Amended in Assembly April 12, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2450

Introduced by Assembly Member Achadjian

February 19, 2016

An act to amend begin delete Section 402.1 end delete begin insert Sections 480 and 5091 end insert of the Revenue and Taxation begin delete Code end delete begin insert Code, end insert relating to property tax.

LEGISLATIVE COUNSEL’S DIGEST

AB 2450, as amended, Achadjian. Property tax.

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Existing property tax law, when there is a change in ownership of real property, a manufactured home, or a floating home that is subject to local property taxation, requires the transferee to file a change in ownership statement, under penalty of perjury, in the county where the real property, manufactured home, or floating home is located. Existing property tax law requires the change in ownership statement to include information relative to the real property, manufactured home, or floating home acquisition transaction, including, but not limited to, a description of the property, the parties to the transaction, the date of acquisition, the amount of the consideration paid for the property, and the terms of the transaction.

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This bill would additionally require the change in ownership statement to include information regarding any enforceable restrictions placed upon the property that the assessor is required to consider, as specified.

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By requiring additional information to be filed under penalty of perjury, thereby expanding the crime of perjury, this bill would impose a state-mandated local program.

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The California Constitution exempts from property taxation property that is owned by the state or, with certain exceptions, by local governments. Existing property tax law establishes a procedure by which a public entity may cancel property taxes on property that it acquires. Under existing law, if a public entity proposes to acquire property for public use that will make the property exempt from taxation, the public entity is required to give notice to the county tax collector and to other public entities whose taxes are not collected by the county tax collector, as provided.

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This bill would additionally require the public entity to give notice to the county assessor.

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By adding to the duties of local government officials with regard to the cancellation of property taxes, this bill would impose a state-mandated local program.

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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.

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This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

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With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

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Existing property tax law requires the county assessor to consider, when valuing real property for property taxation purposes, the effect of any enforceable restrictions to which the use of the land may be subjected. Under existing law these restrictions include, but are not limited to, zoning, recorded contracts with governmental agencies, and various other restrictions imposed by governments.

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This bill would require government agencies to provide copies of the recorded contracts to the assessor as soon as possible after the date of recordation.

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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.

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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.

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

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

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begin insert SECTION 1. end insert   

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begin insert Section 480 of the end insert begin insert Revenue and Taxation Code end insert

begin insert is amended to read: end insert

480.  

(a) Whenever there occurs any change in ownership of
real property, a manufactured home, or a floating home that is
subject to local property taxation and is assessed by the county
assessor, the transferee shall file a signed change in ownership
statement in the county where the real property, manufactured
home, or floating home is located, as provided for in subdivision
(c). In the case of a change in ownership where the transferee is
not locally assessed, no change in ownership statement is required.

(b) The personal representative shall file a change in ownership
statement with the county recorder or assessor in each county in
which the decedent owned real property at the time of death that
is subject to probate proceedings. The statement shall be filed prior
to or at the time the inventory and appraisal is filed with the court
clerk. In all other cases in which an interest in real property is
transferred by reason of death, including a transfer through the
medium of a trust, the change in ownership statement or statements
shall be filed by the trustee (if the property was held in trust) or
the transferee with the county recorder or assessor in each county
in which the decedent owned an interest in real property within
150 days after the date of death.

(c) Except as provided in subdivision (d), the change in
ownership statement as required pursuant to subdivision (a) shall
be declared to be true under penalty of perjury and shall give that
information relative to the real property, manufactured home, or
floating home acquisition transaction as the board shall prescribe
after consultation with the California Assessors’ Association. The
information shall include, but not be limited to, a description of
the property, the parties to the transaction, the date of acquisition,
the amount, if any, of the consideration paid for the property,
whether paid in money or otherwise, begin insert any enforceable restrictions
placed upon the property that the assessor is required to consider
pursuant to Section 402.1, end insert and the terms of the transaction. The
change in ownership statement shall not include any question that
is not germane to the assessment function. The statement shall
contain a notice informing the transferee of the property tax relief
available under Section 69.5. The statement shall contain a notice
that is printed, with the title in at least 12-point boldface type and
the body in at least 8-point boldface type, in the following form:

“Important Notice”

“The law requires any transferee acquiring an interest in real
property, manufactured home, or floating home subject to local
property taxation, and that is assessed by the county assessor, to
file a change in ownership statement with the county recorder or
assessor. The change in ownership statement must be filed at the
time of recording or, if the transfer is not recorded, within 90 days
of the date of the change in ownership, except that where the
change in ownership has occurred by reason of death the statement
shall be filed within 150 days after the date of death or, if the estate
is probated, shall be filed at the time the inventory and appraisal
is filed. The failure to file a change in ownership statement within
90 days from the date a written request is mailed by the assessor
results in a penalty of either: (1) one hundred dollars ($100), or
(2) 10 percent of the taxes applicable to the new base year value
reflecting the change in ownership of the real property,
manufactured home, or floating home, whichever is greater, but
not to exceed five thousand dollars ($5,000) if the property is
eligible for the homeowners’ exemption or twenty thousand dollars
($20,000) if the property is not eligible for the homeowners’
exemption if that failure to file was not willful. This penalty will
be added to the assessment roll and shall be collected like any
other delinquent property taxes, and be subject to the same
penalties for nonpayment.”

(d) The change in ownership statement may be attached to or
accompany the deed or other document evidencing a change in
ownership filed for recording, in which case the notice, declaration
under penalty of perjury, and any information contained in the
deed or other transfer document otherwise required by subdivision
(c) may be omitted.

(e) If the document evidencing a change in ownership is
recorded in the county recorder’s office, then the statement shall
be filed with the recorder at the time of recordation. However, the
recordation of the deed or other document evidencing a change in
ownership shall not be denied or delayed because of the failure to
file a change of ownership statement, or filing of an incomplete
statement, in accordance with this subdivision. If the document
evidencing a change in ownership is not recorded or is recorded
without the concurrent filing of a change in ownership statement,
then the statement shall be filed with the assessor no later than 90
days from the date the change in ownership occurs, except that
where the change in ownership has occurred by reason of death
the statement shall be filed within 150 days after the date of death
or, if the estate is probated, shall be filed at the time the inventory
and appraisal is filed.

(f) Whenever a change in ownership statement is filed with the
county recorder’s office, the recorder shall transmit, as soon as
possible, the original statement or a true copy thereof to the
assessor along with a copy of every recorded document as required
by Section 255.7.

(g) (1) The change in ownership statement may be filed with
the assessor through the United States mail, properly addressed
with the postage prepaid.

(2) A change in ownership statement that is filed with the
assessor, as authorized by paragraph (1), shall be deemed filed on
either the date of the postmark affixed by the United States Postal
Service containing the statement or on the date certified by a bona
fide private courier service on the envelope containing the
statement.

(h) In the case of a corporation, the change in ownership
statement shall be signed either by an officer of the corporation or
an employee or agent who has been designated in writing by the
board of directors to sign those statements on behalf of the
corporation. In the case of a partnership, limited liability company,
or other legal entity, the statement shall be signed by an officer,
partner, manager, or an employee or agent who has been designated
in writing by the partnership, limited liability company, or legal
entity.

(i) No person or entity acting for or on behalf of the parties to
a transfer of real property shall incur liability for the consequences
of assistance rendered to the transferee in preparation of any change
in ownership statement, and no action may be brought or
maintained against any person or entity as a result of that
assistance.

Nothing in this section shall create a duty, either directly or by
implication, that the assistance be rendered by any person or entity
acting for or on behalf of parties to a transfer of real property.

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begin insert SEC. 2. end insert   

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begin insert Section 5091 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

5091.  

(a) If a public entity proposes to acquire property for a
public use that will make the property exempt from taxation, the
public entity shall give notice to the begin insert county assessor, the end insert county
tax begin delete collector end delete begin insert collector, end insert and to any public entities whose taxes are
not collected by the county tax collector but who at the time
exercise the right of assessment and taxation.

(b) The notice shall be given within a reasonable time following
the initial budgeting of funds for the proposed acquisition, and
shall state all of the following:

(1) The approximate extent of the proposed project.

(2) The estimated time of completion of all acquisitions
necessary for the proposed project.

(c) This section creates no rights or liabilities and does not affect
the validity of any property acquisitions by negotiated purchase
or eminent domain.

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begin insert SEC. 3. end insert   

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No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for certain
costs that may be incurred by a local agency or school district
because, in that regard, this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.

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

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SECTION 1.  

Section 402.1 of the Revenue and Taxation Code
is amended to read:

402.1.  

(a) In the assessment of land, the assessor shall consider
the effect upon value of any enforceable restrictions to which the
use of the land may be subjected. These restrictions shall include,
but are not limited to, all of the following:

(1) Zoning.

(2) Recorded contracts with governmental agencies other than
those provided in Sections 422, 422.5, and 422.7. Governmental
agencies shall provide the recorded contracts to the assessor as
soon as possible after the date of recordation.

(3) Permit authority of, and permits issued by, governmental
agencies exercising land use powers concurrently with local
governments, including the California Coastal Commission and
regional coastal commissions, the San Francisco Bay Conservation
and Development Commission, and the Tahoe Regional Planning
Agency.

(4) Development controls of a local government in accordance
with any local coastal program certified pursuant to Division 20
(commencing with Section 30000) of the Public Resources Code.

(5) Development controls of a local government in accordance
with a local protection program, or any component thereof, certified
pursuant to Division 19 (commencing with Section 29000) of the
Public Resources Code.

(6) Environmental constraints applied to the use of land pursuant
to provisions of statutes.

(7) Hazardous waste land use restriction pursuant to Section
25226 of the Health and Safety Code.

(8) (A) A recorded conservation, trail, or scenic easement, as
described in Section 815.1 of the Civil Code, that is granted in
favor of a public agency, or in favor of a nonprofit corporation
organized pursuant to Section 501(c)(3) of the Internal Revenue
Code that has as its primary purpose the preservation, protection,
or enhancement of land in its natural, scenic, historical, agricultural,
forested, or open-space condition or use.

(B) A recorded greenway easement, as described in Section
816.52 of the Civil Code, that is granted in favor of a public
agency, or in favor of a nonprofit corporation organized pursuant
to Section 501(c)(3) of the Internal Revenue Code that has as its
primary purpose the developing and preserving of greenways.

(9) A solar-use easement pursuant to Chapter 6.9 (commencing
with Section 51190) of Part 1 of Division 1 of Title 5 of the
Government Code.

(10) A contract where the following apply:

(A) The contract is with a nonprofit corporation organized
pursuant to Section 501(c)(3) of the Internal Revenue Code that
has received a welfare exemption under Section 214.15 for
properties intended to be sold to low-income families who
participate in a special no-interest loan program.

(B) The contract restricts the use of the land for at least 30 years
to owner-occupied housing available at affordable housing cost in
accordance with Section 50052.5 of the Health and Safety Code.

(C) The contract includes a deed of trust on the property in favor
of the nonprofit corporation to ensure compliance with the terms
of the program, which has no value unless the owner fails to
comply with the covenants and restrictions of the terms of the
home sale.

(D) The local housing authority or an equivalent agency, or, if
none exists, the city attorney or county counsel, has made a finding
that the long-term deed restrictions in the contract serve a public
purpose.

(E) The contract is recorded and provided to the assessor.

(b) There is a rebuttable presumption that restrictions will not
be removed or substantially modified in the predictable future and
that they will substantially equate the value of the land to the value
attributable to the legally permissible use or uses.

(c) Grounds for rebutting the presumption may include, but are
not necessarily limited to, the past history of like use restrictions
in the jurisdiction in question and the similarity of sales prices for
restricted and unrestricted land. The possible expiration of a
restriction at a time certain shall not be conclusive evidence of the
future removal or modification of the restriction unless there is no
opportunity or likelihood of the continuation or renewal of the
restriction, or unless a necessary party to the restriction has
indicated an intent to permit its expiration at that time.

(d) In assessing land with respect to which the presumption is
unrebutted, the assessor shall not consider sales of otherwise
comparable land not similarly restricted as to use as indicative of
value of land under restriction, unless the restrictions have a
demonstrably minimal effect upon value.

(e) In assessing land under an enforceable use restriction wherein
the presumption of no predictable removal or substantial
modification of the restriction has been rebutted, but where the
restriction nevertheless retains some future life and has some effect
on present value, the assessor may consider, in addition to all other
legally permissible information, representative sales of comparable
lands that are not under restriction but upon which natural
limitations have substantially the same effect as restrictions.

(f) For the purposes of this section the following definitions
apply:

(1) “Comparable lands” are lands that are similar to the land
being valued in respect to legally permissible uses and physical
attributes.

(2) “Representative sales information” is information from sales
of a sufficient number of comparable lands to give an accurate
indication of the full cash value of the land being valued.

(g) It is hereby declared that the purpose and intent of the
Legislature in enacting this section is to provide for a method of
determining whether a sufficient amount of representative sales
information is available for land under use restriction to ensure
the accurate assessment of that land. It is also hereby declared that
the further purpose and intent of the Legislature in enacting this
section and Section 1630 is to avoid an assessment policy which,
in the absence of special circumstances, considers uses for land
that legally are not available to the owner and not contemplated
by government, and that these sections are necessary to implement
the public policy of encouraging and maintaining effective land
use planning. This statute shall not be construed as requiring the
assessment of any land at a value less than as required by Section
401 or as prohibiting the use of representative comparable sales
information on land under similar restrictions when this information
is available.

SEC. 2.  

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

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