BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 822
                                                                  Page  1

          Date of Hearing:  July 1, 2009

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, Chair
            SB 822 (Committee on Revenue and Taxation) - As Amended:  June  
                                      23, 2009

           SENATE VOTE  :  36-0
           
          SUBJECT  :  Property taxation:  local administration.

           SUMMARY  :  Makes various non-controversial changes to the  
          administrative provisions of the property tax law.   
          Specifically,  this bill  :   

          1)Allows the county assessor, at the time of the filing of an  
            approved building plan with the city or county, to require a  
            scale copy of floor plans and exterior dimensions of the  
            building in an electronic format from the property owner, if  
            available. 

          2)Increases from $5,000 to $10,000 the maximum amount of the  
            "low-value ordinance" exemption that may be granted by a  
            county board of supervisors to real or personal property  
            qualified for that exemption.

          3)Allows county assessors to supply information from disabled  
            veterans' property tax exemption claims and county records to  
            the State Board of Equalization (BOE), as specified by BOE's  
            written request, in order to prevent approvals of multiple  
            disabled veterans' property tax exemption claims within the  
            state for the same homeowners. 

          4)Deletes, in the case of a corporate owner of property, a  
            requirement that the employee or agent who signs the property  
            statement be designated in writing by the corporation's board  
            of directors.  

          5)Provides the taxpayer, in lieu of completing the property tax  
            statement as printed by the assessor, with an option to file a  
            business property statement that is substantially similar to  
            the property statement, and provides that the assessor may  
            consider information provided by any of the methods as  
            specified in this section.









                                                                  SB 822
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          6)Allows a county assessor to make a separate valuation of a  
            parcel covered by a subdivision map filed for record after the  
            lien date immediately preceding the current fiscal year, but  
            only if the board of supervisors of that county enacts an  
            ordinance, by majority vote, providing for a separate  
            valuation of parcels. 

           EXISTING LAW  :

          1)Requires assessors to assess all new construction that occurs  
            within their county for property tax purpose.

          2)Requires city and county building departments to provide the  
            local county assessor with a copy of all building permits  
            issued, and requires property owners to file with the local  
            assessor a scale copy of floor plans and exterior dimensions  
            designated for the assessor's use. 

          3)Provides that all property is taxable unless otherwise  
            exempted by the California Constitution or federal law, and  
            authorizes a county board of supervisors to exempt from  
            property tax those real and personal properties having a full  
            value too low to justify the costs of assessment and  
            collection. 

          4)Limits this exemption, which is referred to as the "low-value  
            ordinance" exemption, granted by each county board of  
            supervisors to property with a value not exceeding $5,000,  
            except that in the case of a possessory interest in specified  
            facilities, the limit is increased to $50,000.

          5)Authorizes the exemption from property taxation of the  
            principal residence of a qualified disabled veteran, or  
            his/her surviving spouse, in the case where a person has, as a  
            result of a service-related disease or injury, becomes  
            disabled or died while on active duty in military service. 

          6)Requires, in the case of a corporate owner of property, a  
            business property statement to be signed either by an officer  
            of the corporation or an employee or agent who has been  
            designated in writing by the board of directors. 

          7)Requires the county assessor to mail a property statement to  
            any person required to file one, in order to prompt taxpayers  
            to complete and file annual property statements.  








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          8)Allows a taxpayer, in lieu of completing the property  
            statement as printed by the assessor, to furnish the required  
            information as attachments to the property statement, provided  
            that one copy of the statement is signed by the taxpayer and  
            contains an appropriate reference to the data attached.  

          9)Prohibits the county assessor from making a separate valuation  
            on any parcel covered by a subdivision map filed for record  
            after the lien date immediately preceding the current fiscal  
            year. 

           FISCAL EFFECT  :   According to the Assembly Revenue and Taxation  
          Committee analysis, BOE estimates that this bill will have no  
          effect on the amount of revenues collected by the state or local  
          governments.  However, BOE estimates that, for any county that  
          would opt to raise the "low value" exemption to an amount  
          exceeding $5,000, there would be a small cost savings equal to  
          the difference between the costs of assessing and billing and  
          the tax proceeds for properties that would qualify for the low  
          value property exemption only under the increased limit.

           COMMENTS  :   

          1)SB 822 is sponsored by the California Assessors' Association,  
            and is substantially similar to AB 3080 (Committee on Revenue  
            and Taxation) from the 2007-08 session.  AB 3080 was vetoed by  
            Governor Schwarzenegger, who cited the historic budget delay  
            in his veto message. 

          2)According to the author, SB 822 is a "technical,  
            non-controversial bill that improves the local administration  
            of property tax laws for the benefit of taxpayers and  
            assessors alike."  SB 822 

          is intended to provide for several minor changes in the Revenue  
            and Taxation Code through a single bill, rather than using  
            multiple bills for relatively minor non-controversial changes.  
             
          As such, all items in the bill have been vetted through  
            interested parties and have universal agreement to be included  
            in the bill.

          3)SB 822 was double-referred to the Assembly Committees on  
            Revenue and Taxation and Local Government.  It passed out of  








                                                                  SB 822
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            the Revenue and Taxation Committee 9-0 on June 15, 2009. 

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          CA Assessors' Association
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958