BILL ANALYSIS
AB 992
Page 1
ASSEMBLY THIRD READING
AB 992 (Lieu)
As Amended April 21, 2009
Majority vote
BUSINESS & PROFESSIONS 9-0APPROPRIATIONS 16-0
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|Ayes:|Hayashi, Eng, Hernandez, |Ayes:|De Leon, Nielsen, |
| |Nava, Niello, John A. | |Ammiano, Charles |
| |Perez, Price, Ruskin, | |Calderon, Davis, Duvall, |
| |Smyth | |Krekorian, Hall, Harkey, |
| | | |Miller, John A. Perez, |
| | | |Price, Skinner, Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson, |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Recasts provisions relating to a property assessment
appeal filing service to instead make them applicable to an
assessment reduction filing service, as defined, and places
additional restrictions on the activities of an assessment
reduction filing service. Specifically, this bill :
1)Makes it unlawful for a person to make any untrue or
misleading statements in any manner in connection with the
offering or performance of an assessment reduction filing
service, which is defined as any service performed or offered
to be performed for compensation in connection with an
application or request of any kind of reduction in assessment
of residential property, as specified, or to provide
comparable sales information in connection with such an
application or request.
2)Includes in the definition of an assessment reduction filing
service those services performed by a person who actively
advocates, in person or by written and oral communications, on
the behalf of the person to whom a solicitation is made before
the assessment appeals board or the assessor's office.
3)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
AB 992
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application, until after the request is filed with the
assessor or until after the assessment appeal is filed with
the clerk of the assessment appeals board, as specified.
4)Makes it unlawful for an offeror of an assessment reduction
filing service to file a request or application of any kind
for reduction in assessment without first obtaining a written
authorization from the property owner, as specified.
EXISTING LAW :
1)Provides that certain advertising related practices are
unlawful and makes a violation of those provisions a crime.
2)Makes it unlawful for a person to make any untrue or
misleading statements in any manner in connection with the
offering or performance of an assessment appeal application
filing service, which is defined as any service performed or
offered to be performed for compensation in connection with an
application for reduction in assessment of residential
property, as specified.
3)Exempts from the definition of an assessment appeal
application filing service any service performed by a person
who actively advocates, in person or by written and oral
communications, on the behalf of the person to whom a
solicitation is made before the assessment appeals board or
the assessor's office.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, there are no significant costs associated with this
legislation.
COMMENTS : According to the author's office, "Property values
have dropped dramatically since the staggering increase that
occurred during the real estate boom earlier this decade.
Against this backdrop, a blatant scam has arisen where private
companies contact homeowners and 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. In addition to the
fee, there is a penalty charge assessed if payment is not
received by a specific date.
AB 992
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Homeowners can already apply for a reduction in property tax
value - and a resulting lower tax - without charge. It is a
free service and the application process is relatively simple.
Current law regulates solicitations to assist homeowners in
having their property values reassessed, including important
disclosures to help homeowners understand that solicitations
don't come from government agencies. However, an exception
exists for those who 'actively advocate' on behalf of the
property owners. Solicitors are using this exemption as a
loophole to avoid any disclosures. AB 992 removes the 'actively
advocate' exemption while concurrently banning any advance
payment until after documents are actually filed on behalf of
the homeowner."
In all counties in California, either one or more assessment
appeals boards or a county board of supervisors performs the
duties of a local board of equalization, commonly referred to as
an appeals board. The appeals board is an independent entity
whose function is to resolve disputes between the county
assessor and taxpayers over values of locally assessed property.
The decisions of an appeals board are legally binding and
enforceable.
According to the State Board of Equalization (Board), "An
assessment appeal is the due process a taxpayer may initiate if
the assessed value of his or her property cannot be agreed upon
with the county assessor. A county's appeals board, a
quasi-judicial body consisting of impartial persons or a hearing
officer, hears evidence from both parties before deciding upon
the value of the property in question. The assessment appeal
process provides for the 'equalization,' or the fairness of the
assessment, of a property's value."
Analysis Prepared by : Rebecca May / B. & P. / (916) 319-3301
FN: 0000732