BILL ANALYSIS
SENATE REVENUE & TAXATION COMMITTEE
Senator Lois Wolk, Chair
SB 822 - Committee on Revenue and Taxation
Introduced: March 10, 2009
Hearing: April 22, 2009 Fiscal: Yes
SUMMARY: Enacts Several Technical Changes to Property Tax
Law Sponsored by the California Assessors'
Association
I. Scale Copies in Electronic Format
EXISTING LAW requires that when a taxpayer files an
approved set of building plans with the city, county, or
city and county, he or she shall also send a scale copy to
the assessor. The scale copy shall be in sufficient detail
for the assessor to determine the square footage of the
building and the intended use of each room. The law does
not proscribe a format for the scale copy.
THIS BILL allows a taxpayer to submit a scale copy in
either paper or electronic format.
II. Increase in Real Property Exemption Amount
EXISTING LAW allows county boards of supervisors to
enact an ordinance exempting from the property tax any real
or personal property which has a value so low that the
total taxes received is less than the costs of assessment
and collection. However, counties cannot exempt property
with a value that exceeds $5,000, except for specified
possessory interests. Counties must determine the
SB 822 - Committee on Revenue and Taxation
Page 3
exemption level by calculating costs, and apply the
exemption uniformly for different classes of property.
THIS BILL increases the minimum amount from $5,000 to
$10,000, accounting for assessment cost changes since the
Legislature raised the $5,000 cap in 1996.
III. Disabled Veterans Property Tax Exemption Data
EXISTING LAW provides a disabled veterans' property
tax exemption of $111,276 or $166,944, depending on income.
Taxpayers claiming the disabled veterans' property tax
exclusion must occupy the home in which they claim the
exemption.
THIS BILL provides that assessors shall supply the BOE
with information from disabled veterans' property tax
exemption claims and county records upon written request.
The measure states that sharing information helps to
prevent duplication of the exemption and improper
overlapping with other benefits. BOE may specify that
information include all or part of names and social
security numbers of claimants and spouse and the identity
and location of the dwelling to which the exemption
applies. BOE may require the information to be in the form
of data-processing media.
IV. Board of Directors Designating Person to Sign Property
Statements
EXISTING LAW requires each person with taxable
personal property with an aggregate cost of $100,000 or
more for any assessable year to file a signed property
statement with the assessor. Any person owning property
with an aggregate cost of below $100,000 must submit a
signed property statement upon request of the assessor. In
the case of a corporate owner of property, the statement
shall be signed either by an officer of a corporation or an
employee or agent. The law requires the board of directors
SB 822 - Committee on Revenue and Taxation
Page 3
of the corporation to designate in writing the individual
signing the property statement.
THIS BILL deletes the requirement that the board of
directors of the corporation designate in writing the
individual signing the property statement.
V. Property Statement Forms
EXISTING LAW allows information required of the
taxpayer to be submitted as attachments to the property
statement, as long as the taxpayer signs one copy of the
property statement as printed by the assessor and carries
an appropriate reference to the attached data, or is
submitted electronically.
THIS BILL removes the requirement that the property
owner signs a copy of the property statement printed and
mailed by the assessor to the property owners, and instead
allows property owners to sign the attachments, removing
the need for the taxpayer to send back a second
assessor-generated form.
VI. Separate Assessment for Remaining Subdivision Parcels
EXISTING LAW prohibits the county assessor from making
a separate valuation for a parcel covered by a subdivision
map filed for record after the lien date immediately
preceding the prior fiscal year, which can result in some
lots created after January 1st taking 18 months to appear
on the assessment roll when nearby lots are newly
constructed or change ownership.
THIS BILL allows a county board of supervisors to
enact an ordinance providing for a separate valuation of
parcels by majority vote.
SB 822 - Committee on Revenue and Taxation
Page 3
FISCAL EFFECT:
BOE estimates possible negligible revenue gains to
local agencies resulting from exempting properties from
property tax where the total taxes fall below the costs of
assessment and collection.
COMMENTS:
A. Purpose of the Bill.
Sponsored by the California Assessors' Association, SB
822 is a technical, non-controversial bill that improves
local administration of property tax laws for the benefit
of taxpayers and assessors alike. Consolidating the
measures into a single bill negates the need for individual
bills to enact each change. Additionally, the measure only
contains items with universal agreement; items that are
controversial or problematic will be removed from the
bill."
Support and Opposition
Support:California Assessors' Association
Oppose:None known.
---------------------------------
Consultant: Colin Grinnell
SB 822 - Committee on Revenue and Taxation
Page 3