Amended in Senate January 14, 2016

Amended in Senate August 17, 2015

Senate Bill No. 378

Introduced by Senator Beall

February 24, 2015

An act to amend Section 69.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

SB 378, as amended, Beall. Property taxation: base year value transfers.

(1) The California Constitution authorizes the Legislature to provide that a person who is either severely disabled or 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, provided the replacement dwelling is purchased or newly constructed within 2 years of the sale of the original property, subject to certain conditions.

This bill would provide, commencing with the 2016-17 fiscal year, that the base year value of an original property may be transferred 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 property to the base year value of the original property.

(2) Existing law defines “full cash value of the replacement dwelling” for purposes of this transfer of property tax base year value to mean the replacement dwelling’s full cash value, determined in accordance with a specified provision, as of the date on which the replacement dwelling was purchased or new construction was completed.

This bill would provide that full cash value of the replacement dwelling may also mean, in specified circumstances, the begin delete base year value of the replacement dwelling at the time end delete begin insert replacement dwelling’s full case value, determined in accordance with a specified provision, as of the date on which end insert the original property is sold.

(3) By changing the manner in which local assessors assess property for property taxation purposes, 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, 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.

(4) 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.

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.

(5) This bill would take effect immediately as a tax levy, but would become operative only if Senate Constitutional Amendment ___ of the 2015-16 Regular Session is approved by the voters.

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 69.5 of the Revenue and Taxation Code
is amended to read:

69.5.  

(a) (1) Notwithstanding any other provision of law,
pursuant to subdivision (a) of Section 2 of Article XIII A of the
California Constitution, any person over the age of 55 years, or
any severely and permanently disabled person, who resides in
property that is eligible for the homeowners’ exemption under
subdivision (k) of Section 3 of Article XIII of the California
Constitution and Section 218 may transfer, subject to the conditions
and limitations provided in this section, the base year value of that
property in both of the following circumstances:

(A) To any replacement dwelling of equal or lesser value that
is located within the same county and is purchased or newly
constructed by that person as his or her principal residence within
two years of the sale by that person of the original property,
provided that the base year value of the original property shall not
be transferred to the replacement dwelling until the original
property is sold.

(B) To any replacement dwelling of greater value that is located
within the same county and is purchased or newly constructed by
that person as his or her principal place of residence within two
years of the sale by that person of the original property, provided
that the base year value of the original property shall not be
transferred to the replacement dwelling until the original property
is sold. The base year value of the replacement dwelling shall 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.

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

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

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

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

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

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

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

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

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

(3) At the time of the sale of the original property, the claimant
or the claimant’s spouse who resides with the claimant is at least
55 years of age, or is severely and permanently disabled.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(g) For purposes of this section:

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

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

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

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

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

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

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

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

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

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

(6) “Full cash value of the replacement dwelling” means either
of the following:

begin delete

(A) In the case where base year value is transferred from an
original property to a replacement dwelling that is purchased or
newly constructed prior to the date of the sale of the original
property and the base year value of the replacement dwelling has
decreased since the date of purchase of the replacement dwelling,
its full cash value shall be the base year value of the replacement
dwelling at the time the original property is sold.

(B) In the case of any other transfer of base year value from an
original property to a replacement dwelling, its full cash value
shall be determined in accordance with Section 110.1, as of the
date on which it was purchased or new construction was completed,
and after the purchase or the completion of new construction.

end delete begin insert

(A) Its full cash value, determined in accordance with Section
110.1, as of the date on which it was purchased or new construction
was completed, and after the purchase or the completion of new
construction.

end insert begin insert

(B) In the case where the replacement dwelling is purchased
or newly constructed prior to the date of the sale of the original
property and the full cash of the replacement dwelling as
determined in accordance with subparagraph (A) exceeds its full
cash value as determined in accordance with Section 110 as of
the date the original property is sold, its full cash value means its
full cash value as determined in accordance with Section 110 as
of the date the original property is sold.

end insert

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

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

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

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

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

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

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

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

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

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

(A) The date the original property is sold.

(B) The date the replacement dwelling is purchased.

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

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

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

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

begin delete

(A) In the case of a transfer of base year value from an original
property to a replacement dwelling that is of equal or lesser value,
both of the following conditions are met:

end delete begin delete

(i)

end delete

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

begin delete

(ii)

end delete

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

begin delete

(B) In the case of a transfer of base year value from an original
property to a replacement dwelling that is of greater value, the new
construction is completed within two years of the date of sale of
the original property and the owner notifies the assessor in writing
of completion of the new construction within 30 days after
completion.

end delete

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(o) The amendments made to this section by Chapter 351 of the
Statutes of 2011 shall apply commencing with the lien date for the
2012-13 fiscal year.

(p) The amendments made to this section by the act adding this
subdivision shall apply commencing with the lien date for the
2016-17 fiscal year.

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.

SEC. 3.  

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

SEC. 4.  

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
However, the provisions of this act shall become operative only
if Senate Constitutional Amendment ___ of the 2015-16 Regular
Session is approved by the voters and, in that event, shall become
operative on January 1, 2016.