Robert M. Hertzberg
- Democratic
Author
The California Constitution generally limits the maximum rate of ad valorem tax on real property to 1% of the full cash value of the property and defines "full cash value" for these purposes as the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. Pursuant to constitutional authorization, existing property tax law excludes from the definition of "newly constructed" for these purposes the construction or addition of any active solar energy system, as defined, through the 2023–24 fiscal year. Under existing property tax law, this exclusion remains in effect only until there is a subsequent change in ownership, but an active solar energy system that qualifies for the exclusion before January 1, 2025, will continue to receive the exclusion until there is a subsequent change in ownership. This bill would provide that for a legal entity that owns an active solar energy system pursuant to a partnership flip transaction, as defined, neither an initial transfer of a capital and profits interest in the legal entity, nor any subsequent change in the allocation of the capital and profits of the legal entity among the members, shall be deemed to constitute a transfer of control of, or of a majority interest in, the legal entity. The bill would provide that if the parties to a partnership flip transaction sell or exchange ownership of the partnership or limited liability company in a transaction or series of transactions, that are separate and apart from the partnership flip transaction conducted pursuant to the bill's provisions, in such a manner that a change in ownership of the partnership or limited liability company occurs, as specified, then the bill's provisions do not apply to that transaction or transactions. The bill would make related findings and declarations. By adding to the duties of county assessors in applying this exclusion, the 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 the statutory provisions noted above. Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. This bill would take effect immediately as a tax levy.
Chaptered by Secretary of State. Chapter 424, Statutes of 2021.
Approved by the Governor.
Enrolled and presented to the Governor at 1 p.m.
Assembly amendments concurred in. (Ayes 33. Noes 4. Page 2351.) Ordered to engrossing and enrolling.
Read third time. Passed. (Ayes 72. Noes 1. Page 2601.) Ordered to the Senate.
In Senate. Concurrence in Assembly amendments pending.
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 13. Noes 0.) (August 26).
August 19 set for first hearing. Placed on suspense file.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 5). Re-referred to Com. on APPR.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
June 21 hearing postponed by committee.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 34. Noes 2. Page 714.) Ordered to the Assembly.
Read second time. Ordered to third reading.
From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
Set for hearing April 5.
March 22 hearing postponed by committee.
Set for hearing March 22.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 479.) (March 11). Re-referred to Com. on APPR.
Set for hearing March 11.
Art. IV. Sec. 8(a) of the Constitution dispensed with.
Joint Rule 55 suspended. (Ayes 32. Noes 4. Page 272.)
(Ayes 32. Noes 4.)
From printer. May be acted upon on or after February 28.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB267 | HTML |
| 01/28/21 - Introduced | |
| 06/24/21 - Amended Assembly | |
| 08/16/21 - Amended Assembly | |
| 09/07/21 - Enrolled | |
| 09/30/21 - Chaptered |
| Document | Format |
|---|---|
| 03/08/21- Senate Governance and Finance | |
| 04/07/21- Sen. Floor Analyses | |
| 07/01/21- Assembly Revenue and Taxation | |
| 08/16/21- Assembly Appropriations | |
| 08/31/21- ASSEMBLY FLOOR ANALYSIS | |
| 09/01/21- Sen. Floor Analyses |
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