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AB-885 Property taxation: new construction: definition.(2019-2020)

Senate:
1st
Cmt
2nd
3rd
Pass
Assembly:
1st
Cmt
2nd
3rd
Pass
Pass
Veto
Bill Status
AB-885
Irwin (A)
-
Boerner Horvath (A) , Caballero (S) , Dodd (S) , Gabriel (A) , Maienschein (A) , Nielsen (S) , Petrie-Norris (A) , Smith (A) , Stern (S) , Wood (A)
Property taxation: new construction: definition.
03/23/19
An act to amend Section 70 of the Revenue and Taxation Code, relating to taxation.
Assembly
09/11/19
08/30/19

Type of Measure
Inactive Bill - Vetoed
Majority Vote Required
Non-Appropriation
Fiscal Committee
State-Mandated Local Program
Non-Urgency
Non-Tax levy
Last 5 History Actions
Date Action
10/13/19 Vetoed by Governor.
09/13/19 Enrolled and presented to the Governor at 3:30 p.m.
09/09/19 Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 3102.).
09/05/19 In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 7 pursuant to Assembly Rule 77.
09/04/19 Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2493.).
Governor's Veto Message
To the Members of the California State Assembly:

I am returning Assembly Bill 885 without my signature.

This bill creates a bright-line test to determine whether new construction after a misfortune or calamity is substantially equivalent to the replaced structure, and therefore precluded from reassessment for property tax purposes.

When a disaster destroys a home or structure, current law appropriately prohibits the rebuilding cost of that destroyed property from increasing the assessed value for property tax purposes, as long as the rebuilt home is substantially equivalent to the replaced structure. While I understand the intent of this bill is to provide uniformity across counties and to address instances where code standards require updates that may increase the value of the property, AB 885 goes too far.

Ensuring home and other property owners are not faced with additional property tax burdens following a disaster is important. Providing uniformity in this matter is also a laudable goal. However, the proposed bright-line test in AB 885 should be narrowed to address these issues in a manner that minimizes negative impacts on local revenues.

For these reasons, I cannot sign this bill.

Sincerely,





Gavin Newsom