BILL ANALYSIS
AB 1690
Page 1
Date of Hearing: April 14, 2010
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 1690 (Chesbro) - As Introduced: January 27, 2010
SUBJECT : Allows special tax treatment for losses sustained as a
result of the earthquake that occurred on January 9, 2010, in
Humboldt County. Specifically, this bill :
1)Provides reimbursement for property tax losses resulting from
the reassessment of properties damaged by the January 2010
earthquake in Humboldt County.
2)Requires, by October 30, 2010, the auditor of Humboldt County
to certify to the Director
of Finance an estimate for the total amount of the reduction in
property tax revenues resulting from the reassessment of
properties impacted by the January 2010 earthquake.
3)Requires the Director of Finance, within 30 days after
verification of the county auditor's property tax estimate, to
certify the amount to the State Controller for allocation to
the County for reimbursement in property tax loss.
4)Provides that any dwelling that qualified for a homeowners'
property tax exemption before the January 2010 earthquake in
Humboldt County, that was damaged or destroyed by that
earthquake, and that has not changed ownership since the date
of the disaster, shall not be denied a homeowners' exemption
solely because that dwelling was temporarily damaged or
destroyed, or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access.
5)Provides that a taxpayer's excess disaster loss shall be
carried forward to future years for any loss sustained in
Humboldt County as a result of the January 2010 earthquake.
6)States the intent of the Legislature to provide in the annual
Budget Act those additional reimbursements to local
governments for the property tax revenue reductions due to the
January 2010 earthquake in Humboldt County.
7)Specifies that if the Commission on State Mandates determines
that this bill contains costs mandated by the state, local
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agencies and school districts will be reimbursed for those
costs.
8)Makes findings and declarations that this act fulfills a
statewide public purpose because
of the Governor's declarations of a state of emergency, which
constituted conditions of extreme peril to public health and
safety to persons and property within Humboldt County, thus
qualifying affected persons for various forms of governmental
assistance and relief.
9)Contains an urgency clause.
EXISTING LAW :
1)Provides, under the California Disaster Assistance Act, a list
of disasters eligible for full state reimbursement of local
agency costs.
2)Provides for state reimbursement to backfill property tax
revenue loss resulting from assessment reductions in areas
that the Governor has declared to be in a state of emergency.
3)Provides for a standard homeowners' property tax exemption of
$7,000, and allows dwellings damaged in disasters declared by
the Governor to continue eligibility for the exemption.
4)Allows losses sustained because of a Governor-declared
disaster to be carried forward to each of the five taxable
years following the loss, or if the loss remains after the
five years, extends the loss for the next ten years.
5)Requires that the state share of reimbursement for local costs
due to a disaster not exceed 75% of total state eligible costs
unless the local agency is located within a city or county
that has adopted a local Hazard Mitigation Plan in accordance
with the federal Disaster Mitigation Act as part of the safety
element.
FISCAL EFFECT : Unknown
COMMENTS :
1)On January 12, 2010, Governor Schwarzenegger declared a state
of emergency as a result
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of the earthquake that occurred in Humboldt County on January 9,
2010. Traditionally, when a disaster has occurred in
California that receives a declaration of a state of emergency
by the Governor, the state has enacted legislation to keep
counties whole with respect to any loss
of property tax revenue the local government experienced from
reduced property values from the disaster. This bill follows
a longstanding state policy of backfilling county losses
resulting from reduced property values.
2)Support Arguments . AB 1690, sponsored by Humboldt County,
specifically provides that Humboldt County is eligible for
reimbursement due to the loss of property tax resulting from
the lower reassessed property value caused by the disaster.
Additionally, this bill will allow homeowners to carry forward
losses resulting from the earthquake into future taxable years
and ensures that standard property tax deductions continue for
those displaced from their homes by the earthquake.
The California State Association of Counties (CSAC), in
support, writes that "this type of disaster assistance is
critical to the recovery of the area because it allows owners
of homes and business damaged by natural disasters to be
eligible to apply for property tax relief."
3)Opposition Arguments . None at this time.
4)AB 1690 is similar to AB 1662 (Portantino), and AB 1766
(Gaines), which are currently pending in the Committee, and
other disaster bills that passed out of the Committee last
year. As these disaster relief bills move forward, each will
need to be amended to avoid chaptering out issues.
5)This bill is an urgency measure and will take effect
immediately upon the Governor's signature.
6)This bill is double-referred to the Committee on Revenue and
Taxation.
REGISTERED SUPPORT / OPPOSITION :
Support
County of Humboldt [SPONSOR]
CA Professional Firefighters
CA State Association of Counties
AB 1690
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Opposition
None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958