BILL ANALYSIS �
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THIRD READING
Bill No: SB 1464
Author: Senate Governance and Finance Committee
Amended: As introduced
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 4/24/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
SUBJECT : Property taxation
SOURCE : State Board of Equalization
DIGEST : This bill makes four technical, consensus changes to
property tax law suggested by the State Board of Equalization
(BOE).
ANALYSIS : This bill contains four changes to property tax law
suggested by the BOE:
I. Name Change . State law directs the BOE to determine the
interest rate on the capitalization rate that assessors use
to value historic property using data published by the
Federal Home Finance Board. However, the Federal Home
Finance Board changed its name to the Federal Home Finance
Agency.
This bill updates the law to reflect the change.
II Consistent Terms . When taxpayers file property tax appeals,
the appellate body can be either the county board of
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supervisors sitting as the county board of equalization, or
the board can create an assessment appeals board consisting
of members with specified qualifications. Unfortunately,
some parts of property tax law don't consistently refer to
both terms, including disaster relief law.
This bill provides that when assessors notify taxpayers that
they're potentially eligible to appeal valuation changes
resulting from a disaster, they can appeal to the assessment
appeals board in addition to the county board of
equalization.
III. Cross reference . Current law allows for changes in
ownership without reassessment, including when a parent or
child transfers property to a disabled ward or a child by
will, devise, or inheritance. Revenue and Taxation Code
Section 62, which allows the transfers, relies on a
definition for "disability" in subdivision (e) of Section
12304 of the Health and Safety Code, but in 1991, the
Legislature re-lettered the definition to subdivision (d) of
that section.
This bill corrects the cross-reference.
IV. Delete superfluous term . The Public Resources Code uses the
term "nonprofit organization" when it allows groups to
operate state parks on behalf of the state, but the
cross-referenced Revenue and Taxation Code currently uses
both "nonprofit corporation" and "nonprofit organization"
when exempting these groups from the possessory interest tax.
Because nonprofit organizations need not incorporate to
qualify under the Public Resources Code, the bill deletes
"nonprofit corporation" from the Revenue and Taxation Code
section.
Comments
This bill is this year's omnibus property tax law cleanup bill,
and makes four technical, consensus changes intended to improve
tax administration for taxpayers, assessors, and the BOE. By
combining four changes into one bill, there's no need for
individual legislative bills for each change. This bill is a
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consensus project should anyone object to any provision of the
bill, it's removed.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
According to the Senate Governance and Finance Committee, the
BOE states that this bill has no impact on property tax
revenues.
SUPPORT : (Verified 4/29/14)
State Board of Equalization (source)
AB:d 4/30/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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