BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2046|
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THIRD READING
Bill No: AB 2046
Author: Allen (D) and Huffman (D)
Amended: 5/21/12 in Assembly
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 6-1, 7/3/12
AYES: Wolk, Dutton, DeSaulnier, Hernandez, Kehoe, Liu
NOES: Fuller
NO VOTE RECORDED: La Malfa, Yee
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/16/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
ASSEMBLY FLOOR : 48-25, 5/31/12 - See last page for vote
SUBJECT : Property taxation: change in ownership
SOURCE : Author
DIGEST : This bill extends provisions applicable to
mobile home parks to transfers of floating home marinas to
current tenants of berths at the marina. This bill
excludes these transfers from the definitions of change of
ownership, thereby precluding reassessment of the marina to
fair market value upon transfer, so long as specified
conditions are met.
ANALYSIS : Section One of Article XIII of the California
Constitution (Constitution) provides that all property is
CONTINUED
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taxable unless explicitly exempted by the Constitution or
federal law. The Constitution limits the maximum amount of
any ad valorem tax on real property at 1% of full cash
value, usually the purchase price, plus any
locally-authorized bonded indebtedness. Assessors
reappraise property whenever it is purchased, newly
constructed, or when ownership changes. However, a change
of ownership generally does not include any situation where
one person continues to own or reside in the home, such as
placing property in a trust, creating a life estate, or
purchasing the land under a mobile home.
This bill extends provisions applicable to mobile home
parks to transfers of floating home marinas to current
tenants of berths at the marina. This bill excludes these
transfers from the definitions of change of ownership,
thereby precluding reassessment of the marina to fair
market value upon transfer, so long as:
The transfer is to a nonprofit corporation, stock
cooperative corporation, limited equity stock
cooperative, or other entity formed buy tenants to
purchase the marina.
The currently renting tenants seeking to purchase the
marina total at least 51% of its berths through the
ownership of an aggregate of at least 51% of the voting
stock of the entity described above.
Should any of the tenants that are excluded from the
reassessment under this bill subsequently sell or
transfer their share, that pro rata share shall be
reassessed to fair market value, unless the marina has
been converted to a condominium, stock cooperative
ownership, or limited equity cooperative ownership, or is
otherwise precluded.
This bill further requires a floating home marina that does
not utilize recorded deeds to file a report on or before
February 1 of each year with:
The full names and mailing addresses of each owner,
The situs address including berth and dock number of each
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unit,
The date ownership was acquired, and
The Department of Housing and Community Development decal
number.
New resident owners, purchasers, or transferees of a
floating home in a park must file a preliminary change in
ownership report or a change in ownership statement. This
bill imports a definition of "floating home marina" from
the Civil Code and "pro rata portion of the real property"
from the mobile home park exclusion.
Comments
Assessing mobile homes for property tax purposes generally
differs from typical assessment: one taxpayer (the mobile
homeowner) is assessed for the value his/her structure,
while another (the mobile home park owner) pays tax on the
park under the structure, unless the owner both owns the
home and the park, in which case he/she is assessed for
both. When tenants who rent the individual spaces in the
park want to buy it, state law provides that the transfer
does not constitute a change-in-ownership subject to
reassessment, subject to specified conditions. However,
once excluded, any subsequent change of ownership of the
shares of stock or other equity ownership in the park
purchased by the former renters results in a pro rata
change in ownership, that particular share in the park
would be reassessed to current market value.
As fixed structures with no means of self-propulsion that
rest in permanent berths in marinas, floating homes are
subject to property taxes. Floating homes are connected to
utilities and services. Floating home marinas are
privately owned and charge homeowners monthly berthage
fees. Five marinas of 400 floating homes can be found in
Richardson Bay in Sausalito, California.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
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Based on limited data, the Board of Equalization
estimates that this bill will result in a statewide
reduction in property tax revenues of approximately
$212,000 annually. Assuming 50% of the statewide
property tax revenues offset General Fund obligations to
schools pursuant to Proposition 98, the State General
Fund impact would be approximately $106,000 due to
increased state backfill provided to schools. Actual
General Fund impacts would depend upon a number of
factors.
Likely minor reimbursable mandate costs related to the
imposition of new duties on local tax officials related
to the new change in ownership exclusion. (General
Fund)
SUPPORT : (Verified 8/20/12)
A Dock, Waldo Point Harbor (Sausalito)
Commodore Dock (Sausalito)
Floating Homes Association, Inc.
Gate 6 Dock (Sausalito)
Harbor Equity Group, Inc.
Kappas West Pier (Sausalito)
Marin County Assessor-Recorder-County Clerk
ASSEMBLY FLOOR : 48-25, 5/31/12
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Bonilla, Bradford, Brownley, Buchanan, Butler, Campos,
Carter, Cedillo, Chesbro, Davis, Dickinson, Eng, Feuer,
Fong, Fuentes, Furutani, Galgiani, Gatto, Gordon, Hall,
Hayashi, Roger Hern�ndez, Hill, Huber, Hueso, Huffman,
Lara, Bonnie Lowenthal, Ma, Mitchell, Pan, Perea, V.
Manuel P�rez, Portantino, Skinner, Solorio, Swanson,
Torres, Wieckowski, Williams, Yamada, John A. P�rez
NOES: Achadjian, Bill Berryhill, Blumenfield, Conway,
Cook, Donnelly, Beth Gaines, Garrick, Gorell, Grove,
Hagman, Halderman, Harkey, Jeffries, Jones, Knight,
Logue, Miller, Morrell, Nestande, Nielsen, Olsen, Silva,
Smyth, Wagner
NO VOTE RECORDED: Charles Calderon, Fletcher, Mansoor,
Mendoza, Monning, Norby, Valadao
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AGB:dk 8/20/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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