BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 947
                                                                  Page  1

          Date of Hearing:   August 17, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

             SB 947 (Committee on Governance and Finance) - As Amended:  
                                   June 29, 2011 

          Policy Committee:                             Local 
          GovernmentVote:9-0
                       Revenue and Taxation                       9-0

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill makes 14 non-controversial changes to property tax 
          collection laws.  

           FISCAL EFFECT 

          There will be minor and absorbable costs for the Board of 
          Equalization (BOE) to administer the provisions of the bill.  

          The bill imposes a state-mandated local program but provides 
          that no reimbursement is required for costs that may be incurred 
          by a local agency or school district because they are related to 
          changing an existing penalty.  The bill also states that no 
          local agency shall be reimbursed for any property tax revenues 
          that are lost as a result of the changes in law.  Nevertheless, 
          the bill does provide a mechanism for reimbursement of mandated 
          costs should the Commission on State Mandates determines that 
          there are other reimbursable costs mandated by the state.  Such 
          costs are unlikely to be significant.

           COMMENTS  

           1)Purpose of this Bill  .  SB 947 enacts a multitude of minor 
            changes to property tax law that is sponsored and approved 
            unanimously by BOE.  This bill is intended to improve the 
            administration of property tax laws to help both taxpayers and 
            tax administration agencies.  According to the author, this 
            bill contains only non-controversial items. 









                                                                  SB 947
                                                                  Page  2

           2)Reimbursement of property tax.   Existing law requires the 
            state to reimburse local governments for any loss in property 
            taxes from any legislative exemption or classification of 
            property.  This bill contains a specific exclusion that 
            provides that any property tax losses will not be reimbursed.
              


           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081