Compare Versions


Bill PDF |Add To My Favorites | print page

SCA-4 The California Home Fairness and Primary Residence Act.(2019-2020)



Current Version: 02/25/19 - Introduced

Compare Versions information image


SCA4:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Constitutional Amendment
No. 4

Introduced by Senator Galgiani

February 25, 2019

A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 2 of Article XIII   A thereof, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


SCA 4, as introduced, Galgiani. The California Home Fairness and Primary Residence Act.
(1) 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. The California Constitution specifies various transfers that are not deemed to be a “purchase” or “change in ownership” of a property for these purposes, including the purchase or transfer of a principal residence and the first $1,000,000 of the value of other real property between parents and their children and between grandparents and their grandchild or grandchildren, as provided.
This measure, on and after January 1, 2021, would limit the exclusion for the purchase or transfer of a principal residence between parents and their children and between grandparents and their grandchild or grandchildren to instances in which the residence continues as the principal residence of the transferee. The measure would prescribe the method for calculating the new base year value of the principal residence of the transferee. The measure, commencing January 1, 2022, and each January 1 thereafter, would require the county assessor to adjust the amount of the exclusion, as specified. The measure would also delete the latter exclusion for the purchase or transfer of the first $1,000,000 of the full cash value of all other real property, thereby requiring these properties to be reassessed upon a purchase or transfer between parents and their children and between grandparents and their grandchild or grandchildren.
(2) The California Constitution authorizes the Legislature to provide that a severely disabled person and a person over 55 years of age may transfer the base year value, as defined, of property that is eligible for the homeowner’s property tax exemption to a replacement dwelling that is of equal or lesser value located within the same county as the property from which the base year value is transferred, and, if a county ordinance so providing has been adopted, to a replacement dwelling that is located in a different county.
This measure, on and after January 1, 2021, would instead require the base year value of property eligible for the homeowner’s exemption of any person who is severely disabled or over 55 years of age to be transferred to any replacement dwelling, regardless of the number of prior transfers or the value of the replacement property or whether the replacement property is located within the same county. The measure would also prescribe the method for calculating the base year value of a replacement dwelling that is of lesser or greater value than the original property.
(3) The California Constitution requires the Legislature to provide for the transfer of base year value, in the case of property that is substantially damaged or destroyed, as defined, by a disaster, as declared by the Governor, to a comparable property within the same county, as specified.
This measure, on and after January 1, 2021, would instead require the transfer of the base year value of a property that is substantially damaged or destroyed to any replacement property, regardless of whether that replacement property is comparable, as specified, or whether the replacement property is located within the same county. The measure would also prescribe the method for calculating the base year value of replacement property that is of lesser or greater value than the original property.
(4) The California Constitution requires the Legislature, with respect to a qualified contaminated property, as defined, to provide that either (A) the qualified contaminated property may have its base year value transferred to a replacement property that is of equal or lesser value within the same county or, if a county ordinance so providing has been adopted, in another county, or (B) repairs to a substantially damaged structure, or construction replacing a destroyed structure, as a result of the remediation of environmental problems on the qualified contaminated property, does not constitute “new construction,” if it is similar in size, utility, and function to the original structure.
With respect to the transfer of the base year value to a replacement property under these provisions, this measure, on and after January 1, 2021, would instead require the transfer of the base year value of qualified contaminated property to any replacement property, regardless of whether the replacement real property is of equal or lesser value than the qualified contaminated property or whether the replacement property is located within the same county. The measure would also prescribe the method for calculating the base year value of replacement property that is of lesser or greater value then the original property.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  
WHEREAS, It is the intent of the people in enacting this measure, and of the Legislature in proposing this measure, that the property tax revenue gains from reforms to the intergenerational transfer laws offset the revenue losses from expanding property tax base portability, and to find a method to eliminate any disparity among the counties in tax revenue gains or losses, as needed; and
WHEREAS, California voters have repeatedly and overwhelmingly declared the importance of making property taxes manageable for all homeowners and providing equal access to property tax savings for all homeowners, specifically ensuring that property taxes are manageable for homeowners residing in their primary residence; and
WHEREAS, California’s property tax protections are equally available to all homeowners for their primary residences. In addition, voters have overwhelmingly passed Propositions 60, 90, and 110 to allow:
(a) All homeowners, once they reach the age of 55, the ability to sell their primary residence which may no longer meet their needs, and move to a new primary residence without a spike in property taxes or paying a moving penalty.
(b) Create housing availability and opportunities for first-time homeowners and families to purchase homes that would otherwise not be on the market and become available when those over 55 years of age look to downsize, move to a condo or senior community, or relocate to be closer to their families, possibly to provide daycare, or to medical facilities, or to a home that better meets their needs.
WHEREAS, While California’s property tax protections provide stability and financial manageability for millions of homeowners in their primary residences, a tax loophole exists under California law providing massive tax breaks worth billions of dollars to certain property owners on their vacation houses, second homes, luxury rentals, beachfront estates, and investment properties; and
WHEREAS, Additionally, certain unfair restrictions exist that prevent homeowners 55 years of age or older from selling their home and moving to a home that better fits their needs. Almost three-quarters of senior homeowners have not moved since 2000 and one-half have been in their homes for at least 25 years. Millions of seniors, retirees, and older Californians are living in homes that do not meet their needs, whether too big, too many steps or stairs, or too far away from their family and loved ones or medical facilities, but they cannot afford to move because their property taxes would skyrocket if they did. These restrictions include the location of the new home, the price of the new home, and the number of times they have moved; and
WHEREAS, At the same time, California’s housing shortage and limited inventory drive up housing costs. If seniors, retirees, and all Californians, once they reach the age of 55, have the freedom to move to another part of the state or sell their home and move into a condominium, senior living community, or another house regardless of the value of their current home, then thousands of single-family homes in all parts of the state would become available for families and first-time homebuyers; and
WHEREAS, It is the intent of the people in enacting, and of the Legislature in proposing, “the California Home Fairness and Primary Residence Act” to do all of the following:
(a) End special tax breaks used for vacation houses, luxury investment properties, rentals, second homes, and beachfront estates that have benefited the wealthiest Californians.
(b) Close tax loopholes to ensure that everyone has access to the same property tax limits when they purchase or sell their home.
(c) Keep more retirees and seniors here in California instead of moving out of state by giving all seniors, disabled persons, and victims of disaster the right to move anywhere in California without penalty or restriction.
(d) Open up new housing opportunities for first-time homeowners and middle class and working families.
(e) Eliminate sudden tax hikes, tax penalties, and moving challenges impacting disabled persons, victims of disaster, retirees, and homeowners aged 55 and older; now, therefore, be it
Resolved by the Senate, the Assembly concurring, That the Legislature of the State of California at its 2019–20 Regular Session commencing on the third day of December 2018, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:

First—

 That this measure shall be known and may be cited as the California Home Fairness and Primary Residence Act.

Second—

 That Section 2 of Article XIII A thereof is amended to read:

SEC. 2.
 (a) The “full (1) On and after January 1, 2021, for purposes of subdivision (b), the terms “purchased” and “change in ownership” do not include the purchase or transfer of the principal residence of the transferor in the case of a purchase or transfer between parents and their children, as defined by the Legislature, if the residence continues as the principal residence of the transferee. This subdivision applies to both voluntary transfers and transfers resulting from a court order or judicial decree. The new base year value of the principal residence of the transferee shall be the sum of both of the following:
(A) The base year value of the principal residence, as adjusted as authorized by subdivision (c), determined as of the date immediately prior to the date of purchase by, or transfer to, the transferee.
(B) The applicable of the following amounts:
(i) If the reassessed value of the principal residence upon purchase by, or transfer to, the transferee is less than the sum of the base year value described in subparagraph (A) plus one million dollars ($1,000,000), zero dollars ($0).
(ii) If the reassessed value of the principal residence upon purchase by, or transfer to, the transferee is equal to or more than the sum of the base year value described in subparagraph (A) plus one million dollars ($1,000,000), an amount that is equal to the reassessed value of the principal residence upon purchase by, or transfer to, the transferee minus the sum of the base year value described in subparagraph (A) plus one million dollars ($1,000,000).
(2) On and after March 27, 1996, paragraph (1) also applies to a purchase or transfer of real property between grandparents and their grandchild or grandchildren, as defined by the Legislature, that otherwise qualifies under paragraph (1), if all of the parents of that grandchild or those grandchildren, who qualify as the children of the grandparents, are deceased as of the date of the purchase or transfer.
(3) Commencing January 1, 2022, and each January 1 thereafter, the assessor shall adjust each exclusion amount under paragraph (1) for the prior fiscal year for a principal residence of a transferee by the percentage change, rounded to the nearest one-thousandth of 1 percent, in the House Price Index for California for the first three quarters of the prior calendar year, as determined by the Federal Housing Finance Agency.
(b) (1) The “full cash value” means the county assessor’s valuation of real property as shown on the 1975–76 tax bill under “full cash value” or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. All real property not already assessed up to the 1975–76 full cash value may be reassessed to reflect that valuation. For purposes of this section, “newly constructed” does not include real property that is reconstructed after a disaster, as declared by the Governor, where the fair market value of the real property, as reconstructed, is comparable to its fair market value prior to the disaster. For purposes of this section, the term “newly constructed” does not include that portion of an existing structure that consists of the construction or reconstruction of seismic retrofitting components, as defined by the Legislature.

However, the

(2) (A) On and after November 5, 1986, and until January 1, 2021, the Legislature may provide that, under appropriate circumstances and pursuant to definitions and procedures established by the Legislature, any person over the age of 55 years who resides in property that is eligible for the homeowner’s exemption under subdivision (k) of Section 3 of Article XIII and any implementing legislation may transfer the base year value of the property entitled to exemption, with the adjustments authorized by subdivision (b), (c), to any replacement dwelling of equal or lesser value located within the same county and purchased or newly constructed by that person as his or her that person’s principal residence within two years of the sale of the original property. For
(B) This paragraph shall apply to any replacement dwelling that was purchased or newly constructed on or after November 5, 1986.
(3) For purposes of this section, the following definitions shall apply: “any
(A) “Any person over the age of 55 years” includes a married couple couple, one member of which is over the age of 55 years. For purposes of this section, “replacement
(B) “Replacement dwelling” means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, and any land on which it may be situated. For purposes of this section, a two-dwelling unit shall be considered as two separate single-family dwellings. This paragraph shall apply to any replacement dwelling that was purchased or newly constructed on or after November 5, 1986.

In addition, the

(4) On and after November 9, 1988, and until January 1, 2021, the Legislature may authorize each county board of supervisors, after consultation with the local affected agencies within the county’s boundaries, to adopt an ordinance making the provisions of this subdivision relating to transfer of base year value also applicable to situations in which the replacement dwellings are located in that county and the original properties are located in another county within this State. For purposes of this paragraph, “local affected agency” means any city, special district, school district, or community college district that receives an annual property tax revenue allocation. This paragraph applies to any replacement dwelling that was purchased or newly constructed on or after the date the county adopted the provisions of this subdivision relating to transfer of base year value, but does not apply to any replacement dwelling that was purchased or newly constructed before November 9, 1988.

The Legislature

(5) On and after June 6, 1990, and until January 1, 2021, the Legislature may extend the provisions of this subdivision relating to the transfer of base year values from original properties to replacement dwellings of homeowners over the age of 55 years to severely disabled homeowners, but only with respect to those replacement dwellings purchased or newly constructed on or after the effective date of this paragraph.
(6) (A) On and after January 1, 2021, subject to applicable procedures and definitions as provided by statute, the base year value of property that is eligible for the homeowner’s exemption under subdivision (k) of Section 3 of Article XIII of any person over 55 years of age or any severely disabled homeowner shall be transferred to any replacement dwelling, regardless of the number of prior transfers or the value of the replacement dwelling or whether the replacement dwelling is located within the same county, that is purchased or newly constructed by that person as that person’s principal residence within two years of the sale of the original property.
(B) For purposes of this paragraph, the following shall apply:
(i) For any replacement dwelling of greater value and purchased or newly constructed by a person eligible to transfer the base year value of that person’s original property, the base year value of the replacement dwelling shall be calculated by adding the difference between the full cash value of the original property and the full cash value of the replacement dwelling to the base year value of the original property.
(ii) For any replacement dwelling of equal or lesser value purchased or newly constructed by a person eligible to transfer the base year value of that person’s original property, the base year value of the replacement dwelling shall be calculated by dividing the base year value of the original property by the full cash value of the replacement property, and multiplying the result by the full cash value of the replacement dwelling.

(b)

(c) The full cash value base may reflect from year to year the inflationary rate not to exceed 2 percent for any given year or reduction as shown in the consumer price index or comparable data for the area under taxing jurisdiction, or may be reduced to reflect substantial damage, destruction, or other factors causing a decline in value.

(c)

(d) For purposes of subdivision (a), (b), the Legislature may provide that the term “newly constructed” does not include any of the following:
(1) The construction or addition of any active solar energy system.
(2) The construction or installation of any fire sprinkler system, other fire extinguishing system, fire detection system, or fire-related egress improvement, as defined by the Legislature, that is constructed or installed after the effective date of this paragraph.
(3) The construction, installation, or modification on or after the effective date of this paragraph of any portion or structural component of a single- or multiple-family dwelling that is eligible for the homeowner’s exemption if the construction, installation, or modification is for the purpose of making the dwelling more accessible to a severely disabled person.
(4) The construction, installation, removal, or modification on or after the effective date of this paragraph of any portion or structural component of an existing building or structure if the construction, installation, removal, or modification is for the purpose of making the building more accessible to, or more usable by, a disabled person.
(5) The construction or addition, completed on or after January 1, 2019, of a rain water capture system, as defined by the Legislature.

(d)

(e) For purposes of this section, the term “change in ownership” does not include the acquisition of real property as a replacement for comparable property if the person acquiring the real property has been displaced from the property replaced by eminent domain proceedings, by acquisition by a public entity, or governmental action that has resulted in a judgment of inverse condemnation. The real property acquired shall be deemed comparable to the property replaced if it is similar in size, utility, and function, or if it conforms to state regulations defined by the Legislature governing the relocation of persons displaced by governmental actions. This subdivision applies to any property acquired after March 1, 1975, but affects only those assessments of that property that occur after the provisions of this subdivision take effect.

(e)

(f) (1) (A) Notwithstanding any other provision of this section, the Legislature shall provide that the base year value of property that is substantially damaged or destroyed by a disaster, as declared by the Governor, may be transferred to comparable property within the same county that is acquired or newly constructed as a replacement for the substantially damaged or destroyed property.

(2)

(B) Except as provided in paragraph (3), this subdivision subparagraph (C), this paragraph applies to any comparable replacement property acquired or newly constructed on or after July 1, 1985, and until January 1, 2021, and to the determination of base year values for the 1985–86 fiscal year and fiscal years thereafter. thereafter until the 2021–22 fiscal year.

(3)

(C) (i) In addition to the transfer of base year value of property within the same county that is permitted by paragraph (1), subparagraph (A), the Legislature may authorize each county board of supervisors to adopt, after consultation with affected local agencies within the county, an ordinance allowing the transfer of the base year value of property that is located within another county in the State and is substantially damaged or destroyed by a disaster, as declared by the Governor, to comparable replacement property of equal or lesser value that is located within the adopting county and is acquired or newly constructed within three years of the substantial damage or destruction of the original property as a replacement for that property. The scope and amount of the benefit provided to a property owner by the transfer of base year value of property pursuant to this paragraph shall not exceed the scope and amount of the benefit provided to a property owner by the transfer of base year value of property pursuant to subdivision (a). (b). For purposes of this paragraph, subparagraph, “affected local agency” means any city, special district, school district, or community college district that receives an annual allocation of ad valorem property tax revenues. This paragraph
(ii) This subparagraph applies to any comparable replacement property that is acquired or newly constructed as a replacement for property substantially damaged or destroyed by a disaster, as declared by the Governor, occurring on or after October 20, 1991, and before January 1, 2021, and to the determination of base year values for the 1991–92 fiscal year and fiscal years thereafter. thereafter until the 2021–22 fiscal year.
(2) (A) Notwithstanding any other provision of this section, on and after January 1, 2021, the base year value of property that is substantially damaged or destroyed by a disaster, as declared by the Governor, shall be transferred to any property that is acquired or newly constructed as a replacement for the substantially damaged or destroyed property, regardless of whether that replacement property is comparable, as specified in paragraph (2) of subdivision (g), or whether the replacement property is located within the same county.
(B) For purposes of this paragraph, the following shall apply:
(i) For any replacement property of greater value and purchased or newly constructed by a person eligible to transfer the base year value of that person’s original property, the base year value of the replacement property shall be calculated by adding the difference between the full cash value of the original property and the full cash value of the replacement property to the base year value of the original property.
(ii) For any replacement property of equal or lesser value purchased or newly constructed by a person eligible to transfer the base year value of that person’s original property, the base year value of the replacement property shall be calculated by dividing the base year value of the original property by the full cash value of the replacement property, and multiplying the result by the full cash value of the replacement property.

(f)

(g) For the purposes of subdivision (e): (f):
(1) Property is substantially damaged or destroyed if it sustains physical damage amounting to more than 50 percent of its value immediately before the disaster. Damage includes a diminution in the value of property as a result of restricted access caused by the disaster.
(2) Replacement property is comparable to the property substantially damaged or destroyed if it is similar in size, utility, and function to the property that it replaces, and if the fair market value of the acquired property is comparable to the fair market value of the replaced property prior to the disaster.

(g)

(h) For purposes of subdivision (a), (b), the terms “purchased” and “change in ownership” do not include the purchase or transfer of real property between spouses since March 1, 1975, including, but not limited to, all of the following:
(1) Transfers to a trustee for the beneficial use of a spouse, or the surviving spouse of a deceased transferor, or by a trustee of such a trust to the spouse of the trustor.
(2) Transfers to a spouse that take effect upon the death of a spouse.
(3) Transfers to a spouse or former spouse in connection with a property settlement agreement or decree of dissolution of a marriage or legal separation.
(4) The creation, transfer, or termination, solely between spouses, of any coowner’s interest.
(5) The distribution of a legal entity’s property to a spouse or former spouse in exchange for the interest of the spouse in the legal entity in connection with a property settlement agreement or a decree of dissolution of a marriage or legal separation.

(h)(1)For purposes of subdivision (a), the terms “purchased” and “change in ownership” do not include the purchase or transfer of the principal residence of the transferor in the case of a purchase or transfer between parents and their children, as defined by the Legislature, and the purchase or transfer of the first one million dollars ($1,000,000) of the full cash value of all other real property between parents and their children, as defined by the Legislature. This subdivision applies to both voluntary transfers and transfers resulting from a court order or judicial decree.

(2)(A)Subject to subparagraph (B), commencing with purchases or transfers that occur on or after the date upon which the measure adding this paragraph becomes effective, the exclusion established by paragraph (1) also applies to a purchase or transfer of real property between grandparents and their grandchild or grandchildren, as defined by the Legislature, that otherwise qualifies under paragraph (1), if all of the parents of that grandchild or those grandchildren, who qualify as the children of the grandparents, are deceased as of the date of the purchase or transfer.

(B)A purchase or transfer of a principal residence shall not be excluded pursuant to subparagraph (A) if the transferee grandchild or grandchildren also received a principal residence, or interest therein, through another purchase or transfer that was excludable pursuant to paragraph (1). The full cash value of any real property, other than a principal residence, that was transferred to the grandchild or grandchildren pursuant to a purchase or transfer that was excludable pursuant to paragraph (1), and the full cash value of a principal residence that fails to qualify for exclusion as a result of the preceding sentence, shall be included in applying, for purposes of subparagraph (A), the one-million-dollar ($1,000,000) full cash value limit specified in paragraph (1).

(i) (1) Notwithstanding any other provision of this section, except as otherwise provided in paragraph (5), on and after January 1, 1995, and until January 1, 2021, the Legislature shall provide with respect to a qualified contaminated property, as defined in paragraph (2), that either, but not both, of the following apply:
(A) (i) Subject to the limitation of clause (ii), the base year value of the qualified contaminated property, as adjusted as authorized by subdivision (b), (c) may be transferred to a replacement property that is acquired or newly constructed as a replacement for the qualified contaminated property, if the replacement real property has a fair market value that is equal to or less than the fair market value of the qualified contaminated property if that property were not contaminated and, except as otherwise provided by this clause, is located within the same county. The base year value of the qualified contaminated property may be transferred to a replacement real property located within another county if the board of supervisors of that other county has, after consultation with the affected local agencies within that county, adopted a resolution authorizing an intercounty transfer of base year value as so described.
(ii) This subparagraph applies only to replacement property that is acquired or newly constructed within five years after ownership in the qualified contaminated property is sold or otherwise transferred.
(B) In the case in which the remediation of the environmental problems on the qualified contaminated property requires the destruction of, or results in substantial damage to, a structure located on that property, the term “new construction” does not include the repair of a substantially damaged structure, or the construction of a structure replacing a destroyed structure on the qualified contaminated property, performed after the remediation of the environmental problems on that property, provided that the repaired or replacement structure is similar in size, utility, and function to the original structure.
(2) For purposes of this subdivision, “qualified contaminated property” means residential or nonresidential real property that is all of the following:
(A) In the case of residential real property, rendered uninhabitable, and in the case of nonresidential real property, rendered unusable, as the result of either environmental problems, in the nature of and including, but not limited to, the presence of toxic or hazardous materials, or the remediation of those environmental problems, except where the existence of the environmental problems was known to the owner, or to a related individual or entity as described in paragraph (3), at the time the real property was acquired or constructed. For purposes of this subparagraph, residential real property is “uninhabitable” if that property, as a result of health hazards caused by or associated with the environmental problems, is unfit for human habitation, and nonresidential real property is “unusable” if that property, as a result of health hazards caused by or associated with the environmental problems, is unhealthy and unsuitable for occupancy.
(B) Located on a site that has been designated as a toxic or environmental hazard or as an environmental cleanup site by an agency of the State of California or the federal government.
(C) Real property that contains a structure or structures thereon prior to the completion of environmental cleanup activities, and that structure or structures are substantially damaged or destroyed as a result of those environmental cleanup activities.
(D) Stipulated by the lead governmental agency, with respect to the environmental problems or environmental cleanup of the real property, not to have been rendered uninhabitable or unusable, as applicable, as described in subparagraph (A), by any act or omission in which an owner of that real property participated or acquiesced.
(3) It shall be rebuttably presumed that an owner of the real property participated or acquiesced in any act or omission that rendered the real property uninhabitable or unusable, as applicable, if that owner is related to any individual or entity that committed that act or omission in any of the following ways:
(A) Is a spouse, parent, child, grandparent, grandchild, or sibling of that individual.
(B) Is a corporate parent, subsidiary, or affiliate of that entity.
(C) Is an owner of, or has control of, that entity.
(D) Is owned or controlled by that entity.
If this presumption is not overcome, the owner shall not receive the relief provided for in subparagraph (A) or (B) of paragraph (1). The presumption may be overcome by presentation of satisfactory evidence to the assessor, who shall not be bound by the findings of the lead governmental agency in determining whether the presumption has been overcome.
(4) This subdivision applies only to replacement property that is acquired or constructed on or after January 1, 1995, and to property repairs performed on or after that date.
(5) (A) Notwithstanding any other provision of this section, on and after January 1, 2021, and subject to the limitation of clause (ii) of subparagraph (A) of paragraph (1), the base year value of the qualified contaminated property shall be transferred to a replacement property that is acquired or newly constructed as a replacement for the qualified contaminated property, regardless of whether the replacement real property has a fair market value that is equal to or less than the fair market value of the qualified contaminated property if that property were not contaminated or whether the replacement property is located within the same county.
(B) For purposes of this paragraph, the following shall apply:
(i) For any replacement property of greater value and purchased or newly constructed by a person eligible to transfer the base year value of that person’s original property pursuant to this clause, the base year value of the replacement property shall be calculated by adding the difference between the full cash value of the original property and the full cash value of the replacement property to the base year value of the original property.
(ii) For any replacement property of equal or lesser value purchased or newly constructed by a person eligible to transfer the base year value of that person’s original property pursuant to this clause, the base year value of the replacement property shall be calculated by dividing the base year value of the original property by the full cash value of the replacement property, and multiplying the result by the full cash value of the replacement property.
(j) Unless specifically provided otherwise, amendments to this section adopted prior to November 1, 1988, are effective for changes in ownership that occur, and new construction that is completed, after the effective date of the amendment. Unless specifically provided otherwise, amendments to this section adopted after November 1, 1988, are effective for changes in ownership that occur, and new construction that is completed, on or after the effective date of the amendment.