BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1480|
|Office of Senate Floor Analyses | |
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CONSENT
Bill No: SB 1480
Author: Committee on Governance and Finance
Introduced:3/17/16
Vote: 21
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 4/20/16
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach,
Pavley
SUBJECT: Property tax: local government property:
application
SOURCE: Board of Equalization
DIGEST: This bill strikes the current deadline for appealing
assessments to the Board of Equalization (BOE) of previously
taxable properties owned by local government but located in
other jurisdictions, and replaces it with November 30th.
ANALYSIS:
Existing law:
1)Provides that all property is taxable and shall be assessed at
the same percentage of fair market value, unless explicitly
exempted by the California Constitution or federal law.
2)Exempts property owned by a local government from taxation,
unless the property is located outside the boundaries of the
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local government that owns it, and the property was taxable
before its acquisition, in which case the assessor in the
county where the property is located values it for tax
purposes.
3)States that assessment of these properties shall be subject to
review, equalization, and adjustment by the BOE, not the
assessment appeals board.
4)Sets a deadline for local agencies to file appeals for these
assessments 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.
This bill 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.
Background
The California Constitution provides unique treatment for
property owned by a local agency, but located outside its
boundaries, and taxable before the local agency acquired it.
These are known as "Section 11 properties" after the Section of
Article XIII that provides for its property tax treatment. The
deadline for the local government to appeal the assessment to
BOE 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. This
bill's revised deadline is more familiar than the current one,
and will give the local agency more time to decide whether to
appeal.
According to BOE, counties filed five appeals in the last 20
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years, with four settled, and BOE deciding one. BOE adds that
no appeals are currently pending.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified4/21/16)
Board of Equalization (source)
OPPOSITION: (Verified4/21/16)
None received
ARGUMENTS IN SUPPORT: According to BOE, "This measure
extends the Section 11 appeals deadline to reflect the November
30 deadline provided to other property owners in most counties.
For administrative simplicity, a single deadline for all appeals
filed with the BOE, regardless of the county in which the
property is located, is preferable and affords local governments
the maximum amount of time to file. This bill proactively
prevents a local government from mistakenly filing an appeal
according to the county deadline when the earlier state deadline
applies. Providing local governments less time to decide to
proceed with an appeal than is available to other locally
assessed property owners in the county lacks a rational basis.
Moreover, extending the appeals deadline would not negatively
impact the BOE's operations."
Prepared by:Colin Grinnell / GOV. & F. / (916) 651-4119
4/22/16 12:32:07
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