Bill Text: CA SB1093 | 2015-2016 | Regular Session | Amended
Bill Title: Property taxes: assessment: commercial and industrial property.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2016-11-30 - From committee without further action. [SB1093 Detail]
Download: California-2015-SB1093-Amended.html
BILL NUMBER: SB 1093 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 11, 2016
INTRODUCED BY Senator Hancock
(Principal coauthor: Senator Mitchell)
FEBRUARY 17, 2016
An act relating to taxation. to add
Section 54 to the Revenue and Taxation Code, relating to local
government finance, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1093, as amended, Hancock. Property taxes: assessment:
commercial and industrial property.
The California Constitution generally limits ad valorem taxes on
real property to 1% of the full cash value of that property. For
purposes of this limitation, "full cash value" is defined as the
assessor's valuation of real property as shown on the 1975-76 tax
bill under "full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or a change in
ownership has occurred.
Senate Constitutional Amendment 5 of the 2015-16 Regular Session,
if approved by the voters, commencing on the lien date for the
2018-19 fiscal year, would require the full cash value of commercial
and industrial property to be the fair market value of that property
as of the lien date, and would require the Legislature to enact
legislation to phase in the reassessment of commercial and industrial
property as so described in order to ensure a reasonable workload
and implementation period for county assessors and taxpayers.
This bill, pursuant to that constitutional requirement, for the
2018-19 fiscal year, would require only 50% of those properties that
have not been reassessed at fair market value, as specified, to be
assessed at fair market value, and by the 2019-20 fiscal year, would
require all other properties that have not been brought to fair
market value to be assessed at fair market value. The bill would
require owners of property subject to reassessment to pay only a
portion, as provided, of any increase in property tax due in the
first and 2nd years after initial reassessment to fair market value.
This bill would take effect immediately as a tax levy, but would
become operative only if SCA 5 is approved by the voters.
This bill would state the intent of the Legislature to enact
legislation necessary to implement the transition to the assessment
of commercial and industrial property on a periodic basis as would be
provided pursuant to Senate Constitutional Amendment 5 of the
2015-16 Regular Session, as provided.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 54 is added to the
Revenue and Taxation Code , to read:
54. For the purpose of phasing in the reassessment of commercial
and industrial property as required pursuant to subdivision (b) of
Section 2.5 of Article XIII A of the California Constitution, both of
the following shall apply:
(a) (1) For the 2018-19 fiscal year only, the requirement that
those commercial and industrial properties subject to reassessment
under subdivision (a) of Section 2.5 of Article XIII A of the
California Constitution be assessed at fair market value shall apply
only to the 50 percent of those properties that have not been brought
to fair market value for any part of their property for the greatest
number of years prior to the 2018-19 lien date.
(2) Owners of property subject to this subdivision shall pay
one-third of the amount of any increase in property tax due and
payable resulting from initial assessment to fair market value in the
first year upon receiving the new valuation required by paragraph
(1), two-thirds of the amount of any increase in property tax due and
payable in the second year, and the full amount of any property tax
due and payable in the third year after initial reassessment to fair
market value and in subsequent years thereafter. The balance of the
amounts due for the first and second years following initial
assessment to full market value are hereby forgiven.
(3) For the 2019-20 and 2020-21 fiscal years only, the assessed
value of properties assessed at full market value pursuant to
paragraph (1) shall be increased by the rate of inflation, but not
more than 2 percent. In no event, however, shall the assessed value
of a property exceed the fair market value as of the lien date during
this period.
(b) (1) All other commercial and industrial properties subject to
reassessment under subdivision (a) of Section 2.5 of Article XIII A
of the California Constitution shall be assessed at fair market value
by the 2019-20 lien date.
(2) Owners of property subject to this subdivision shall pay
one-half of the amount of any increase in property tax due and
payable resulting from initial assessment to fair market value in the
first year upon receiving the new valuation required by paragraph
(1) and the full amount of any property tax due and payable in the
year following initial reassessment and in subsequent years
thereafter. The balance of the amount due for the first year
following initial assessment to full market value are hereby
forgiven.
(3) For the 2020-21 fiscal year only, the assessed value of
properties assessed at full market value pursuant to paragraph (1)
shall be increased by the rate of inflation, but not more than 2
percent. In no event, however, shall the assessed value of a property
exceed the fair market value as of the lien date during this period.
SEC. 2. This act provides for a tax levy within
the meaning of Article IV of the California Constitution and shall go
into immediate effect. However, the provisions of this act shall
become operative only if Senate Constitutional Amendment 5 of the
2015-16 Regular Session is approved by the voters and, in that event,
shall become operative on January 1, 2018.
SECTION 1. It is the intent of the Legislature
to enact legislation necessary to implement the transition to the
assessment of commercial and industrial property on a periodic basis
as would be provided pursuant to Senate Constitutional Amendment 5 of
the 2015-16 Regular Session, so as to ensure that the owners of
those properties pay their fair share of property taxes for local
education and other community services.
