BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 822
                                                                  Page  1

          Date of Hearing:   July 15, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

            SB 822 (Committee on Revenue and Taxation) - As Amended:  June  
                                      23, 2009 

          Policy Committee:                             Revenue and  
          Taxation     Vote:                            9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill makes various changes to the administrative provisions  
          of the property tax law. Specifically, this bill: 

          1)Allows the county assessor to require copies of locally  
            approved building plans to be filed by the owner in an  
            electronic format, if available. 

          2)Increases from $5,000 to $10,000 the maximum amount that a  
            county may exempt from property taxes because the value is too  
            low to justify the costs of assessment and collection. 

          3)Allows county assessors to supply information from disabled  
            veterans' property tax exemption claims and county records to  
            the State Board of Equalization (BOE), upon BOE's written  
            request, in order to prevent approval 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)Authorizes the county assessor to accept property tax  
            information from taxpayers that is provided on a separate form  
            from that printed by the assessor, so long as the information  
            is substantially similar to that required by the printed  
            statement.









                                                                  SB 822
                                                                  Page  2

          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. 
           
          FISCAL EFFECT  
                     
           1)The increase in the low-value ordinance exemption would result  
            in a minor loss, likely less than $50,000, in local property  
            tax revenues to cities, counties, special districts, and  
            school districts. Under Proposition 98, the loss to school  
            districts (likely less than $20,000) would be backfilled by  
            the GF.

          2)County assessors would achieve administrative savings which  
            are equal or greater than the property tax loss. 
           
          COMMENTS  

           1)Purpose  . This bill is sponsored by the California Assessor's  
            Association, and is intended to make technical and non  
            controversial changes meant to improve the administration of  
            the property tax law. The provisions update and make  
            clarifying changes to law to facilitate efficient  
            administration of the tax. For example, the increase in the  
            $5,000 exemption for property assessments reflects the  
            increase cost of establishing and billing for assessments that  
            has occurred over time. 

           2)Previous legislation  . This bill is similar to AB 3080  
            (Assembly Revenue and Taxation Committee), which was  
            introduced in the 2007-08 Legislative Session.  AB 3080 was  
            vetoed. The governor cited the late budget and lack of time  
            for review.
           
           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081