BILL ANALYSIS �
AB 2756
Page 1
Date of Hearing: May 14, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2756 (Committee on Revenue & Taxation) - As Amended: April
22, 2014
Policy Committee: Revenue &
Taxation Vote: 6-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires any state, county, or municipal employee that
makes any decision regarding a "change in ownership" issue or a
property tax exemption, other than a homeowner's exemption, to
hold a valid assessment analyst certificate issued by the State
Board of Equalization (BOE). In summary, this bill:
1)Requires the BOE to prepare an examination with the assistance
and advice of the California Assessors' Association and
provide it for applicants; requires applicants to obtain a
passing grade and demonstrate they are competent to make
change in ownership and exemption decisions, and provides an
appeal right for those denied a certificate.
2)Requires the BOE to prescribe an advanced course of study and
prepare an advanced level examination with the assistance and
advice of the California Assessors' Association and requires
the BOE to issue an advanced assessment analyst certificate
for an applicant who has held a valid assessment analyst
certificate for at least three years and has either
successfully completed an advanced study course or passed an
advanced level examination.
3)Requires a certified assessment analyst to complete at least
24 hours of training conducted or approved by the BOE in each
one-year period; requires an advanced assessment analyst to
complete at least 12 hours of training in each one-year
period.
4)Exempts persons holding a valid appraiser's or advanced
AB 2756
Page 2
appraiser's certificate issued by the BOE from having to also
receive an assessment analyst certificate.
5)Prohibits the BOE from imposing any charge upon a county or
city and county or an applicant for an assessment analyst
examination or certification or training conducted by the BOE.
6)Allows the BOE to issue temporary and/or interim certificates
in limited circumstances.
FISCAL EFFECT
1)Estimated GF costs of approximately $175,000 in the first year
and $150,000 each year thereafter to the BOE to establish and
administer the certificate program.
2)Though the bill is not keyed a local mandate, there could be
substantial state mandated reimbursement of local costs given
the number of local government employees that would be
required to undergo annual training and certification. If a
mandate claim were approved by the Commission on State
Mandates, reimbursable costs to the GF could run into the
millions of dollars per year.
COMMENTS
1) Purpose. According to the authors, current law does not
require any certification or training for employees who make
change in ownership or exemption decisions. Those decisions,
however, can potentially add or eliminate millions of property
tax dollars each year. Change in ownership and exemption
decisions are highly complex, requiring a thorough
understanding of different legal documents, statutes,
regulations, and court decisions. This bill is intended to
ensure state and local employees making change in ownership
and exemption decisions are adequately trained and educated to
make those decisions.
The bill's sponsor, the California Assessors' Association,
further indicates that current law requires appraisers to be
certified, and this bill is needed to create similar
certification procedures for state and local government
employees making decisions with regard to change in ownership
and property tax exemptions. This bill creates a training
program required for any state, county, or municipal employee
AB 2756
Page 3
who is involved in making those decisions, except for
homeowners' exemption claims.
2) Change in Ownership. Since the adoption of Proposition 13 in
1978, real property has generally been taxed on its value at
the time of its acquisition, with increases for inflation
limited to 2% per year. The property is reassessed to its
market value when the ownership of property is changed. While
the requirement to reassess property upon a change in
ownership is contained in the California Constitution, the
phrase "change in ownership" is not defined. There have been
hundreds of court cases relating to interpretation of "change
in ownership" and exemption issues, leading to considerable
legal debate as to its meaning and intended interpretation.
Analysis Prepared by : Joel Tashjian / APPR. / (916) 319-2081