BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Robert M. Hertzberg, Chair 2015 - 2016 Regular ------------------------------------------------------------------ |Bill No: |SB 1480 |Hearing |4/20/16 | | | |Date: | | |----------+---------------------------------+-----------+---------| |Author: |Committee on Governance and |Tax Levy: |No | | |Finance | | | |----------+---------------------------------+-----------+---------| |Version: |3/17/16 |Fiscal: |No | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant|Grinnell | |: | | ----------------------------------------------------------------- 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 of ? 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 of ? Support and Opposition (4/12/16) Support : Board of Equalization. Opposition : None received. -- END --