BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1329 (Hertzberg) - Property taxation:  certificated aircraft
          
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          |Version: April 26, 2016         |Policy Vote: GOV. & F. 5 - 0,   |
          |                                |          JUD. 4 - 2            |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: May 27, 2016      |Consultant: Robert Ingenito     |
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          Bill  
          Summary: SB 1329 would (1) extend for five years the existing  
          methodology for valuing certificated aircraft, excluding a 10  
          percent fleet reduction discount, and (2) permit trial de novo  
          for suits for refunds of locally-assessed property taxes on  
          certificated aircraft.


          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                      adopted by the committee on May 27, 2016




          Fiscal  
          Impact: 
                 The precise revenue impact of this bill relative to  
               current law is unknown. Property tax revenues for the  
               additional year utilizing the lead assessor methodology  
               could higher or lower than what would have occurred absent  
               the bill. Approximately 50 percent of property tax revenues  







          SB 1329 (Hertzberg)                                    Page 1 of  
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               statewide accrue to schools, which generally offsets state  
               General Fund obligations pursuant to Proposition 98.   
               Consequently, any change in the school share of property  
               tax revenues that is attributable to the bill's impact on  
               assessed values would, in turn, impact General Fund  
               expenditures.   

                 Implementation costs for the Board of Equalization would  
               be minor and absorbable.



          Committee  
          Amendments: Delete trial de novo, reinstate the 10 percent fleet  
          reduction discount, and extend the lead assessor methodology to  
          value certificated aircraft for one additional year, through  
          fiscal year 2017-18.


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