BILL ANALYSIS Ó SB 803 Page 1 Date of Hearing: August 26, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 803 (Committee on Governance and Finance) - As Amended July 15, 2015 ----------------------------------------------------------------- |Policy |Revenue and Taxation |Vote:|8 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill makes several minor, technical, and noncontroversial changes to property tax law to improve property tax administration and respond to recent litigation. FISCAL EFFECT: Minor and absorbable administrative costs to the Board of Equalization (BOE); no significant impact to state or local revenues. SB 803 Page 2 COMMENTS: Purpose. BOE, the sponsor of this bill, asserts this bill is designed to: 1)Replace the possessory interest valuation methodology for state retirement system-owned property, which a court ruled unconstitutional, with a reference to the pre-existing regulation; 2)Clarify that tax collectors may begin accepting property tax payments beginning November 1 each year, even if the county fails to post notice by that date indicating taxpayers may begin remitting payments; 3)Clarify the intent of existing law that the exemption from new base year valuations for transfers from parents to children shall also apply to transfers of ownership interests in manufactured home parks or floating home marinas when the properties are owned in the name of a legal entity; 4)Clarify the parent-child exemption from base year reassessments for property transfers also applies to property the parent receives to replace property seized via eminent domain; 5)Provide an additional year to challenge tax sales in court when the challenge is initiated one year after rejection of a petition to the county board of supervisors to rescind the sale; SB 803 Page 3 6)Correct improper statutory references related to Williamson Act assessments; and 7)Extend for five years the assessment valuation methodology for inter-county pipeline rights-of-way, which will otherwise sunset in 2016. Analysis Prepared by:Joel Tashjian / APPR. / (916) 319-2081