BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 157|
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THIRD READING
Bill No: AB 157
Author: Anderson (R), et al
Amended: 8/17/10 in Senate
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 5-0, 7/1/10
AYES: Wolk, Walters, Alquist, Ashburn, Padilla
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 76-0, 6/2/09 (Consent) - See last page for
vote
SUBJECT : Property taxation: transfer of base year value
SOURCE : Author
DIGEST : This bill allows San Diego County to extend the
period for taxpayers to transfer base year values for
disaster-affected property.
ANALYSIS : Existing law (California Constitution)
required the Legislature to allow taxpayers to transfer the
base-year value of property that is substantially damaged
or destroyed by a disaster, as declared by the Governor, to
comparable property within the same county that is acquired
or newly constructed as a replacement for the substantially
damaged or destroyed property (Proposition 50, 1986).
Existing law implements this constitutional requirement,
but limits the transfer of base-year value to replacement
CONTINUED
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property acquired or newly constructed within the same
county to five years after the disaster (to the extent that
the replacement property does not exceed 120 percent of the
fair market value of the old property immediately prior to
the disaster). In 2006, the Legislature extended the
deadline from three to five years for disasters occurring
on or after July 1, 2003 (AB 1890 [Mountjoy], Chapter 317,
Statutes of 2006). The deadline applies only when the
taxpayer acquires a new property or rebuilds in a different
location than the site of the disaster; taxpayers may
retain the base-year transfer an unlimited amount of time
to retaining the base-year value when rebuilding on the
site of the disaster because the Constitution exempts real
property that is reconstructed after a disaster from the
definition of "new construction" requiring reassessment.
Existing law (California Constitution) allows similar
treatment for taxpayers seeking to transfer their base-year
value to a replacement property acquired or newly
constructed in a different county for three years.
This bill allows the board of supervisors of San Diego
County to enact an ordinance to extend the five year period
by two years to transfer the base year value from property
that is substantially damaged or destroyed by the Cedar
Fire that commenced in October 2003, to a replacement
property in the same county.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/17/10)
Board of Equalization
California Association of Realtors
Cedar Fire Rebuilding Resource Group
La Mesa Chamber of Commerce
Lakeside Chamber of Commerce
Neptune Society
Ramona Fire Recovery Center
RB United
San Diego Association of Realtors
San Diego County Board of Supervisors
San Diego East County Chamber of Commerce
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San Miguel Consolidated Fire Protection District
Telophase Cremation Society
United Policyholders
ARGUMENTS IN SUPPORT : The author states, "Assembly Bill
157 is a disaster relief bill that would extend the
timeframe for survivors of the devastating 2003 Cedar Fire
to replace their fire-destroyed properties." The author
goes on to state, "Nothing will ever be the same again for
survivors of these catastrophic fire events, but we can
help. The time it takes to rebuild homes and lives cannot
be underestimated, and for many, restoration is an ongoing
challenge. Even now, property owners struggle to resolve
the necessary but time-consuming issues surrounding the
replacement of their [homes]. I introduced Assembly Bill
157 as a simple way to ensure a realistic timetable for
addressing the losses that survivors have suffered."
Proponents state, "Resolving compensation issues with an
insurer after a disaster damages or destroys an
individual's home can sometimes be a very protracted
process. AB 157 recognizes this fact and, as a result,
proposes to extend the period of time within which a
homeowner can transfer the property tax base year value to
a replacement property an additional two years."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Tom
Berryhill, Blakeslee, Blumenfield, Brownley, Buchanan,
Caballero, Charles Calderon, Carter, Chesbro, Conway,
Cook, Coto, Davis, De La Torre, De Leon, DeVore, Duvall,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Bill Berryhill, Block, Hall, Bass
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DLW:mw 8/17/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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