AB 2014

Bill Subjects

Abstract

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. Existing property tax law specifies those circumstances in which the transfer of ownership interests in a corporation, partnership, limited liability company, or other legal entity results in a change in ownership of the real property owned by that entity, and generally provides that a change in ownership as so described occurs when a legal entity or other person obtains a controlling or majority ownership interest in the legal entity. Existing law also specifies other circumstances in which certain transfers of ownership interests in legal entities result in a change in ownership of the real property owned by those legal entities. This bill would require the Legislature to convene a task force composed of specified citizens and officials, including, among others, 2 members who are county assessors, to update the work done by a task force in 1979 that provided recommendations to the Legislature regarding the definition of change of ownership described above for complex legal entities, as provided. This bill would require the task force to convene its first meeting on or before April 1, 2013, and to submit a report containing specified information to the Legislature within 7 months of the first task force meeting. By imposing new duties upon county assessors with respect to their service on the task force, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.