SB 1431

Bill Subjects

Abstract

The California Constitution authorizes the Legislature to authorize local governments to provide for the assessment or reassessment of taxable property physically damaged or destroyed after the lien date to which the assessment or reassessment relates. Existing property tax law authorizes the board of supervisors of a county, by ordinance, to provide that every assessee of any taxable property, or any person liable for the taxes thereon, whose property was damaged or destroyed without their fault, may apply for reassessment of that property, as provided. Existing property tax law requires, for property to be eligible for reassessment under these provisions, that the damage or destruction be caused by one of 3 specified occurrences, including a major misfortune or calamity in an area or region subsequently proclaimed by the Governor to be in a state of disaster if the property was damaged or destroyed by the misfortune or calamity that caused the Governor to proclaim the region to be in a state of disaster. Existing property tax law generally requires that an application for reassessment be filed within the later of the time specified in the county's ordinance or within 12 months of the misfortune or calamity and be executed under penalty of perjury. This bill would expand these provisions to include damage to or destruction of property due to a misfortune or calamity in an area or region subsequently proclaimed by the Governor to be in a state of emergency if the property was damaged or destroyed by the misfortune or calamity that caused the Governor to proclaim the area to be in a state of emergency. The bill, for purposes of property damaged or destroyed by a major misfortune or calamity in area declared to be in a state of disaster, as described above, would specify that "damage" includes a diminution in the value of property as a result of any law, order, rule, or regulation of the state or any city, county, or other political subdivision providing tenant protections in response to the COVID-19 pandemic, as defined. The bill would also specify that the term "majority misfortune or calamity" includes the COVID-19 pandemic. The bill would make these provisions retroactive to April 5, 2020, and authorize a person to submit an application for reassessment in connection with the COVID-19 pandemic within the later of 12 months of the bill's effective date or the time specified in the county's ordinance. This bill would make findings and declarations regarding the public purpose served by the bill. By adding to the duties of local tax officials with respect to the assessment of property for taxation, and by expanding the scope of the crime of perjury, 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 with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. This bill would take effect immediately as a tax levy.