BILL NUMBER: AB 2450 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 12, 2016
INTRODUCED BY Assembly Member Achadjian
FEBRUARY 19, 2016
An act to amend Section 402.1 Sections 480
and 5091 of the Revenue and Taxation Code
Code, relating to property tax.
LEGISLATIVE COUNSEL'S DIGEST
AB 2450, as amended, Achadjian. Property tax.
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.
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.
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.
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.
This bill would additionally require the public entity to give
notice to the county assessor.
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.
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 with regard to certain mandates no
reimbursement is required by this act for a specified reason.
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.
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.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 480 of the Revenue
and Taxation Code is amended to read:
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, any enforceable
restrictions placed upon the property that the assessor is required
to consider pursuant to Section 402.1, 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.
SEC. 2. Section 5091 of the Revenue and
Taxation Code is amended to read:
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 county assessor, the
county tax collector collector,
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.
SEC. 3. 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.
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.
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.