BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
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|Bill No: |SB 1480 |Hearing |4/20/16 |
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|Author: |Committee on Governance and |Tax Levy: |No |
| |Finance | | |
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|Version: |3/17/16 |Fiscal: |No |
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|Consultant|Grinnell |
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Property tax: local government property: application
Changes the deadline for appeals for assessments of certain
properties owned by local governments (Section 11 properties).
Background
Section One of Article XIII of the California Constitution
provides that all property is taxable and shall be assessed at
the same percentage of fair market value, unless explicitly
exempted by the Constitution or federal law. One such exemption
is for property owned by a local government, unless the property
is located outside the boundaries of the local government that
owns it, and the property was taxable before its acquisition.
These are known as "Section 11 properties" after the Section of
Article XIII that provides for its property tax treatment. In
such a case, the assessor in the county where the property is
located values it for tax purposes, but the Constitution
provides that these assessments shall be subject to review,
equalization, and adjustment by the Board of Equalization (BOE),
not the assessment appeals board. According to BOE, counties
filed five appeals in the last 20 years, with four settled, and
BOE deciding one. BOE adds that no appeals are currently
pending.
Current law sets a deadline for local agencies to file Section
SB 1480 (Committee on Governance and Finance) Page 2
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11 appeals with BOE of either July 20th, or two weeks from the
date the assessor delivers the property tax roll containing the
assessment to the auditor, usually around mid-August, whichever
is later. However, this deadline is inconsistent with all other
assessment appeals deadlines, currently either September 15th or
November 30th, depending on whether the assessor mails notices
by certain dates. BOE wants to set one deadline for Section 11
appeals to simplify administration.
Proposed Law
Senate Bill 1480 strikes the current deadline for appealing
assessments to BOE of previously taxable properties owned by
local government but located in other jurisdictions, and
replaces it with November 30th.
State Revenue Impact
BOE states that SB 1480 has no impact on state or local
revenues.
Comments
1. Purpose of the bill . SB 1480 changes the deadline for
Section 11 appeals to November 30th from the current dual
deadline of either July 20th, or two weeks from the date the
assessor delivers the property tax roll. The revised deadline
is familiar, as it's the same as those for taxpayers filing
appeals. Additionally, a later deadline will give the local
agency more time to decide whether to appeal.
2. Committee Bill . Senate Rule 23 requires all members of the
Committee to sign Committee Bills prior to introduction, so SB
1480 must have universal agreement; should anyone object to a
provision in the measure, it will be removed.
SB 1480 (Committee on Governance and Finance) Page 3
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Support and
Opposition (4/12/16)
Support : Board of Equalization.
Opposition : None received.
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