BILL ANALYSIS Ó
AB 1534
Page 1
Date of Hearing: May 13, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1534 (Committee on Revenue and Taxation) - As Amended April 30,
2015
-----------------------------------------------------------------
|Policy |Revenue and Taxation |Vote:|9 - 0 |
|Committee: | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill prohibits an assessor or any person employed by the
office of an assessor from making any decisions regarding
"change in ownership" issues or property tax exemptions without
holding valid assessment analyst certificates issued by the
Board of Equalization (BOE), but only if the relevant city or
county has adopted a resolution upon recommendation of the
assessor to require a valid assessment analyst certificate.
Specifically, this bill:
1)Requires the BOE to prepare an examination with the assistance
AB 1534
Page 2
and advice of the California Assessors' Association and
provide it for applicants.
2)Requires a certified assessment analyst to complete at least
24 hours of training conducted or approved by the BOE in each
one-year period; requires an advanced assessment analyst to
complete at least 12 hours of training in each one-year
period.
3)Exempts persons holding a valid appraiser's or advanced
appraiser's certificate issued by the BOE from having to also
receive an assessment analyst certificate.
4)Requires the BOE to prescribe an advanced course of study and
prepare an advanced level examination with the assistance and
advice of the California Assessors' Association, and requires
the BOE to issue an advanced assessment analyst certificate
for an applicant who has held a valid assessment analyst
certificate for at least three years and has either
successfully completed an advanced study course or passed an
advanced level examination.
5)Allows the BOE to issue temporary and/or interim certificates
AB 1534
Page 3
in limited circumstances.
6)Prohibits the BOE from imposing any charge upon a county, city
or an applicant for an assessment analyst examination or
certification or training conducted by the BOE.
FISCAL EFFECT:
Estimated GF costs of approximately $175,000 in the first year
and $150,000 each year thereafter to the BOE to establish and
administer the certificate program.
COMMENTS:
1)Purpose. According to the authors, state law does not require
any certification or training for employees of county
assessors who make change in ownership or exemption decisions,
yet their decisions can potentially impact the tax roll by
adding or removing millions of dollars each year. The authors
and supporters, including the California Assessors'
Association, believe change in ownership and exemption
decisions are highly complex and require a thorough
understanding of legal documents as well as a variety of
statutes, regulations, and court decisions. Current law
already requires appraisers to be certified, and this bill
will create similar certification procedures for employees of
assessors making those decisions, ensuring they are educated
and trained.
AB 1534
Page 4
2)Change in Ownership. Since the adoption of Proposition 13 in
1978, real property has generally been taxed on its value at
the time of its acquisition, with increases for inflation
limited to 2% per year. The property is reassessed to its
market value when the ownership of property is changed. While
the requirement to reassess property upon a change in
ownership is contained in the California Constitution, the
phrase "change in ownership" is not defined. There have been
hundreds of court cases relating to interpretation of "change
in ownership" and exemption issues, leading to considerable
legal debate as to its meaning and intended interpretation.
3)Mandatory Certification, If You Want It. This bill is
substantially similar to AB 2756 (Revenue and Taxation
Committee) of 2014, which was vetoed by the Governor. That
bill required all assessor offices to obtain the training and
certification of its employees, resulting in a state mandate.
In his veto message, the Governor made clear that county
assessors should be providing this training without a state
mandate. This bill includes an opt-in provision for county
assessors, requiring counties and cities to first adopt a
resolution upon recommendation of the assessor before
requiring its employees to obtain certifications. As a
result, this bill does not create a state mandate.
Analysis Prepared by:Joel Tashjian / APPR. / (916)
319-2081
AB 1534
Page 5