BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1329 (Hertzberg) - Property taxation: certificated aircraft ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 26, 2016 |Policy Vote: GOV. & F. 5 - 0, | | | JUD. 4 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 27, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- 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 ? 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. -- END --