Amended in Assembly July 15, 2015

Amended in Assembly June 29, 2015

Senate BillNo. 803


Introduced by Committee on Governance and Finance (Senators Hertzberg (Chair), Bates, Beall, Hernandez, Lara, Nguyen, and Pavley)

March 24, 2015


An act to amend Section 7510 of the Government Code, and to amend Sections 63.1, 68, 401.10, 423.3, 480, 482, 2609, and 3726 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 803, as amended, Committee on Governance and Finance. Property taxation.

(1) Existing law requires the state or any local government entity, when entering into a written contract with a private party whereby a possessory interest subject to property taxation may be created, to include, or cause to be included, in that contract a statement that the property interest may be subject to property taxation if created, and that the party in whom the possessory interest is vested may be subject to the payment of property taxes levied on the interest.

Existing law requires a lease of real property that is owned by a state retirement system to provide, for purposes of property taxation, that the full cash value of the possessory interest created by the lease shall be the greater of either the full cash value of the possessory interest or, if the lease covers less than the entire real property, the lessee’s allocable share of the full cash value that would be determined for that real property if it were subject to tax.

This bill would delete those provisions relating to the full cash value of the possessory interest created by the aforementioned lease and would instead specify that the lease be valued in accordance withbegin delete regulations adopted by the State Board of Equalizationend deletebegin insert a specific regulation in effect on January 1, 2015,end insert for the valuation of taxable possessory interests.

(2) 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, among other things, the appraised value of that real property when a change in ownership has occurred. Existing property tax law provides that specified transfers are not deemed a change in ownership for which a claim is filed, as provided.

The California Constitution and existing property tax law exclude from a “change in ownership” real property transfers of a principal residence and the first $1,000,000 of the value of other real property between parents and their children, as defined by the Legislature. For the purposes of these provisions, existing property tax law defines “real property” to include, among other things, an interest in a unit or lot within a cooperative housing corporation, as defined. Existing property tax law requires the parties to a parent-child transfer of real property under these provisions to make specified written certifications under penalty of perjury.

This bill would specify that, for the purposes of the parent-child principal residence exclusion, “real property” also includes a pro rata ownership interest in a mobilehome park and a pro rata interest in a floating home marina, as those terms are defined.

By changing the manner in which local assessors assess property for purposes of the parent-child principal residence exclusion, and by expanding the crime of perjury by requiring that certain information required be verified under oath, this bill would impose a state-mandated local program.

(3) The California Constitution and existing property tax law exclude from a “change in ownership” the acquisition of real property as a replacement for property from which the person has been displaced by eminent domain proceedings, acquisition by a public entity, or judgment of inverse condemnation. Existing property tax law requires the person acquiring replacement property on and after January 1, 1983, to request assessment within 4 years of the date that the property was acquired by these means.

This bill would specify that an above-described request for assessment made following thisbegin delete 4 yearend deletebegin insert 4-yearend insert period applies commencing with the lien date of an assessment year in which the request is made. The bill wouldbegin delete prohibitend deletebegin insert limitend insert the refund or cancellation of taxes prior to the date the request isbegin delete made.end deletebegin insert made to the lien dates for the last 4 fiscal years with appropriate roll corrections, refunds, or cancellations.end insert The bill would also require the assessor, in granting an assessment under these provisions, to adjust the base year value of the replacement property and make adjustments, as specified.

By adding to the duties of county assessors with respect to assessing these replacement properties, this bill would impose a state-mandated local program.

(4) Existing law requires the county assessor to assess all property that is subject to taxation at its full value. Existing law establishes, for any of the 1984-85 to 2015-16 tax years, inclusive, a rebuttable presumption in favor of a full cash value assessment for an intercounty pipeline right-of-way, provided that certain specified valuation standards are met in determining that assessed value. Existing law prohibits the county from imposing any late payment penalty or interest if payment of any taxes due upon the valuation of intercounty pipeline rights-of-way is made within 45 days of demand by the tax collector for payment. Existing law requires taxes not paid within 45 days of demand by the tax collector to become delinquent at that time, and requires delinquent penalty, redemption penalty, or other collection procedures to apply.

This bill would instead require, if the tax remains unpaid at the time set for the declaration of default for delinquent taxes, the tax together with any penalty and costs as may have accrued on the secured roll to be transferred to the unsecured roll. This bill would also extend the application of this rebuttable presumption through the 2020-21 fiscal year.

By imposing new duties upon local tax officials with respect to the collection of unpaid taxes for intercounty pipeline rights-of-way, this bill would impose a state-mandated local program.

(5) Existing law establishes the California Land Conservation Act of 1965, otherwise known as the Williamson Act, and authorizes a city or county to enter into a contract with an owner of land devoted to agricultural use, whereby the owner agrees to continue using the property for that purpose, and the city or county agrees to value the land accordingly for purposes of property taxation, as specified. Existing law authorizes a city or county to allow land subject to a Williamson Act contract to be assessed pursuant to specified formulas consistent with the restrictions on the land.

This bill would modify these provisions to clarify or correct cross-references relating to the valuation of prime agricultural land and land that is devoted to open-space uses of statewide significance.

(6) Existing property tax law requires a transferee of real property or a manufactured home that is locally assessed to file a change in ownership statement, as specified, with the county in which the property or manufactured home is located and declare the information true under penalty of perjury. If a county assessor makes a written request to a transferee to file a change in ownership statement and the transferee fails to do so within specified time periods, existing law imposes a penalty on the transferee equal to the greater of either $100 or 10% of the property taxes due on the property, but not to exceed $5,000, if the property is eligible for the homeowners’ exemption, or $20,000 if the property is not eligible for the homeowner’s exemption, and the failure was not willful.

This bill would extend these provisions to apply to a change of ownership of a floating home, as specified.

By expanding the crime of perjury with respect to the change in ownership statement, this bill would impose a state-mandated local program.

(7) Existing property tax law requires the tax collector to publish a notice on or before the day when taxes are payable including specified information related to the payment of the property tax on the secured roll.

This bill would clarify that the notice should be published on or before November 1 of each year, the day upon which one-half the taxes on real property, and all taxes on personal property, on the secured roll, are due and payable.

(8) Existing property tax law generally authorizes a county tax collector to sell tax-defaulted property 5 years or more, or 3 years or more, as applicable, after that property has become tax defaulted. Existing property tax law provides that a defense based on the alleged invalidity or irregularity of any sale of tax-defaulted property can be maintained only in a proceeding commenced within one year after the date of execution of the tax collector’s deed.

This bill would instead provide that a defense, as described above, can be maintained only in a proceeding commenced within one year after the date of execution of the tax collector’s deed or within one year of the date the board of supervisors determines that a tax deed that was sold should not be rescinded, whichever is later.

(9) 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.

(10) 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.

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

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

P5    1

SECTION 1.  

Section 7510 of the Government Code is amended
2to read:

3

7510.  

(a) (1) Except as provided in subdivision (b), a public
4retirement system, which has invested assets in real property and
5improvements thereon for business or residential purposes for the
6production of income, shall pay annually to the city or county, in
7whose jurisdiction the real property is located and has been
8removed from the secured roll, a fee for general governmental
9services equal to the difference between the amount that would
10have accrued as real property secured taxes and the amount of
11possessory interest unsecured taxes paid for that property. The
12governing bodies of local entities may adopt ordinances and
13regulations authorizing retirement systems to invest assets in real
14property subject to the foregoing requirements.

15(2) This subdivision shall not apply to any retirement system
16which is established by a local governmental entity if that entity
P6    1is presently authorized by statute or ordinance to invest retirement
2assets in real property.

3(3) This subdivision shall not apply to property owned by any
4state public retirement system.

5(b) (1) Whenever a state public retirement system, which has
6invested assets in real property and improvements thereon for
7business or residential purposes for the production of income,
8leases the property, the lease shall provide, pursuant to Section
9107.6 of the Revenue and Taxation Code, that the lessee’s
10possessory interest may be subject to property taxation and that
11the party in whom the possessory interest is vested may be subject
12to the payment of property taxes levied on that interest. The lease
13shall be valued in accordance withbegin delete regulations adopted by the State
14Board of Equalizationend delete
begin insert Section 21 of Title 18 of the California Code
15of Regulations, as that section was in effect on January 1, 2015,end insert

16 for the valuation of taxable possessory interests.

17(2) Except as provided in this subdivision, the property shall be
18assessed and its taxes computed and collected in the same manner
19as privately owned property. The lessee’s possessory interest shall
20be placed on the unsecured roll and the tax on the possessory
21interest shall be subject to the collection procedures for unsecured
22property taxes.

23(3) An investment by a state public retirement system in a legal
24entity that invests assets in real property and improvements thereon
25shall not constitute an investment by the state public retirement
26system of assets in real property and improvements thereon. For
27purposes of this paragraph, “legal entity” includes, but is not
28limited to, partnership, joint venture, corporation, trust, or
29association. When a state public retirement system invests in a
30legal entity, the state public retirement system shall be deemed to
31be a person for the purpose of determining a change in ownership
32under Section 64 of the Revenue and Taxation Code.

33(4) Notwithstanding any other provision of law, fees charged
34pursuant to this section and collected prior to July 1, 1992, shall
35be deemed valid and not refundable under any circumstance.
36Notwithstanding any other provision of law, fees, interest and
37penalties, if any, asserted to be due pursuant to this section that
38were not charged or collected prior to July 1, 1992, shall be deemed
39invalid and not collectable under any circumstance.

P7    1(5) This subdivision shall apply to the assessment, computation,
2and collection of taxes for the fiscal year beginning on July 1,
31992, and each fiscal year thereafter. For the 1992-93 and 1993-94
4fiscal years, in the case where a lessee’s possessory interest existed
5for less than the full fiscal year for which the tax was levied, the
6amount of tax shall be prorated in accordance with the number of
7months for which the lessee’s interest existed.

8

SEC. 2.  

Section 63.1 of the Revenue and Taxation Code is
9amended to read:

10

63.1.  

(a) Notwithstanding any other provision of this chapter,
11a change in ownership shall not include the following purchases
12or transfers for which a claim is filed pursuant to this section:

13(1) (A) The purchase or transfer of real property which is the
14principal residence of an eligible transferor in the case of a purchase
15or transfer between parents and their children.

16(B) A purchase or transfer of a principal residence from a foster
17child to the child’s biological parent shall not be excluded under
18subparagraph (A) if the transferor child received that principal
19residence, or interest therein, from a foster parent through a
20purchase or transfer that was excluded under subparagraph (A).

21(2) The purchase or transfer of the first one million dollars
22($1,000,000) of full cash value of all other real property of an
23eligible transferor in the case of a purchase or transfer between
24parents and their children.

25(3) (A) Subject to subparagraph (B), the purchase or transfer
26of real property described in paragraphs (1) and (2) of subdivision
27(a) occurring on or after March 27, 1996, between grandparents
28and their grandchild or grandchildren, if all of the parents of that
29grandchild or those grandchildren, who qualify as the children of
30the grandparents, are deceased as of the date of purchase or transfer.
31Notwithstanding any other provision of law, for the lien date for
32the 2006-07 fiscal year and each fiscal year thereafter, in
33determining whether “all of the parents of that grandchild or those
34grandchildren, who qualify as the children of the grandparents,
35are deceased as of the date of purchase or transfer,” a son-in-law
36or daughter-in-law of the grandparent that is a stepparent to the
37grandchild need not be deceased on the date of the transfer.

38(B) A purchase or transfer of a principal residence shall not be
39excluded pursuant to subparagraph (A) if the transferee grandchild
40or grandchildren also received a principal residence, or interest
P8    1therein, through another purchase or transfer that was excludable
2pursuant to paragraph (1) of subdivision (a). The full cash value
3of any real property, other than a principal residence, that was
4transferred to the grandchild or grandchildren pursuant to a
5purchase or transfer that was excludable pursuant to paragraph (2)
6of subdivision (a) and the full cash value of a principal residence
7that fails to qualify for exclusion as a result of the preceding
8sentence shall be included in applying, for purposes of paragraph
9(2) of subdivision (a), the one million dollar ($1,000,000) full cash
10value limit specified in paragraph (2) of subdivision (a).

11(b) (1) For purposes of paragraph (1) of subdivision (a),
12“principal residence” means a dwelling that is eligible for a
13homeowners’ exemption or a disabled veterans’ exemption as a
14result of the transferor’s ownership and occupation of the dwelling.
15“Principal residence” includes only that portion of the land
16underlying the residence that consists of an area of reasonable size
17that is used as a site for the residence.

18(2) For purposes of paragraph (2) of subdivision (a), the
19one-million-dollar ($1,000,000) exclusion shall apply separately
20to each eligible transferor with respect to all purchases by and
21transfers to eligible transferees on and after November 6, 1986, of
22real property, other than the principal residence, of that eligible
23transferor. The exclusion shall not apply to any property in which
24the eligible transferor’s interest was received through a transfer,
25or transfers, excluded from change in ownership by the provisions
26of either subdivision (f) of Section 62 or subdivision (b) of Section
2765, unless the transferor qualifies as an original transferor under
28subdivision (b) of Section 65. In the case of any purchase or
29transfer subject to this paragraph involving two or more eligible
30transferors, the transferors may elect to combine their separate
31one-million-dollar ($1,000,000) exclusions and, upon making that
32election, the combined amount of their separate exclusions shall
33apply to any property jointly sold or transferred by the electing
34transferors, provided that in no case shall the amount of full cash
35value of real property of any one eligible transferor excluded under
36this election exceed the amount of the transferor’s separate unused
37exclusion on the date of the joint sale or transfer.

38(c) As used in this section:

39(1) “Purchase or transfer between parents and their children”
40means either a transfer from a parent or parents to a child or
P9    1children of the parent or parents or a transfer from a child or
2children to a parent or parents of the child or children. For purposes
3of this section, the date of any transfer between parents and their
4children under a will or intestate succession shall be the date of
5the decedent’s death, if the decedent died on or after November
66, 1986.

7(2) “Purchase or transfer of real property between grandparents
8and their grandchild or grandchildren” means a purchase or transfer
9on or after March 27, 1996, from a grandparent or grandparents
10to a grandchild or grandchildren if all of the parents of that
11grandchild or those grandchildren who qualify as the children of
12the grandparents are deceased as of the date of the transfer. For
13purposes of this section, the date of any transfer between
14grandparents and their grandchildren under a will or by intestate
15succession shall be the date of the decedent’s death.
16Notwithstanding any other provision of law, for the lien date for
17the 2006-07 fiscal year and each fiscal year thereafter, in
18determining whether “all of the parents of that grandchild or those
19grandchildren, who qualify as the children of the grandparents,
20are deceased as of the date of purchase or transfer,” a son-in-law
21or daughter-in-law of the grandparent that is a stepparent to the
22grandchild need not be deceased on the date of the transfer.

23(3) “Children” means any of the following:

24(A) Any child born of the parent or parents, except a child, as
25defined in subparagraph (D), who has been adopted by another
26person or persons.

27(B) Any stepchild of the parent or parents and the spouse of that
28stepchild while the relationship of stepparent and stepchild exists.
29For purposes of this paragraph, the relationship of stepparent and
30stepchild shall be deemed to exist until the marriage on which the
31relationship is based is terminated by divorce, or, if the relationship
32is terminated by death, until the remarriage of the surviving
33stepparent.

34(C) Any son-in-law or daughter-in-law of the parent or parents.
35For the purposes of this paragraph, the relationship of parent and
36son-in-law or daughter-in-law shall be deemed to exist until the
37marriage on which the relationship is based is terminated by
38divorce, or, if the relationship is terminated by death, until the
39remarriage of the surviving son-in-law or daughter-in-law.

P10   1(D) Any child adopted by the parent or parents pursuant to
2statute, other than an individual adopted after reaching 18 years
3of age.

4(E) Any foster child of a state-licensed foster parent, if that child
5was not, because of a legal barrier, adopted by the foster parent or
6foster parents before the child aged out of the foster care system.
7For purposes of this paragraph, the relationship between a foster
8child and foster parent shall be deemed to exist until terminated
9by death. However, for purposes of a transfer that occurs on the
10date of death, the relationship shall be deemed to exist on the date
11of death.

12(4) “Grandchild” or “grandchildren” means any child or children
13of the child or children of the grandparent or grandparents.

14(5) “Full cash value” means full cash value, as defined in Section
152 of Article XIII A of the California Constitution and Section 110.1,
16 with any adjustments authorized by those sections, and the full
17value of any new construction in progress, determined as of the
18date immediately prior to the date of a purchase by or transfer to
19an eligible transferee of real property subject to this section.

20(6) “Eligible transferor” means a grandparent, parent, or child
21of an eligible transferee.

22(7) “Eligible transferee” means a parent, child, or grandchild
23of an eligible transferor.

24(8) “Real property” means real property as defined in Section
25104. Real property does not include any interest in a legal entity.
26For purposes of this section, real property includes any of the
27following:

28(A) An interest in a unit or lot within a cooperative housing
29corporation, as defined in subdivision (i) of Section 61.

30(B) A pro rata ownership interest in a mobilehome park, as
31defined in subdivision (b) of Section 62.1.

32(C) A pro rata ownership in a floating home marina, as defined
33in subdivision (c) of Section 62.5.

34(9) “Transfer” includes, and is not limited to, any transfer of
35the present beneficial ownership of property from an eligible
36transferor to an eligible transferee through the medium of an inter
37vivos or testamentary trust.

38(10) “Social security number” also includes a taxpayer
39identification number issued by the Internal Revenue Service in
P11   1the case in which the taxpayer is a foreign national who cannot
2obtain a social security number.

3(d) (1) The exclusions provided for in subdivision (a) shall not
4be allowed unless the eligible transferee, the transferee’s legal
5representative, the trustee of the transferee’s trust, or the executor
6or administrator of the transferee’s estate files a claim with the
7assessor for the exclusion sought and furnishes to the assessor each
8of the following:

9(A) A written certification by the transferee, the transferee’s
10legal representative, the trustee of the transferee’s trust, or the
11executor or administrator of the transferee’s estate, signed and
12made under penalty of perjury that the transferee is a parent, child,
13or grandchild of the transferor and that the transferor is his or her
14parent, child, or grandparent. In the case of a
15grandparent-grandchild transfer, the written certification shall also
16include a certification that all the parents of the grandchild or
17grandchildren who qualify as children of the grandparents were
18deceased as of the date of the purchase or transfer and that the
19grandchild or grandchildren did or did not receive a principal
20residence excludable under paragraph (1) of subdivision (a) from
21the deceased parents, and that the grandchild or grandchildren did
22or did not receive real property other than a principal residence
23 excludable under paragraph (2) of subdivision (a) from the
24deceased parents. The claimant shall provide legal substantiation
25of any matter certified pursuant to this subparagraph at the request
26of the county assessor.

27(B) A written certification by the transferor, the transferor’s
28legal representative, the trustee of the transferor’s trust, or the
29executor or administrator of the transferor’s estate, signed and
30made under penalty of perjury that the transferor is a grandparent,
31parent, or child of the transferee and that the transferor is seeking
32the exclusion under this section and will not file a claim to transfer
33the base year value of the property under Section 69.5.

34(C) A written certification shall also include either or both of
35the following:

36(i) If the purchase or transfer of real property includes the
37 purchase or transfer of residential real property, a certification that
38the residential real property is or is not the transferor’s principal
39residence.

P12   1(ii) If the purchase or transfer of real property includes the
2purchase or transfer of real property other than the transferor’s
3principal residence, a certification that other real property of the
4transferor that is subject to this section has or has not been
5previously sold or transferred to an eligible transferee, the total
6amount of full cash value, as defined in subdivision (c), of any
7real property subject to this section that has been previously sold
8or transferred by that transferor to eligible transferees, the location
9of that real property, the social security number of each eligible
10transferor, and the names of the eligible transferees of that property.

11(D) If there are multiple transferees, the certification and
12 signature may be made by any one of the transferees, if both of
13the following conditions are met:

14(i) The transferee has actual knowledge that, and the certification
15signed by the transferee states that, all of the transferees are eligible
16transferees within the meaning of this section.

17(ii) The certification is signed by the transferee as a true
18statement made under penalty of perjury.

19(E) In the case of a transfer between a foster parent and foster
20child, the claim filed with the assessor shall include a certified
21copy of the court decision regarding the foster child status of the
22individual and a certified statement from the appropriate county
23agency stating that the foster child was not, because of a legal
24barrier, adopted by the foster parent or foster parents. Upon a
25request by the county assessor, the claimant also shall provide to
26the assessor legal substantiation of any matter certified under this
27subparagraph.

28(2) If the full cash value of the real property purchased by or
29transferred to the transferee exceeds the permissible exclusion of
30the transferor or the combined permissible exclusion of the
31transferors, in the case of a purchase or transfer from two or more
32joint transferors, taking into account any previous purchases by
33or transfers to an eligible transferee from the same transferor or
34transferors, the transferee shall specify in his or her claim the
35amount and the allocation of the exclusion he or she is seeking.
36Within any appraisal unit, as determined in accordance with
37subdivision (d) of Section 51 by the assessor of the county in which
38the real property is located, the exclusion shall be applied only on
39a pro rata basis, however, and shall not be applied to a selected
40portion or portions of the appraisal unit.

P13   1(e) (1) The State Board of Equalization shall design the form
2for claiming eligibility. Except as provided in paragraph (2), any
3claim under this section shall be filed:

4(A) For transfers of real property between parents and their
5children occurring prior to September 30, 1990, within three years
6after the date of the purchase or transfer of real property for which
7the claim is filed.

8(B) For transfers of real property between parents and their
9children occurring on or after September 30, 1990, and for the
10purchase or transfer of real property between grandparents and
11their grandchildren occurring on or after March 27, 1996, within
12three years after the date of the purchase or transfer of real property
13for which the claim is filed, or prior to transfer of the real property
14to a third party, whichever is earlier.

15(C) Notwithstanding subparagraphs (A) and (B), a claim shall
16be deemed to be timely filed if it is filed within six months after
17the date of mailing of a notice of supplemental or escape
18assessment, issued as a result of the purchase or transfer of real
19property for which the claim is filed.

20(2) In the case in which the real property subject to purchase or
21transfer has not been transferred to a third party, a claim for
22exclusion under this section that is filed subsequent to the
23expiration of the filing periods set forth in paragraph (1) shall be
24considered by the assessor, subject to all of the following
25conditions:

26(A) Any exclusion granted pursuant to that claim shall apply
27commencing with the lien date of the assessment year in which
28the claim is filed.

29(B) Under any exclusion granted pursuant to that claim, the
30adjusted full cash value of the subject real property in the
31assessment year described in subparagraph (A) shall be the adjusted
32base year value of the subject real property in the assessment year
33in which the excluded purchase or transfer took place, factored to
34the assessment year described in subparagraph (A) for both of the
35following:

36(i) Inflation as annually determined in accordance with
37paragraph (1) of subdivision (a) of Section 51.

38(ii) Any subsequent new construction occurring with respect to
39the subject real property.

P14   1(3) (A) Unless otherwise expressly provided, the provisions of
2this subdivision shall apply to any purchase or transfer of real
3property that occurred on or after November 6, 1986.

4(B) Paragraph (2) shall apply to purchases or transfers between
5parents and their children that occurred on or after November 6,
61986, and to purchases or transfers between grandparents and their
7grandchildren that occurred on or after March 27, 1996.

8(4) For purposes of this subdivision, a transfer of real property
9to a parent or child of the transferor shall not be considered a
10transfer to a third party.

11(f) The assessor may report quarterly to the State Board of
12Equalization all purchases or transfers, other than purchases or
13transfers involving a principal residence, for which a claim for
14exclusion is made pursuant to subdivision (d). Each report shall
15contain the assessor’s parcel number for each parcel for which the
16exclusion is claimed, the amount of each exclusion claimed, the
17social security number of each eligible transferor, and any other
18information the board may require in order to monitor the
19one-million-dollar ($1,000,000) limitation in paragraph (2) of
20subdivision (a). In recognition of the state and local interests served
21by the action made optional in this subdivision, the Legislature
22encourages the assessor to continue taking the action formerly
23mandated by this subdivision.

24(g) This section shall apply to both voluntary transfers and
25transfers resulting from a court order or judicial decree. Nothing
26in this subdivision shall be construed as conflicting with paragraph
27(1) of subdivision (c) or the general principle that transfers by
28reason of death occur at the time of death.

29(h) (1) Except as provided in paragraph (2), this section shall
30apply to purchases and transfers of real property completed on or
31 after November 6, 1986, and shall not be effective for any change
32in ownership, including a change in ownership arising on the date
33of a decedent’s death, that occurred prior to that date.

34(2) This section shall apply to purchases or transfers of real
35property between grandparents and their grandchildren occurring
36on or after March 27, 1996, and, with respect to purchases or
37transfers of real property between grandparents and their
38grandchildren, shall not be effective for any change in ownership,
39including a change in ownership arising on the date of a decedent’s
40death, that occurred prior to that date.

P15   1(i) A claim filed under this section is not a public document and
2is not subject to public inspection, except that a claim shall be
3available for inspection by the transferee and the transferor or their
4respective spouse, the transferee’s legal representative, the
5transferor’s legal representative, the trustee of the transferee’s
6trust, the trustee of the transferor’s trust, and the executor or
7administrator of the transferee’s or transferor’s estate.

8(j) (1) If the assessor notifies the transferee in writing of
9potential eligibility for exclusion from change in ownership under
10this section, a certified claim for exclusion shall be filed with the
11assessor within 45 days of the date of the notice of potential
12eligibility. If a certified claim for exclusion is not filed within 45
13days, the assessor may send a second notice of potential eligibility
14for exclusion, notifying the transferee that a certified claim for
15exclusion has not been received and that reassessment of the
16property will commence unless a certified claim for exclusion is
17filed within 60 days of the date of the second notice of potential
18eligibility. The second notice of potential eligibility shall indicate
19whether a certified claim for exclusion that is not filed within 60
20days will be subject to a processing fee as provided in paragraph
21(2).

22(2) If a certified claim for exclusion is not filed within 60 days
23of the date of the second notice of potential eligibility and an
24eligible transferee subsequently files a claim and qualifies for the
25exclusion, the assessor may, upon authorization by a county board
26of supervisors, require an eligible transferee to pay a one-time
27processing fee, collected at the time the claim is submitted, and
28reimbursed by the assessor if the claim is ineligible. The fee shall
29be subject to the provisions of Chapter 12.5 (commencing with
30Section 54985) of Part 1 of Division 2 of Title 5 of the Government
31Code and shall not exceed the amount of the actual and reasonable
32costs incurred by the assessor for reassessment work done due to
33failure to file the claim for exclusion or one hundred seventy-five
34dollars ($175), whichever is less.

35(3) The failure to file a certified claim for exclusion within the
36filing periods specified by this subdivision shall not be construed
37to limit any exclusion from being granted pursuant to a claim filed
38within the filing periods specified by subdivision (e).

39

SEC. 3.  

Section 68 of the Revenue and Taxation Code is
40amended to read:

P16   1

68.  

(a) For purposes of Section 2 of Article XIII A of the
2Constitution, the term “change in ownership” shall not include the
3acquisition of real property as a replacement for comparable
4property if the person acquiring the real property has been displaced
5from property in this state by eminent domain proceedings, by
6acquisition by a public entity, or by governmental action which
7has resulted in a judgment of inverse condemnation.

8The adjusted base year value of the property acquired shall be
9the lower of the fair market value of the property acquired or the
10value which is the sum of the following:

11(1) The adjusted base year value of the property from which the
12 person was displaced.

13(2) The amount, if any, by which the full cash value of the
14property acquired exceeds 120 percent of the amount received by
15the person for the property from which the person was displaced.

16The provisions of this section shall apply to eminent domain
17proceedings, acquisitions, or judgments of inverse condemnation
18after March 1, 1975, and shall affect only those assessments of
19that property which occur after June 8, 1982.

20(b) (1) A person acquiring replacement property shall request
21assessment under this section. A request made after four years
22following the date the property was acquired by eminent domain
23or purchase, or the date the judgment of inverse condemnation
24becomes final, shall be subject to subdivision (c).

25(2) A change in the adjusted base year value of the replacement
26property acquired, resulting from the application of the provisions
27of this section, shall be deemed to be effective on the first day of
28the month following the month in which the property is acquired.
29The change in value shall be treated as a change in ownership for
30the purpose of placing supplemental assessments on the
31supplemental roll pursuant to Chapter 3.5 (commencing with
32Section 75). The assessor shall, however, appraise the replacement
33property acquired in accordance with the provisions of this section
34rather than the provisions of Section 75.10. The provisions of
35Chapter 3.5 shall be liberally construed in order to provide the
36benefits of this section and Section 2 of Article XIII A of the
37California Constitution to affected property owners at the earliest
38possible date.

39(c) A request for assessment under this section that is made after
40four years following the date the property was acquired by eminent
P17   1domain or purchase, or the date the judgment of inverse
2condemnation becomes final, shall applybegin delete commencing with the
3lien date of assessment year in which the request is made. There
4shall be no refund or cancellation of taxes prior to the date that the
5request is made.end delete
begin insert to the lien dates for the last four fiscal years with
6appropriate roll corrections, refunds, or cancellations.end insert
Under an
7assessment granted pursuant to that request, the assessor shall
8adjust the base year value of the replacement property acquired in
9accordance with this section and make adjustments for both of the
10following:

11(1) Inflation, as annually determined in accordance with
12paragraph (1) of subdivision (a) of Section 51.

13(2) Any subsequent new construction occurring with respect to
14the subject real property.

15

SEC. 4.  

Section 401.10 of the Revenue and Taxation Code is
16amended to read:

17

401.10.  

(a) Notwithstanding any other law relating to the
18determination of the values upon which property taxes are based,
19values for each tax year from the 1984-85 tax year to the 2020-21
20tax year, inclusive, for intercounty pipeline rights-of-way on
21publicly or privately owned property, including those rights-of-way
22that are the subject of a change in ownership, new construction,
23or any other reappraisable event during the period from March 1,
241975, to June 30, 2021, inclusive, shall be rebuttably presumed to
25be at full cash value for that year, if all of the following conditions
26are met:

27(1) (A) The full cash value is determined to equal a 1975-76
28base year value, annually adjusted for inflation in accordance with
29subdivision (b) of Section 2 of Article XIII A of the California
30Constitution, and the 1975-76 base year value was determined in
31accordance with the following schedule:

32(i) Twenty thousand dollars ($20,000) per mile for a high density
33property.

34(ii) Twelve thousand dollars ($12,000) per mile for a transitional
35density property.

36(iii) Nine thousand dollars ($9,000) per mile for a low density
37property.

38(B) For purposes of this section, the density classifications
39described in subparagraph (A) are defined as follows:

P18   1(i) “High density” means Category 1 (densely urban) as
2established by the State Board of Equalization.

3(ii) “Transitional density” means Category 2 (urban) as
4established by the State Board of Equalization.

5(iii) “Low density” means Category 3 (valley-agricultural),
6Category 4 (grazing), and Category 5 (mountain and desert) as
7established by the State Board of Equalization.

8(2) The full cash value is determined utilizing the same property
9density classifications that were assigned to the property by the
10State Board of Equalization for the 1984-85 tax year or, if density
11classifications were not so assigned to the property for the 1984-85
12tax year, the density classifications that were first assigned to the
13property by the board for a subsequent tax year.

14(3) (A) If a taxpayer owns multiple pipelines in the same
15right-of-way, an additional 50 percent of the value attributed to
16the right-of-way for the presence of the first pipeline, as determined
17under paragraphs (1) and (2), shall be added for the presence of
18each additional pipeline up to a maximum of two additional
19pipelines. For any particular taxpayer, the total valuation for a
20multiple pipeline right-of-way shall not exceed 200 percent of the
21value determined for the right-of-way of the first pipeline in the
22right-of-way in accordance with paragraphs (1) and (2).

23(B) If the State Board of Equalization has determined that an
24intercounty pipeline, located within a multiple pipeline right-of-way
25previously valued in accordance with subparagraph (A), has been
26abandoned as a result of physical removal or blockage, the assessed
27value of the right-of-way attributable to the last pipeline enrolled
28in accordance with subparagraph (A) shall be reduced by not less
29than 75 percent of that increase in assessed value that resulted from
30the application of subparagraph (A).

31(4) If all pipelines of a taxpayer located within the same pipeline
32right-of-way, previously valued in accordance with this section,
33are determined by the State Board of Equalization to have been
34abandoned as the result of physical removal or blockage, the
35assessed value of that right-of-way to that taxpayer shall be
36determined to be no more than 25 percent of the assessed value
37otherwise determined for the right-of-way for a single pipeline of
38that taxpayer pursuant to paragraphs (1) and (2).

39(b) If the assessor assigns values for any tax year from the
401984-85 tax year to the 2020-21 tax year, inclusive, in accordance
P19   1with the methodology specified in subdivision (a), the taxpayer’s
2right to assert any challenge to the right to assess that property,
3whether in an administrative or judicial proceeding, shall be
4deemed to have been raised and resolved for that tax year and the
5values determined in accordance with that methodology shall be
6rebuttably presumed to be correct. If the assessor assigns values
7for any tax year from the 1984-85 tax year to the 2020-21 tax
8year, inclusive, in accordance with the methodology specified in
9subdivision (a), any pending taxpayer lawsuit that challenges the
10right to assess the property shall be dismissed by the taxpayer with
11prejudice as it applies to intercounty pipeline rights-of-way.

12(c) Notwithstanding any change in ownership, new construction,
13or decline in value occurring after March 1, 1975, if the assessor
14assigns values for rights-of-way for any tax year from the 1984-85
15tax year to the 2020-21 tax year, inclusive, in accordance with the
16methodology specified in subdivision (a), the taxpayer may not
17challenge the right to assess that property and the values determined
18in accordance with that methodology shall be rebuttably presumed
19to be correct for that property for that tax year.

20(d) Notwithstanding any change in ownership, new construction,
21or decline in value occurring after March 1, 1975, if the assessor
22does not assign values for rights-of-way for any tax year from the
231984-85 tax year to the 2020-21 tax year, inclusive, at the 1975-76
24base year values specified in subdivision (a), any assessed value
25that is determined on the basis of valuation standards that differ,
26in whole or in part, from those valuation standards set forth in
27subdivision (a) shall not benefit from any presumption of
28correctness, and the taxpayer may challenge the right to assess that
29property or the values for that property for that tax year. As used
30herein, a challenge to the right to assess shall include any
31assessment appeal, claim for refund, or lawsuit asserting any right,
32remedy, or cause of action relating to or arising from, but not
33limited to, the following or similar contentions:

34(1) That the value of the right-of-way is included in the value
35of the underlying fee or railroad right-of-way.

36(2) That assessment of the value of the right-of-way to the owner
37of the pipeline would result in double assessment.

38(3) That the value of the right-of-way may not be assessed to
39the owner of the pipeline separately from the assessment of the
40value of the underlying fee.

P20   1(e) Notwithstanding any other provision of law, during a
2four-year period commencing on January 1, 1996, the assessor
3may issue an escape assessment in accordance with the specific
4valuation standards set forth in subdivision (a) for the following
5taxpayers and tax years:

6(1) Any intercounty pipeline right-of-way taxpayer who was a
7plaintiff in Southern Pacific Pipe Lines, Inc. v. State Board of
8Equalization (1993) 14 Cal.App.4th 42, for the tax years 1984-85
9to 1996-97, inclusive.

10(2) Any intercounty pipeline right-of-way taxpayer who was
11not a plaintiff in Southern Pacific Pipe Lines, Inc. v. State Board
12of Equalization (1993) 14 Cal.App.4th 42, for the tax years
131989-90 to 1996-97, inclusive.

14(f) Any escape assessment levied under subdivision (e) shall
15not be subject to penalties or interest under the provisions of
16Section 532. If payment of any taxes due under this section is made
17within 45 days of demand by the tax collector for payment, the
18county shall not impose any late payment penalty or interest. Taxes
19not paid within 45 days of demand by the tax collector shall
20become delinquent at that time. If the tax thereon remains unpaid
21at the time set for declaration of default for delinquent taxes, the
22tax together with any penalty and costs as may have accrued
23thereon while on the secured roll shall be transferred to the
24unsecured roll.

25(g) For purposes of this section, “intercounty pipeline
26right-of-way” means, except as otherwise provided in this
27subdivision, any interest in publicly or privately owned real
28property through which or over which an intercounty pipeline is
29placed. However, “intercounty pipeline right-of-way” does not
30include any parcel or facility that the State Board of Equalization
31originally separately assessed using a valuation method other than
32the multiplication of pipeline length within a subject property by
33a unit value determined in accordance with the density category
34of that subject property.

35(h) This section shall remain in effect only until January 1, 2022,
36and, as of that date is repealed, unless a later enacted statute, that
37 is enacted before January 1, 2022, deletes or extends that date.

38

SEC. 5.  

Section 423.3 of the Revenue and Taxation Code is
39amended to read:

P21   1

423.3.  

Any city or county may allow land subject to an
2enforceable restriction under the Williamson Act or a migratory
3waterfowl habitat contract to be assessed in accordance with one
4or more of the following:

5(a) Land specified in paragraph (1) of subdivision (a) of Section
616142 of the Government Code shall be assessed at the value
7determined as provided in Section 423, but not to exceed a
8uniformly applied percentage of its base year value pursuant to
9Section 110.1, adjusted to reflect the percentage change in the cost
10of living not to exceed 2 percent per year. In no event shall that
11percentage be less than 70 percent.

12(b) Prime commercial rangeland shall be assessed at the value
13 determined as provided in Section 423, but not to exceed a
14uniformly applied percentage of its base year value pursuant to
15Section 110.1, adjusted to reflect the percentage change in the cost
16of living not to exceed 2 percent per year. In no event shall that
17percentage be less than 80 percent.

18For purposes of this subdivision, “prime commercial rangeland”
19means rangeland which meets all of the following
20physical-chemical parameters:

21(1) Soil depth of 12 inches or more.

22(2) Soil texture of fine sandy loam to clay.

23(3) Soil permeability of rapid to slow.

24(4) Soil with at least 2.5 inches of available water holding
25capacity in profile.

26(5) A slope of less than 30 percent.

27(6) A climate with 80 or more frost-free days per year.

28(7) Ten inches or more average annual precipitation.

29(8) When managed at potential, the land generally requires less
30than 17 acres to support one animal unit per year.

31Property owners of land specified in this subdivision, shall
32demonstrate that their land falls within the above definition when
33requested by the city or county.

34(c) Land specified in paragraph (2) of subdivision (a) of Section
3516142 of the Government Code shall be assessed at the value
36determined as provided in Section 423, but not to exceed a
37uniformly applied percentage of its base year value pursuant to
38Section 110.1, adjusted to reflect the percentage change in the cost
39of living not to exceed 2 percent per year. In no event shall that
40percentage be less than 90 percent.

P22   1(d) Waterfowl habitat shall be assessed at the value determined
2as provided in Section 423.7 but not to exceed a uniformly applied
3percentage of its base year value pursuant to Section 110.1,
4adjusted to reflect the percentage change in the cost of living not
5to exceed 2 percent per year. In no event shall that percentage be
6less than 90 percent.

7

SEC. 6.  

Section 480 of the Revenue and Taxation Code is
8amended to read:

9

480.  

(a) Whenever there occurs any change in ownership of
10real property, a manufactured home, or a floating home that is
11subject to local property taxation and is assessed by the county
12assessor, the transferee shall file a signed change in ownership
13statement in the county where the real property, manufactured
14home, or floating home is located, as provided for in subdivision
15(c). In the case of a change in ownership where the transferee is
16not locally assessed, no change in ownership statement is required.

17(b) The personal representative shall file a change in ownership
18statement with the county recorder or assessor in each county in
19which the decedent owned real property at the time of death that
20is subject to probate proceedings. The statement shall be filed prior
21to or at the time the inventory and appraisal is filed with the court
22clerk. In all other cases in which an interest in real property is
23transferred by reason of death, including a transfer through the
24medium of a trust, the change in ownership statement or statements
25shall be filed by the trustee (if the property was held in trust) or
26the transferee with the county recorder or assessor in each county
27in which the decedent owned an interest in real property within
28150 days after the date of death.

29(c) Except as provided in subdivision (d), the change in
30ownership statement as required pursuant to subdivision (a) shall
31be declared to be true under penalty of perjury and shall give that
32information relative to the real property, manufactured home, or
33floating home acquisition transaction as the board shall prescribe
34after consultation with the California Assessors’ Association. The
35information shall include, but not be limited to, a description of
36the property, the parties to the transaction, the date of acquisition,
37the amount, if any, of the consideration paid for the property,
38whether paid in money or otherwise, and the terms of the
39transaction. The change in ownership statement shall not include
40any question that is not germane to the assessment function. The
P23   1statement shall contain a notice informing the transferee of the
2property tax relief available under Section 69.5. The statement
3shall contain a notice that is printed, with the title in at least
412-point boldface type and the body in at least 8-point boldface
5type, in the following form:
6

7“Important Notice”


9“The law requires any transferee acquiring an interest in real
10 property, manufactured home, or floating home subject to local
11property taxation, and that is assessed by the county assessor, to
12file a change in ownership statement with the county recorder or
13assessor. The change in ownership statement must be filed at the
14time of recording or, if the transfer is not recorded, within 90 days
15of the date of the change in ownership, except that where the
16change in ownership has occurred by reason of death the statement
17shall be filed within 150 days after the date of death or, if the estate
18is probated, shall be filed at the time the inventory and appraisal
19is filed. The failure to file a change in ownership statement within
2090 days from the date a written request is mailed by the assessor
21results in a penalty of either: (1) one hundred dollars ($100), or
22(2) 10 percent of the taxes applicable to the new base year value
23reflecting the change in ownership of the real property,
24manufactured home, or floating home, whichever is greater, but
25not to exceed five thousand dollars ($5,000) if the property is
26eligible for the homeowners’ exemption or twenty thousand dollars
27($20,000) if the property is not eligible for the homeowners’
28exemption if that failure to file was not willful. This penalty will
29be added to the assessment roll and shall be collected like any
30other delinquent property taxes, and be subject to the same
31penalties for nonpayment.”
32

33(d) The change in ownership statement may be attached to or
34accompany the deed or other document evidencing a change in
35ownership filed for recording, in which case the notice, declaration
36under penalty of perjury, and any information contained in the
37deed or other transfer document otherwise required by subdivision
38(c) may be omitted.

39(e) If the document evidencing a change in ownership is
40recorded in the county recorder’s office, then the statement shall
P24   1be filed with the recorder at the time of recordation. However, the
2recordation of the deed or other document evidencing a change in
3ownership shall not be denied or delayed because of the failure to
4file a change of ownership statement, or filing of an incomplete
5statement, in accordance with this subdivision. If the document
6evidencing a change in ownership is not recorded or is recorded
7without the concurrent filing of a change in ownership statement,
8then the statement shall be filed with the assessor no later than 90
9days from the date the change in ownership occurs, except that
10where the change in ownership has occurred by reason of death
11the statement shall be filed within 150 days after the date of death
12or, if the estate is probated, shall be filed at the time the inventory
13and appraisal is filed.

14(f) Whenever a change in ownership statement is filed with the
15county recorder’s office, the recorder shall transmit, as soon as
16possible, the original statement or a true copy thereof to the
17assessor along with a copy of every recorded document as required
18by Section 255.7.

19(g) (1) The change in ownership statement may be filed with
20the assessor through the United States mail, properly addressed
21with the postage prepaid.

22(2) A change in ownership statement that is filed with the
23assessor, as authorized by paragraph (1), shall be deemed filed on
24either the date of the postmark affixed by the United States Postal
25Service containing the statement or on the date certified by a bona
26fide private courier service on the envelope containing the
27statement.

28(h) In the case of a corporation, the change in ownership
29statement shall be signed either by an officer of the corporation or
30an employee or agent who has been designated in writing by the
31board of directors to sign those statements on behalf of the
32corporation. In the case of a partnership, limited liability company,
33or other legal entity, the statement shall be signed by an officer,
34partner, manager, or an employee or agent who has been designated
35in writing by the partnership, limited liability company, or legal
36entity.

37(i) No person or entity acting for or on behalf of the parties to
38a transfer of real property shall incur liability for the consequences
39of assistance rendered to the transferee in preparation of any change
40in ownership statement, and no action may be brought or
P25   1maintained against any person or entity as a result of that
2assistance.

3Nothing in this section shall create a duty, either directly or by
4implication, that the assistance be rendered by any person or entity
5acting for or on behalf of parties to a transfer of real property.

6

SEC. 7.  

Section 482 of the Revenue and Taxation Code is
7amended to read:

8

482.  

(a) (1) If a person or legal entity required to file a
9statement described in Section 480 fails to do so within 90 days
10from the date a written request is mailed by the assessor, a penalty
11of either: (A) one hundred dollars ($100), or (B) 10 percent of the
12taxes applicable to the new base year value reflecting the change
13in ownership of the real property, manufactured home, or floating
14home, whichever is greater, but not to exceed five thousand dollars
15($5,000) if the property is eligible for the homeowners’ exemption
16or twenty thousand dollars ($20,000) if the property is not eligible
17for the homeowners’ exemption if the failure to file was not willful,
18shall, except as otherwise provided in this section, be added to the
19assessment made on the roll. The penalty shall apply for failure to
20file a complete change in ownership statement notwithstanding
21the fact that the assessor determines that no change in ownership
22has occurred as defined in Chapter 2 (commencing with Section
2360) of Part 0.5. The penalty may also be applied if after a request
24the transferee files an incomplete statement and does not supply
25the missing information upon a second request.

26(2) The assessor shall mail the written request specified in
27paragraph (1) to the mailing address of the transferee as provided
28by subdivision (f).

29(b) If a person or legal entity required to file a statement
30described in Section 480.1 or 480.2 fails to do so within 90 days
31from the earlier of (1) the date of the change in control or the
32change in ownership of the corporation, partnership, limited
33liability company, or other legal entity, or (2) the date of a written
34request by the State Board of Equalization, a penalty of 10 percent
35of the taxes applicable to the new base year value reflecting the
36change in control or change in ownership of the real property
37owned by the corporation, partnership, or legal entity, or 10 percent
38of the current year’s taxes on that property if no change in control
39or change in ownership occurred, shall be added by the county
40assessor to the assessment made on the roll. The penalty shall apply
P26   1for failure to file a complete statement with the board
2notwithstanding the fact that the board determines that no change
3in control or change in ownership has occurred as defined in
4subdivision (c) or (d) of Section 64. The penalty may also be
5applied if after a request the person or legal entity files an
6 incomplete statement and does not supply the missing information
7upon that second request to complete the statement. That penalty
8shall be in lieu of the penalty provisions of subdivision (a).

9(c) The penalty for failure to file a timely statement pursuant to
10Sections 480, 480.1, and 480.2 for any one transfer may be imposed
11only one time, even though the assessor may initiate a request as
12often as he or she deems necessary.

13(d) The penalty shall be added to the roll in the same manner
14as a special assessment and treated, collected, and subject to the
15same penalties for the delinquency as all other taxes on the roll in
16which it is entered.

17(1) When the transfer to be reported under this section is of a
18portion of a property or parcel appearing on the roll during the
19fiscal year in which the 90-day period expires, the current year’s
20taxes shall be prorated so the penalty will be computed on the
21proportion of property which has transferred.

22(2) Any penalty added to the roll pursuant to this section
23between January 1 and June 30 may be entered either on the
24unsecured roll or the roll being prepared. After January 1, the
25penalty may be added to the current roll only with the approval of
26the tax collector.

27(3) If the property is transferred or conveyed to a bona fide
28purchaser for value or becomes subject to a lien of a bona fide
29encumbrancer for value after the transfer of ownership resulting
30in the imposition of the penalty and before the enrollment of the
31penalty, the penalty shall be entered on the unsecured roll in the
32name of the transferee whose failure to file the change in ownership
33statement resulted in the imposition of the penalty.

34(e) When a penalty imposed pursuant to this section is entered
35on the unsecured roll, the tax collector may immediately file a
36certificate authorized by Section 2191.3.

37(f) Notice of any penalty added to either the secured or
38unsecured roll pursuant to this section, which shall identify the
39parcel or parcels for which the penalty is assessed, and the written
40request to file a statement specified in subdivision (a), which shall
P27   1identify the real property, manufactured home, or floating home
2for which the statement is required to be filed, shall be mailed by
3the assessor to the transferee at his or her address contained in any
4recorded instrument or document evidencing a transfer of an
5interest in real property, manufactured home, or floating home or
6the address specified for mailing tax information contained in the
7preliminary change in ownership report. If the transferee has
8subsequently notified the assessor of a change in address for
9mailing tax information, the assessor shall mail the notice of any
10penalty, or the written request to file a statement specified in
11subdivision (a), to this address. If there is no address specified for
12mailing tax information on either the recorded instrument, the
13document evidencing a transfer of an interest in real property,
14manufactured home, or floating home or on the filed preliminary
15change in ownership report, and the transferee has not provided
16an address for purposes of mailing tax information, the assessor
17shall mail the notice of any penalty, or the written request to file
18a statement specified in subdivision (a), to the transferee at any
19address reasonably known to the assessor.

20

SEC. 8.  

Section 2609 of the Revenue and Taxation Code is
21amended to read:

22

2609.  

On or before November 1 of each year, the tax collector
23shall publish a notice specifying:

24(a) The dates when taxes on the secured roll will be due.

25(b) The times when these taxes will be delinquent.

26(c) The penalties and costs for delinquency.

27(d) That all taxes may be paid when the first installment is due.

28(e) The times and places at which payment of taxes may be
29made.

30

SEC. 9.  

Section 3726 of the Revenue and Taxation Code is
31amended to read:

32

3726.  

A defense based on the alleged invalidity or irregularity
33of any proceeding instituted under this chapter can be maintained
34only in a proceeding commenced within one year after the date of
35execution of the tax collector’s deed or within one year of the date
36the board of supervisors determines that a tax deed sold under this
37part should not be rescinded pursuant to Section 3731, whichever
38is later.

39

SEC. 10.  

No reimbursement is required by this act pursuant to
40Section 6 of Article XIII B of the California Constitution for certain
P28   1costs that may be incurred by a local agency or school district
2because, in that regard, this act creates a new crime or infraction,
3eliminates a crime or infraction, or changes the penalty for a crime
4or infraction, within the meaning of Section 17556 of the
5Government Code, or changes the definition of a crime within the
6meaning of Section 6 of Article XIII B of the California
7Constitution.

8However, if the Commission on State Mandates determines that
9this act contains other costs mandated by the state, reimbursement
10to local agencies and school districts for those costs shall be made
11pursuant to Part 7 (commencing with Section 17500) of Division
124 of Title 2 of the Government Code.

13

SEC. 11.  

Notwithstanding Section 2229 of the Revenue and
14Taxation Code, no appropriation is made by this act and the state
15shall not reimburse any local agency for any property tax revenues
16lost by it pursuant to this act.



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