (2) and (3) shall
17only apply to coowners who occupied the same dwelling unit
18within the original property at the time specified in paragraph (2)
19of subdivision (b).

20(e) Upon the sale of original property, the assessor shall
21determine a new base year value for that property in accordance
22with subdivision (a) of Section 2 of Article XIII A of the California
23Constitution and Section 110.1, whether or not a replacement
24dwelling is subsequently purchased or newly constructed by the
25former owner or owners of the original property.

26This section shall not apply unless the transfer of the original
27property is a change in ownership that either (1) subjects that
28property to reappraisal at its current fair market value in accordance
29with Section 110.1 or 5803 or (2) results in a base year value
30determined in accordance with this section, Section 69, or Section
3169.3 because the property qualifies under this section, Section 69,
32or Section 69.3 as a replacement dwelling or property.

33(f) (1) A claimant shall not be eligible for the property tax relief
34provided by this section unless the claimant provides to the
35assessor, on a form that shall be designed by the State Board of
36Equalization and that the assessor shall make available upon
37request, the following information:

38(A) The name and social security number of each claimant and
39of any spouse of the claimant who is a record owner of the
40replacement dwelling.

P8    1(B) Proof that the claimant or the claimant’s spouse who resided
2on the original property with the claimant was, at the time of its
3sale, at least 55 years of age, severely and permanently disabled,
4or had a permanently and disabled child. Proof of severe and
5permanent disability shall be considered a certification, signed by
6a licensed physician and surgeon of appropriate specialty, attesting
7to the claimant’s severely and permanently disabled or a child’s
8severely and permanently disabled condition. In the absence of
9available proof that a person is over 55 years of age, the claimant
10shall certify under penalty of perjury that the age requirement is
11met. In the case of a severely and permanently disabled claimant
12or a severely and permanently disabled child either of the following
13shall be submitted:

14(i) A certification, signed by a licensed physician or surgeon of
15appropriate specialty that identifies specific reasons why the
16disability necessitates a move to the replacement dwelling and the
17disability-related requirements, including any locational
18requirements, of a replacement dwelling. The claimant shall
19substantiate that the replacement dwelling meets disability-related
20requirements so identified and that the primary reason for the move
21to the replacement dwelling is to satisfy those requirements. If the
22claimant, or the claimant’s spouse or guardian, so declares under
23penalty of perjury, it shall be rebuttably presumed that the primary
24purpose of the move to the replacement dwelling is to satisfy
25identified disability-related requirements.

26(ii) The claimant’s substantiation that the primary purpose of
27the move to the replacement dwelling is to alleviate financial
28burdens caused by the disability. If the claimant, or the claimant’s
29spouse or guardian, so declares under penalty of perjury, it shall
30be rebuttably presumed that the primary purpose of the move is
31to alleviate the financial burdens caused by the disability.

32(C) The address and, if known, the assessor’s parcel number of
33the original property.

34(D) The date of the claimant’s sale of the original property and
35the date of the claimant’s purchase or new construction of a
36replacement dwelling.

37(E) A statement by the claimant that he or she occupied the
38replacement dwelling as his or her principal place of residence on
39the date of the filing of his or her claim.

P9    1(F) Any claim under this section shall be filed within three years
2of the date the replacement dwelling was purchased or the new
3construction of the replacement dwelling was completed subject
4to subdivision (k) or (m).

5(2) A claim for transfer of base year value under this section
6that is filed after the expiration of the filing period set forth in
7subparagraph (F) of paragraph (1) shall be considered by the
8assessor, subject to all of the following conditions:

9(A) Any base year value transfer granted pursuant to that claim
10shall apply commencing with the lien date of the assessment year
11in which the claim is filed.

12(B) The full cash value of the replacement property in the
13assessment year described in subparagraph (A) shall be the base
14year value of the real property in the assessment year in which the
15base year value was transferred, factored to the assessment year
16described in subparagraph (A) for both of the following:

17(i) Inflation as annually determined in accordance with
18paragraph (1) of subdivision (a) of Section 51.

19(ii) Any subsequent new construction occurring with respect to
20the subject real property that does not qualify for property tax relief
21pursuant to the criteria set forth in subparagraphs (A) and (B) of
22paragraph (4) of subdivision (h).

23(g) For purposes of this section:

24(1) “Person over the age of 55 years” means any person or the
25spouse of any person who has attained the age of 55 years or older
26at the time of the sale of the original property.

27(2) “Base year value of the original property” means its base
28year value, as determined in accordance with Section 110.1, with
29the adjustments permitted by subdivision (b) of Section 2 of Article
30XIII A of the California Constitution and subdivision (f) of Section
31110.1, determined as of the date immediately prior to the date that
32the original property is sold by the claimant, or in the case where
33the original property has been substantially damaged or destroyed
34by misfortune or calamity and the owner does not rebuild on the
35original property, determined as of the date immediately prior to
36the misfortune or calamity.

37If the replacement dwelling is purchased or newly constructed
38after the transfer of the original property, “base year value of the
39original property” also includes any inflation factor adjustments
40permitted by subdivision (f) of Section 110.1 for the period
P10   1subsequent to the sale of the original property. The base year or
2years used to compute the “base year value of the original property”
3shall be deemed to be the base year or years of any property to
4which that base year value is transferred pursuant to this section.

5(3) “Replacement dwelling” means a building, structure, or
6other shelter constituting a place of abode, whether real property
7or personal property, that is owned and occupied by a claimant as
8his or her principal place of residence, and any land owned by the
9claimant on which the building, structure, or other shelter is
10situated. For purposes of this paragraph, land constituting a part
11of a replacement dwelling includes only that area of reasonable
12size that is used as a site for a residence, and “land owned by the
13claimant” includes land for which the claimant either holds a
14leasehold interest described in subdivision (c) of Section 61 or a
15land purchase contract. Each unit of a multiunit dwelling shall be
16considered a separate replacement dwelling. For purposes of this
17paragraph, “area of reasonable size that is used as a site for a
18residence” includes all land if any nonresidential uses of the
19property are only incidental to the use of the property as a
20residential site. For purposes of this paragraph, “land owned by
21the claimant” includes an ownership interest in a resident-owned
22mobilehome park that is assessed pursuant to subdivision (b) of
23Section 62.1.

24(4) “Original property” means a building, structure, or other
25shelter constituting a place of abode, whether real property or
26personal property, that is owned and occupied by a claimant as his
27or her principal place of residence, and any land owned by the
28claimant on which the building, structure, or other shelter is
29situated. For purposes of this paragraph, land constituting a part
30of the original property includes only that area of reasonable size
31that is used as a site for a residence, and “land owned by the
32claimant” includes land for which the claimant either holds a
33leasehold interest described in subdivision (c) of Section 61 or a
34land purchase contract. Each unit of a multiunit dwelling shall be
35considered a separate original property. For purposes of this
36paragraph, “area of reasonable size that is used as a site for a
37residence” includes all land if any nonresidential uses of the
38property are only incidental to the use of the property as a
39residential site. For purposes of this paragraph, “land owned by
40the claimant” includes an ownership interest in a resident-owned
P11   1mobilehome park that is assessed pursuant to subdivision (b) of
2Section 62.1.

3(5) “Equal or lesser value” means that the amount of the full
4cash value of a replacement dwelling does not exceed one of the
5following:

6(A) One hundred percent of the amount of the full cash value
7of the original property if the replacement dwelling is purchased
8or newly constructed prior to the date of the sale of the original
9property.

10(B) One hundred and five percent of the amount of the full cash
11value of the original property if the replacement dwelling is
12purchased or newly constructed within the first year following the
13date of the sale of the original property.

14(C) One hundred and ten percent of the amount of the full cash
15value of the original property if the replacement dwelling is
16purchased or newly constructed within the second year following
17the date of the sale of the original property.

18For the purposes of this paragraph, except as otherwise provided
19in paragraph (4) of subdivision (h), if the replacement dwelling is,
20in part, purchased and, in part, newly constructed, the date the
21“replacement dwelling is purchased or newly constructed” is the
22date of purchase or the date of completion of construction,
23whichever is later.

24(6) “Full cash value of the replacement dwelling” means its full
25cash value, determined in accordance with Section 110.1, as of
26the date on which it was purchased or new construction was
27completed, and after the purchase or the completion of new
28construction.

29(7) “Full cash value of the original property” means, either:

30(A) Its new base year value, determined in accordance with
31subdivision (e), without the application of subdivision (h) of
32Section 2 of Article XIII A of the California Constitution, plus the
33adjustments permitted by subdivision (b) of Section 2 of Article
34XIII A and subdivision (f) of Section 110.1 for the period from the
35date of its sale by the claimant to the date on which the replacement
36property was purchased or new construction was completed.

37(B) In the case where the original property has been substantially
38damaged or destroyed by misfortune or calamity and the owner
39does not rebuild on the original property, its full cash value, as
40determined in accordance with Section 110, immediately prior to
P12   1its substantial damage or destruction by misfortune or calamity,
2as determined by the county assessor of the county in which the
3property is located, without the application of subdivision (h) of
4Section 2 of Article XIII A of the California Constitution, plus the
5adjustments permitted by subdivision (b) of Section 2 of Article
6XIII A of the California Constitution and subdivision (f) of Section
7110.1, for the period from the date of its sale by the claimant to
8the date on which the replacement property was purchased or new
9construction was completed.

10(8) “Sale” means any change in ownership of the original
11property for consideration.

12(9) “Claimant” means any person claiming the property tax
13relief provided by this section. If a spouse of that person is a record
14owner of the replacement dwelling, the spouse is also a claimant
15for purposes of determining whether in any future claim filed by
16the spouse under this section the condition of eligibility specified
17in paragraph (7) of subdivision (b) has been met.

18(10) “Property that is eligible for the homeowners’ exemption”
19includes property that is the principal place of residence of its
20owner and is entitled to exemption pursuant to Section 205.5.

21(11) “Person” means any individual, but does not include any
22firm, partnership, association, corporation, company, or other legal
23entity or organization of any kind. “Person” includes an individual
24who is the present beneficiary of a trust.

25(12) “Severely and permanently disabled” means any person
26described in subdivision (b) of Section 74.3.

27(13) For the purposes of this section, property is “substantially
28damaged or destroyed by misfortune or calamity” if either the land
29or the improvements sustain physical damage amounting to more
30than 50 percent of either the land’s or the improvement’s full cash
31value immediately prior to the misfortune or calamity. Damage
32includes a diminution in the value of property as a result of
33restricted access to the property where the restricted access was
34caused by the misfortune or calamity and is permanent in nature.

35(h) (1) Upon the timely filing of a claim described in
36subparagraph (F) of paragraph (1) of subdivision (f), the assessor
37shall adjust the new base year value of the replacement dwelling
38in conformity with this section. This adjustment shall be made as
39of the latest of the following dates:

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

P13   1(B) The date the replacement dwelling is purchased.

2(C) The date the new construction of the replacement dwelling
3is completed.

4(2) Any taxes that were levied on the replacement dwelling prior
5to the filing of the claim on the basis of the replacement dwelling’s
6new base year value, and any allowable annual adjustments thereto,
7shall be canceled or refunded to the claimant to the extent that the
8taxes exceed the amount that would be due when determined on
9the basis of the adjusted new base year value.

10(3) Notwithstanding Section 75.10, Chapter 3.5 (commencing
11with Section 75) shall be utilized for purposes of implementing
12this subdivision, including adjustments of the new base year value
13of replacement dwellings acquired prior to the sale of the original
14property.

15(4) In the case where a claim under this section has been timely
16filed and granted, and new construction is performed upon the
17replacement dwelling subsequent to the transfer of base year value,
18the property tax relief provided by this section also shall apply to
19the replacement dwelling, as improved, and thus there shall be no
20reassessment upon completion of the new construction if both of
21the following conditions are met:

22(A) The new construction is completed within two years of the
23date of the sale of the original property and the owner notifies the
24assessor in writing of completion of the new construction within
25six months after completion.

26(B) The fair market value of the new construction on the date
27of completion, plus the full cash value of the replacement dwelling
28on the date of acquisition, is not more than the full cash value of
29the original property as determined pursuant to paragraph (7) of
30subdivision (g) for purposes of granting the original claim.

31(i) Any claimant may rescind a claim for the property tax relief
32provided by this section and shall not be considered to have
33received that relief for purposes of paragraph (7) of subdivision
34(b), and the assessor shall grant the rescission, if a written notice
35of rescission is delivered to the office of the assessor as follows:

36(1) A written notice of rescission signed by the original filing
37claimant or claimants is delivered to the office of the assessor in
38which the original claim was filed.

39(2) (A) Except as otherwise provided in this paragraph, the
40notice of rescission is delivered to the office of the assessor before
P14   1the date that the county first issues, as a result of relief granted
2under this section, a refund check for property taxes imposed upon
3the replacement dwelling. If granting relief will not result in a
4refund of property taxes, then the notice shall be delivered before
5payment is first made of any property taxes, or any portion thereof,
6imposed upon the replacement dwelling consistent with relief
7granted under this section. If payment of the taxes is not made,
8then notice shall be delivered before the first date that those
9property taxes, or any portion thereof, imposed upon the
10replacement dwelling, consistent with relief granted under this
11section, are delinquent.

12(B) Notwithstanding any other provision in this division, any
13time the notice of rescission is delivered to the office of the assessor
14within six years after relief was granted, provided that the
15replacement property has been vacated as the claimant’s principal
16place of residence within 90 days after the original claim was filed,
17regardless of whether the property continues to receive the
18homeowners’ exemption. If the rescission increases the base year
19value of a property, or the homeowners’ exemption has been
20incorrectly allowed, appropriate escape assessments or
21supplemental assessments, including interest as provided in Section
22506, shall be imposed. The limitations periods for any escape
23assessments or supplemental assessments shall not commence until
24July 1 of the assessment year in which the notice of rescission is
25delivered to the office of the assessor.

26(3) The notice is accompanied by the payment of a fee as the
27assessor may require, provided that the fee shall not exceed an
28amount reasonably related to the estimated cost of processing a
29rescission claim, including both direct costs and developmental
30and indirect costs, such as costs for overhead, personnel, supplies,
31materials, office space, and computers.

32(j) (1) With respect to the transfer of base year value of original
33properties to replacement dwellings located in the same county,
34this section, except as provided in paragraph (3) or (4), shall apply
35to any replacement dwelling that is purchased or newly constructed
36on or after November 6, 1986.

37(2) With respect to the transfer of base year value of original
38properties to replacement dwellings located in different counties,
39except as provided in paragraph (4), this section shall apply to any
40replacement dwelling that is purchased or newly constructed on
P15   1or after the date specified in accordance with subparagraph (E) of
2paragraph (2) of subdivision (a) in the ordinance of the county in
3which the replacement dwelling is located, but shall not apply to
4any replacement dwelling which was purchased or newly
5constructed before November 9, 1988.

6(3) With respect to the transfer of base year value by a severely
7and permanently disabled person, this section shall apply only to
8replacement dwellings that are purchased or newly constructed on
9or after June 6, 1990.

10(4) The amendments made to subdivision (e) by the act adding
11this paragraph shall apply only to replacement dwellings under
12Section 69 that are acquired or newly constructed on or after
13October 20, 1991, and shall apply commencing with the 1991-92
14fiscal year.

15(k) (1) In the case in which a county adopts an ordinance
16pursuant to paragraph (2) of subdivision (a) that establishes an
17applicable date which is more than three years prior to the date of
18adoption of the ordinance, those potential claimants who purchased
19or constructed replacement dwellings more than three years prior
20to the date of adoption of the ordinance and who would, therefore,
21be precluded from filing a timely claim, shall be deemed to have
22timely filed a claim if the claim is filed within three years after the
23date that the ordinance is adopted. This paragraph may not be
24construed as a waiver of any other requirement of this section.

25(2) In the case in which a county assessor corrects a base year
26value to reflect a pro rata change in ownership of a resident-owned
27mobilehome park that occurred between January 1, 1989, and
28January 1, 2002, pursuant to paragraph (4) of subdivision (b) of
29Section 62.1, those claimants who purchased or constructed
30replacement dwellings more than three years prior to the correction
31and who would, therefore, be precluded from filing a timely claim,
32shall be deemed to have timely filed a claim if the claim is filed
33within three years of the date of notice of the correction of the base
34year value to reflect the pro rata change in ownership. This
35paragraph may not be construed as a waiver of any other
36requirement of this section.

37(3) This subdivision does not apply to a claimant who has
38transferred his or her replacement dwelling prior to filing a claim.

39(4) The property tax relief provided by this section, but filed
40under this subdivision, shall apply prospectively only, commencing
P16   1with the lien date of the assessment year in which the claim is
2filed. There shall be no refund or cancellation of taxes prior to the
3date that the claim is filed.

4(l) No escape assessment may be levied if a transfer of base
5year value under this section has been erroneously granted by the
6assessor pursuant to an expired ordinance authorizing intercounty
7transfers of base year value.

8(m) (1) The amendments made to subdivisions (b) and (g) of
9this section by Chapter 613 of the Statutes of 2001 shall apply:

10(A) With respect to the transfer of base year value of original
11properties to replacement dwellings located in the same county,
12to any replacement dwelling that is purchased or newly constructed
13on or after November 6, 1986.

14(B) With respect to the transfer of base year value of original
15properties to replacement dwellings located in different counties,
16to any replacement dwelling that is purchased or newly constructed
17on or after the date specified in accordance with subparagraph (E)
18of paragraph (2) of subdivision (a) in the ordinance of the county
19in which the replacement dwelling is located, but not to any
20replacement dwelling that was purchased or newly constructed
21before November 9, 1988.

22(C) With respect to the transfer of base year value by a severely
23and permanently disabled person, to replacement dwellings that
24are purchased or newly constructed on or after June 6, 1990.

25(2) The property tax relief provided by this section in accordance
26with this subdivision shall apply prospectively only commencing
27with the lien date of the assessment year in which the claim is
28filed. There shall be no refund or cancellation of taxes prior to the
29date that the claim is filed.

30(n) A claim filed under this section is not a public document
31and is not subject to public inspection, except that a claim shall be
32available for inspection by the claimant or the claimant’s spouse,
33the claimant’s or the claimant’s spouse’s legal representative, the
34trustee of a trust in which the claimant or the claimant’s spouse is
35a present beneficiary, and the executor or administrator of the
36claimant’s or the claimant’s spouse’s estate.

37(o) The amendments made to this section by the act adding this
38subdivision shall apply commencing with the lien date for the
392012-13 fiscal year.

P17   1(p) With respect to the transfer of base year value by a person
2with a severely and permanently disabled child, this section shall
3only apply to replacement dwellings that are purchased or newly
4constructed on or afer January 1, 2016.

end delete
5

begin deleteSEC. 2.end delete
6begin insertSECTION 1.end insert  

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

8

463.  

(a) If any person who is required by law or is requested
9by the assessor to make an annual property statement fails to file
10an annual property statement within the time limit specified by
11Section 441 or make and subscribe the affidavit respecting his or
12her name and place of residence, a penalty of 10 percent of the
13assessed value of the unreported taxable tangible property of that
14person placed on the current roll shall be added to the assessment
15made on the current roll.

16(b) Notice of any penalty added to the secured roll pursuant to
17this section shall be mailed by the assessor to the assessee at his
18or her address as contained in the official records of the county
19assessor.

20(c) If the assessee establishes to the satisfaction of the county
21board of equalization or the assessment appeals board that the
22failure to file the property statement within the time required by
23 Section 441 was due to reasonable cause and circumstances beyond
24the assessee’s control, and occurred notwithstanding the exercise
25of ordinary care in the absence of willful neglect, it may order the
26penalty abated, provided the assessee has filed with the county
27board written application for abatement of the penalty within the
28time prescribed by law for the filing of applications for assessment
29reductions.

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

33

begin deleteSEC. 3.end delete
34begin insertSEC. 2.end insert  

Section 483 of the Revenue and Taxation Code is
35amended to read:

36

483.  

(a) If the assessee establishes to the satisfaction of the
37county board of equalization or the assessment appeals board that
38the failure to file the change in ownership statement within the
39time required by subdivision (a) of Section 482 was due to
40reasonable cause and not due to willful neglect, and has filed the
P18   1statement with the assessor, the county board of equalization or
2the assessment appeals board may order the penalty abated,
3provided the assessee has filed with the county board of
4equalization or the assessment appeals board a written application
5for abatement of the penalty no later than 60 days after the date
6on which the assessee was notified of the penalty.

7If the penalty is abated it shall be canceled or refunded in the
8same manner as an amount of tax erroneously charged or collected.

9(b) The provisions of subdivision (a) shall not apply in any
10county in which the board of supervisors adopts a resolution to
11that effect. In that county the penalty provided for in subdivision
12(a) of Section 482 shall be abated if the assessee files the change
13of ownership statement with the assessor no later than 60 days
14after the date on which the assessee was notified of the penalty.

15If the penalty is abated it shall be canceled or refunded in the
16same manner as an amount of tax erroneously charged or collected.

17(c) (1) If a person or legal entity establishes to the satisfaction
18of the county board of equalization or the assessment appeals board
19that the failure to file the change in ownership statement within
20the time required by subdivision (b) of Section 482 was due to
21reasonable cause and circumstances beyond the assessee’s control,
22and occurred notwithstanding the exercise of ordinary care in the
23absence of willful neglect, and has filed the statement with the
24State Board of Equalization, the county board of equalization or
25the assessment appeals board may order the penalty be abated,
26provided the person or legal entity has filed with the county board
27of equalization or the assessment appeals board a written
28application for abatement of the penalty no later than 60 days after
29the date on which the person or legal entity was notified of the
30penalty by the assessor.

31(2) If a written request to file a change in ownership statement,
32including a written request to file a complete change in ownership
33statement, is mailed by the State Board of Equalization to a person
34or legal entity as specified in subdivision (b) of Section 482, and
35the assessor determines that the written request was based on
36erroneous information in the possession of the board provided by
37any person or entity, including, but not limited to, the Franchise
38Tax Board, a county assessor, or board staff, the assessor shall
39abate the penalty if the person or legal entity required to comply
40with the written request notifies both the board and the county
P19   1assessor responsible for assessing the penalty of the error no later
2than 60 days after the date on which the person or legal entity is
3notified of the penalty.

4(3) If the penalty is abated, it shall be canceled or refunded in
5the same manner as an amount of tax erroneously charged or
6collected.

begin delete
7

SEC. 4.  

If the Commission on State Mandates determines that
8this act contains costs mandated by the state, reimbursement to
9local agencies and school districts for those costs shall be made
10pursuant to Part 7 (commencing with Section 17500) of Division
114 of Title 2 of the Government Code.

end delete
begin delete
12

SEC. 5.  

Notwithstanding Section 2229 of the Revenue and
13Taxation Code, no appropriation is made by this act and the state
14shall not reimburse any local agency for any property tax revenues
15lost by it pursuant to this act.

end delete


O

    98