BILL ANALYSIS
AB 992
Page 1
Date of Hearing: May 13, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 992 (Lieu) - As Amended: April 21, 2009
Policy Committee: Business and
Professions Vote: 9 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill recasts provisions relating to a property assessment
appeal filing service to instead make them applicable to an
assessment reduction filing service and places additional
restrictions on the service. Specifically, this bill:
1)Makes it unlawful for a person to make any untrue or
misleading statements in any manner in connection with
offering, for compensation, to seek a reduction on behalf of a
homeowner in the assessment of residential property.
2)Prohibits an assessment reduction filing service from
charging, demanding, or collecting money in connection with a
request for review, or in connection with an assessment appeal
application, until after the request is filed with the
assessor.
3)Makes it unlawful for an assessment reduction filing service
to file a request or application of any kind on behalf of a
property owner without first obtaining written authorization
from the owner.
FISCAL EFFECT
There are no significant costs associated with this legislation.
COMMENTS
1)Purpose . According to the author, AB 992 is an attempt to
address the increase in property tax scams resulting from the
AB 992
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rapid decline in housing prices. This decrease in housing
values has resulted in private companies contacting homeowners
with an offer to help them lower their property tax bill. The
company offers to file a property tax reduction request with
the assessor's office, in return for an up front fee of
several hundred dollars. Along with the fee, a penalty charge
is often assessed if payment is not received by a specific
date. In addition, the author points out that those companies
are sending these solicitations in official-looking envelopes
and design the letters to look like they came from a
government agency. Finally, the author notes that the same
service is free from the local assessor's office and there is
no need for a homeowner to pay a private company in order to
request a reduction in property taxes
2)Residential Property Taxes . Proposition 13, passed in 1978,
established the guidelines for determining property taxes in
the state. The assessed value of property is established when
it is either purchased or built. In addition, homeowners are
allowed a temporary reduction in assessed value when the
current market value of a property is less than the value
shown on the property tax bill.
Homeowners who purchased their homes at or near the top of the
market may have an assessed value that is higher than the
market value. In those cases, the homeowner is entitled to a
temporary reduction in property taxes. The reduction will
last only as long as the market value for the property remains
below the trended value, which is the first year value
increased by two percent annually.
3)Committee Suggestion . As the bill is currently written, it
simply makes it "unlawful" for an assessment reduction filing
service to undertake certain activities or make certain
claims. This language does not create a crime and is
unenforceable. The author and the committee may wish to amend
the bill to specify that these activities are a crime (felony,
misdemeanor, or infraction).
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081