SCA 9, as introduced, Beall. Property taxation: base year value transfers.
The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, “full cash value” is defined as the assessor’s valuation of real property as shown on the 1975-76 tax bill under “full cash value” or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. The California Constitution authorizes the Legislature to provide that a severely disabled person and a person over 55 years of age may transfer the base year value, as defined, of property that is eligible for the homeowners’ property tax exemption to a replacement dwelling that is of equal or lesser value located within the same county as the property from which the base year value is transferred and the replacement dwelling is purchased or newly constructed within 2 years of the sale of the original property, subject to certain conditions.
This measure would additionally authorize the Legislature to provide, commencing with the 2016-17 fiscal year, for the transfer of base year value to a replacement dwelling that is of greater value, and would require the base year value of the replacement dwelling to be calculated by adding the difference between the full cash value of the original property and the full cash value of the replacement dwelling to the base year value of the original property.
Vote: 2⁄3. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
P2 1Resolved by the Senate, the Assembly concurring, That the
2Legislature of the State of California at its 2015-16 Regular
3Session commencing on the first day of December 2014, two-thirds
4of the membership of each house concurring, hereby proposes to
5the people of the State of California, that the Constitution of the
6State be amended as follows:
That subdivision (a) of Section 2 of Article XIII A thereof is
8amended to read:
(a) The “full cash value” means the county
10assessor’s valuation of real property as shown on the 1975-76 tax
11bill under “full cash value” or, thereafter, the appraised value of
12real property when purchased, newly constructed, or a change in
13ownership has occurred after the 1975 assessment. All real property
14not already assessed up to the 1975-76 full cash value may be
15reassessed to reflect that valuation. For purposes of this section,
16“newly constructed” does not include real property that is
17reconstructed after a disaster, as declared by the Governor, where
18the fair market value of the real property, as reconstructed, is
19comparable to its fair market value prior to the disaster. Also, the
20term “newly constructed” does not include the portion of
21reconstruction or improvement to a structure, constructed of
22unreinforced masonry bearing wall construction, necessary to
23comply with any local ordinance relating to seismic safety during
24the first 15 years following that reconstruction or improvement.
26the Legislature may provide that, under appropriate
27circumstances and pursuant to definitions and procedures
28established by the Legislature, any person over the age of 55 years
29who resides in property that is eligible for the homeowner’s
30exemption under subdivision (k) of Section 3 of Article XIII and
31any implementing legislation may transfer the base year value of
32the property entitled to exemption, with the adjustments authorized
33by subdivision (b),
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34any replacement dwelling of equal or lesser value located
35within the same county and purchased or newly constructed by
P3 1that person as his or her principal residence within two years of
2the sale of the original property.
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12purposes of this section, “any person over the age of 55
13years” includes a married couple one member of which is over the
14age of 55 years. For purposes of this section, “replacement
15dwelling” means a building, structure, or other shelter constituting
16a place of abode, whether real property or personal property, and
17any land on which it may be situated. For purposes of this section,
18a two-dwelling unit shall be considered as two separate
19single-family dwellings. This paragraph shall apply to any
20replacement dwelling that was purchased or newly constructed on
21or after November 5, 1986.
23addition, the Legislature may authorize each county board
24of supervisors, after consultation with the local affected agencies
25within the county’s boundaries, to adopt an ordinance making the
26provisions of this subdivision relating to transfer of base year value
27also applicable to situations in which the replacement dwellings
28are located in that county and the original properties are located
29in another county within this State. For purposes of this paragraph,
30“local affected agency” means any city, special district, school
31district, or community college district that receives an annual
32property tax revenue allocation. This paragraph shall apply to any
33replacement dwelling that was purchased or newly constructed on
34or after the date the county adopted the provisions of this
35subdivision relating to transfer of base year value, but shall not
36apply to any replacement dwelling that was purchased or newly
37constructed before November 9, 1988.
39Legislature may extend the provisions of this subdivision
40relating to the transfer of base year values from original properties
P4 1to replacement dwellings of homeowners over the age of 55 years
2to severely disabled homeowners, but only with respect to those
3replacement dwellings purchased or newly constructed on or after
4the effective date of this paragraph.