BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 822|
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THIRD READING
Bill No: SB 822
Author: Senate Revenue and Taxation Committee
Amended: As introduced
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 8-0, 4/22/09
AYES: Wolk, Walters, Alquist, Ashburn, Florez, Padilla,
Runner, Wiggins
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Property taxation
SOURCE : California Assessors Association
DIGEST : This bill makes several changes to the property
tax law relating to: (1) scale copies in electronic format,
(2) increase in real property exemption amount, (3)
disabled veterans property tax exemption data, (4)
signatures on property statements, (5) property tax forms,
and (6) separate assessment for subdivision parcels.
ANALYSIS : 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.
CONTINUED
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This bill allows a taxpayer to submit a scale copy in
either paper or electronic format.
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
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.
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.
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 of the
corporation to designate in writing the individual signing
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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.
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.
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.
Comments
This bill is a technical, non-controversial bill that
improves local administration of property tax laws for the
benefit of taxpayers and assessors alike. Consolidating
the bills into a single bill negates the need for
individual bills to enact each change. Additionally, the
bill only contains items with universal agreement; items
that are controversial or problematic will be removed from
the bill.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
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Local: No
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.
SUPPORT : (Verified 5/1/09)
California Assessors' Association (source)
DLW:nl 5/1/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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