Today's Law As Amended

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SB-364 Property taxation: senior and disabled veterans.(2019-2020)



SECTION 1.

 Section 51 of the Revenue and Taxation Code is amended to read:

51.
 (a) For purposes of subdivision (b) of Section 2 of Article XIII A of the California Constitution, for each lien date after the lien date in which the base year value is determined pursuant to Section 110.1, the taxable value of real property shall, except as otherwise provided in subdivision (b) or (c), be the lesser of:
(1) Its base year value, compounded annually since the base year by an inflation factor, which shall be determined as follows:
(A) For any assessment year commencing prior to January 1, 1985, the inflation factor shall be the percentage change in the cost of living, as defined in Section 2212.
(B) For any assessment year commencing after January 1, 1985, and prior to January 1, 1998, the inflation factor shall be the percentage change, rounded to the nearest one-thousandth of 1 percent, from December of the prior fiscal year to December of the current fiscal year in the California Consumer Price Index for all items, as determined by the California  Department of Industrial Relations.
(C) For any assessment year commencing on or after January 1, 1998, the inflation factor shall be the percentage change, rounded to the nearest one-thousandth of 1 percent, from October of the prior fiscal year to October of the current fiscal year in the California Consumer Price Index for all items, as determined by the California  Department of Industrial Relations.
(D) The percentage increase for an assessment year determined pursuant to subparagraph (A), (B), or (C) shall not exceed 2 percent of the prior year’s value.
(D) (E)  In (i)   no event shall  Notwithstanding any other law, for any assessment year commencing on or after January 1, 2020, and before January 1, 2030,  the percentage increase for any an  assessment year determined pursuant to subparagraph (A), (B), or (C) exceed 2 percent of the prior year’s value. shall not apply to the principal place of residence, including so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, of a qualified veteran who is 65 years of age or older on the lien date and was honorably discharged from military service. 
(ii) For the purpose of this subparagraph, “qualified veteran” means a person who meets the following criteria:
(I) The person meets the criteria specified in subdivision (o) of Section 3 of Article XIII of the California Constitution, except for the limitation on the value of property owned by the veteran or the veteran’s spouse.
(II) If the qualified veteran is single, the qualified veteran’s annual income, as defined in Section 20503, is less than fifty thousand dollars ($50,000).
(III) If the qualified veteran is married, the qualified veteran’s annual household income, as defined in Section 20504, is less than one hundred thousand dollars ($100,000).
(iii) When claiming the benefit provided by this subparagraph, the claimant shall provide all information required by, and answer all questions contained in, an affidavit furnished by the assessor to determine that the claimant is a qualified veteran. The assessor may require additional proof of the information or answers provided in the affidavit before allowing the benefit provided by this subparagraph.
(2) Its full cash value, as defined in Section 110, as of the lien date, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or other factors causing a decline in value.
(b) If the real property was damaged or destroyed by disaster, misfortune, or calamity and the board of supervisors of the county in which the real property is located has not adopted an ordinance pursuant to Section 170, or any portion of the real property has been removed by voluntary action by the taxpayer, the taxable value of the property shall be the sum of the following:
(1) The lesser of its base year value of land determined under paragraph (1) of subdivision (a) or full cash value of land determined pursuant to paragraph (2) of subdivision (a).
(2) The lesser of its base year value of improvements determined pursuant to paragraph (1) of subdivision (a) or the full cash value of improvements determined pursuant to paragraph (2) of subdivision (a).
In applying this subdivision, the base year value of the subject real property does not include that portion of the previous base year value of that property that was attributable to any portion of the property that has been destroyed or removed. The sum determined under this subdivision shall then become the base year value of the real property until that property is restored, repaired, or reconstructed or other provisions of law require establishment of a new base year value.
(c) If the real property was damaged or destroyed by disaster, misfortune misfortune,  or calamity and the board of supervisors in the county in which the real property is located has adopted an ordinance pursuant to Section 170, the taxable value of the real property shall be its assessed value as computed pursuant to Section 170.
(d) For purposes of this section, “real property” means that appraisal unit that persons in the marketplace commonly buy and sell as a unit, or that is normally valued separately.
(e) Nothing in this section shall be construed to require the assessor to make an annual reappraisal of all assessable property. However, for each lien date after the first lien date for which the taxable value of property is reduced pursuant to paragraph (2) of subdivision (a), the value of that property shall be annually reappraised at its full cash value as defined in Section 110 until that value exceeds the value determined pursuant to paragraph (1) of subdivision (a). In no event shall the assessor condition the implementation of the preceding sentence in any year upon the filing of an assessment appeal.
(f) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

SEC. 2.

 Section 51 is added to the Revenue and Taxation Code, to read:

51.
 (a) For purposes of subdivision (b) of Section 2 of Article XIII   A of the California Constitution, for each lien date after the lien date in which the base year value is determined pursuant to Section 110.1, the taxable value of real property shall, except as otherwise provided in subdivision (b) or (c), be the lesser of:
(1) Its base year value, compounded annually since the base year by an inflation factor, which shall be determined as follows:
(A) For any assessment year commencing prior to January 1, 1985, the inflation factor shall be the percentage change in the cost of living, as defined in Section 2212.
(B) For any assessment year commencing after January 1, 1985, and prior to January 1, 1998, the inflation factor shall be the percentage change, rounded to the nearest one-thousandth of 1 percent, from December of the prior fiscal year to December of the current fiscal year in the California Consumer Price Index for all items, as determined by the Department of Industrial Relations.
(C) For any assessment year commencing on or after January 1, 1998, the inflation factor shall be the percentage change, rounded to the nearest one-thousandth of 1 percent, from October of the prior fiscal year to October of the current fiscal year in the California Consumer Price Index for all items, as determined by the Department of Industrial Relations.
(D) In no event shall the percentage increase for any assessment year determined pursuant to subparagraph (A), (B), or (C) exceed 2 percent of the prior year’s value.
(2) Its full cash value, as defined in Section 110, as of the lien date, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or other factors causing a decline in value.
(b) If the real property was damaged or destroyed by disaster, misfortune, or calamity and the board of supervisors of the county in which the real property is located has not adopted an ordinance pursuant to Section 170, or any portion of the real property has been removed by voluntary action by the taxpayer, the taxable value of the property shall be the sum of the following:
(1) The lesser of its base year value of land determined under paragraph (1) of subdivision (a) or full cash value of land determined pursuant to paragraph (2) of subdivision (a).
(2) The lesser of its base year value of improvements determined pursuant to paragraph (1) of subdivision (a) or the full cash value of improvements determined pursuant to paragraph (2) of subdivision (a).
In applying this subdivision, the base year value of the subject real property does not include that portion of the previous base year value of that property that was attributable to any portion of the property that has been destroyed or removed. The sum determined under this subdivision shall then become the base year value of the real property until that property is restored, repaired, or reconstructed or other provisions of law require establishment of a new base year value.
(c) If the real property was damaged or destroyed by disaster, misfortune, or calamity and the board of supervisors in the county in which the real property is located has adopted an ordinance pursuant to Section 170, the taxable value of the real property shall be its assessed value as computed pursuant to Section 170.
(d) For purposes of this section, “real property” means that appraisal unit that persons in the marketplace commonly buy and sell as a unit, or that is normally valued separately.
(e) Nothing in this section shall be construed to require the assessor to make an annual reappraisal of all assessable property. However, for each lien date after the first lien date for which the taxable value of property is reduced pursuant to paragraph (2) of subdivision (a), the value of that property shall be annually reappraised at its full cash value as defined in Section 110 until that value exceeds the value determined pursuant to paragraph (1) of subdivision (a). In no event shall the assessor condition the implementation of the preceding sentence in any year upon the filing of an assessment appeal.
(f) This section shall become operative on January 1, 2030.

SEC. 2.SEC. 3.

 Section 5813 of the Revenue and Taxation Code is amended to read:

5813.
 (a)  For each lien date after the lien date for which the base year value is determined, the taxable value of a manufactured home shall be the lesser of:
(a) (1)  Its base year value, compounded annually since the base year by an inflation factor, which shall be the percentage change in the cost of living, as defined in Section 51, provided, provided  that any percentage increase shall not exceed 2 percent of the prior year’s value; or value. 
(b) (2)  Its full cash value, as defined in Section 5803, as of the lien date, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, or other factors causing a decline in value; or value. 
(c) (3)  If the manufactured home is damaged or destroyed by disaster, misfortune, or calamity, its value determined pursuant to (b)  paragraph (2)  shall be its base year value until the manufactured home is restored, repaired repaired,  or reconstructed or other provisions of law require establishment of a new base year value.
(b) (1) Notwithstanding any other law, for any assessment year commencing on or after January 1, 2020, and before January 1, 2030, the percentage increase for an assessment year determined pursuant to paragraph (1) of subdivision (a) shall not apply to the principal place of residence of a qualified veteran who owns a manufactured home as their principal place of residence and who is 65 years of age or older on the lien date and was honorably discharged from military service.
(2)  For the purpose of this subdivision, “qualified veteran” means a person who meets the following criteria:
(A) The person meets the criteria specified in subdivision (o) of Section 3 of Article XIII of the California Constitution, except for the limitation on the value of property owned by the veteran or the veteran’s spouse.
(B) If the qualified veteran is single, the qualified veteran’s annual income, as defined in Section 20503, is fifty thousand dollars ($50,000) or less.
(C) If the qualified veteran is married, the qualified veteran’s household income, as defined in Section 20504, is one hundred thousand dollars ($100,000) or less.
(3) When claiming the benefit provided by this subdivision, the claimant shall provide all information required by, and answer all questions contained in, an affidavit furnished by the assessor to determine that the claimant is a qualified veteran. The assessor may require additional proof of the information or answers provided in the affidavit before allowing the benefit provided by this subdivision.
(c) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

SEC. 4.

 Section 5813 is added to the Revenue and Taxation Code, to read:

5813.
 For each lien date after the lien date for which the base year value is determined, the taxable value of a manufactured home shall be the lesser of:
(a) Its base year value, compounded annually since the base year by an inflation factor, which shall be the percentage change in the cost of living, as defined in Section 51, provided that any percentage increase shall not exceed 2 percent of the prior value.
(b) Its full cash value, as defined in Section 5803, as of the lien date, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, or other factors causing a decline in value.
(c) If the manufactured home is damaged or destroyed by disaster, misfortune, or calamity, its value determined pursuant to subdivision (b) shall be its base year value until the manufactured home is restored, repaired, or reconstructed or other provisions of law require establishment of a new base year value.
(d) This section shall become operative on January 1, 2030.
SEC. 5.
 It is the intent of the Legislature to apply the requirements of Section 41 of the Revenue and Taxation Code to this act. Therefore, the Legislature finds and declares all of the following with respect to Section 1 of this act amending Section 51 of the Revenue and Taxation Code and Section 3 of this act amending Section 5813 of the Revenue and Taxation Code:
(a) The specific goals, purposes, and objectives that the tax benefits allowed by subparagraph (E) of paragraph (1) of subdivision (a) of Section 51 of the Revenue and Taxation Code, as amended by Section 1 of this act, and subdivision (b) of Section 5813 of the Revenue and Taxation Code, as amended by Section 3 of this act, will achieve are as follows:
(1) Reducing the cost of housing for senior and disabled veterans.
(2) Reducing senior and disabled veteran homelessness.
(b) Detailed performance indicators for the Legislature to use in determining whether the tax benefits allowed by subparagraph (E) of paragraph (1) of subdivision (a) of Section 51 of the Revenue and Taxation Code, as amended by Section 1 of this act, and subdivision (b) of Section 5813 of the Revenue and Taxation Code, as amended by Section 3 of this act, meet the goals, purposes, and objectives described in subdivision (a) are as follows:
(1) The number of properties receiving the tax benefits.
(2) The assessed value of property claiming the tax benefits.
(c) The State Board of Equalization shall, on an annual basis beginning January 1, 2021, and until January 1, 2031, review the effectiveness of the tax benefits allowed by subparagraph (E) of paragraph (1) of subdivision (a) of Section 51 of the Revenue and Taxation Code, as amended by Section 1 of this act, and subdivision (b) of Section 5813 of the Revenue and Taxation Code, as amended by Section 3 of this act. The review shall include, but not be limited to, an analysis of the demand for the tax benefits, the economic impact of the tax benefits, and the performance indicators described in subdivision (b). The State Board of Equalization shall submit a report of their review to the Legislature in compliance with Section 9795 of the Government Code. Any individually identifiable information collected pursuant to subdivision (d) that is used in the report shall be compiled in an aggregate or anonymized manner to preserve confidentiality.
(d) The data collection requirements for determining whether the tax benefits allowed by subparagraph (E) of paragraph (1) of subdivision (a) of Section 51 of the Revenue and Taxation Code, as amended by Section 1 of this act, and subdivision (b) of Section 5813 of the Revenue and Taxation Code, as amended by Section 3 of this act, are meeting, failing to meet, or exceeding the goals, purposes, and objectives described in subdivision (a) are as follows:
(1) To assist the Legislature in determining whether the tax benefits allowed by subparagraph (E) of paragraph (1) of subdivision (a) of Section 51 of the Revenue and Taxation Code, as amended by Section 1 of this act, and subdivision (b) of Section 5813 of the Revenue and Taxation Code, as amended by Section 3 of this act, meet the goals, purposes, and objectives described in subdivision (a), and in carrying out their duties under subdivision (c), the State Board of Equalization may request information from each county assessor.
(2) Each county assessor shall provide any data requested by the State Board of Equalization pursuant to this subdivision.
SEC. 6.
 Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
SEC. 7.
 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 8.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.