Property taxation: imposition and assessment: appeals.

Plain English Breakdown

The bill summary and digest do not provide specific details about how local officials will handle increased duties or potential unintended consequences from shortening decision-making times.

Property Tax Appeals: Changes to Rules and Fees

The bill changes rules about property tax appeals, including who can get help proving their case in court, how long local boards have to make decisions on applications for lower assessments, and removing fees for certain homes.

What This Bill Does

• Establishes a rebuttable presumption regarding the burden of proof in favor of taxpayers or assessors during administrative hearings involving residential real property.
• Defines 'residential real property' as any land with one or more units used or intended for human habitation, including single-family residences, condominiums, cooperative units, duplexes, and multifamily residential properties with fewer than 4 units.
• Prohibits local officials from charging fees for applications to reduce assessments on homes valued under $2.5 million.
• Reduces the time limit for county boards to make decisions on property assessment reduction requests from two years to six months.

Who It Names or Affects

• Taxpayers and assessors involved in property tax appeals.
• Local officials responsible for handling property tax assessments and reductions.
• Homeowners with properties valued under $2.5 million who apply to reduce their assessment.

Terms To Know

Residential real property

Land that has one or more units used or intended for human habitation, including single-family residences, condominiums, cooperative units, duplexes, and multifamily residential properties with fewer than 4 units.

Assessment reduction application

A request filed by a homeowner to lower the assessed value of their property for tax purposes.

Limits and Unknowns

• The bill does not specify how local officials will handle increased duties.
• It is unclear if there are any unintended consequences from shortening decision-making times for assessment reduction requests.

Official Summary Text

SB 1402, as introduced, Ochoa Bogh.
Property taxation: imposition and assessment: appeals.
(1) Existing property tax law, except as provided, establishes a rebuttable presumption regarding the burden of proof in favor of a taxpayer or assessee who has supplied the required information to the assessor in an administrative hearing involving, among other things, the imposition of a tax on, or an assessment of, an owner-occupied single-family dwelling, as defined.
This bill would, instead, establish a rebuttable presumption, as described above, in an administrative hearing involving, among other things, the imposition of a tax on, or assessment of, residential real property. The bill would define residential real property to mean real property improved with one or more units used or intended for human habitation, including single-family residences, condominiums, cooperative units, duplexes, and multifamily residential
property with fewer than 4 units, and any land and appurtenant improvements thereon.
(2) Existing property tax law prohibits a reduction in an assessment on the local roll from being made unless the party affected or the party’s agent makes and files with the county board a verified, written application showing the facts claimed to require the reduction and the applicant’s opinion of the full value of the property.
This bill would prohibit an assessor, tax collector, or auditor from charging or collecting a fee for that application for homes valued less than $2,500,000.
(3) Existing property tax law, subject to certain exceptions, makes the applicant’s opinion of value, as reflected on an application for reduction in assessment of property, the value upon which taxes are to be levied for the tax year or tax years covered by the
application if the county board fails to hear evidence and fails to make a final determination on the application within 2 years of the timely filing of the application.
This bill would reduce that time period to hear evidence and to make a final determination to within 6 months of the timely filing of the application. The bill would also make conforming changes.
Existing property tax law prohibits a reduction in assessment reflecting the applicant’s opinion of value from being made until 2 years after the close of the filing period during which the timely application was filed. Existing property law, notwithstanding the 2-year time period to hear evidence and make a final determination described above, or any other law, retroactively extends the 2-year deadline by which a county board is required to render a final determination on a qualified application, as defined, until December 31, 2021, as provided.
This bill would remove those provisions.
(4) By increasing the duties of local officials, this bill would impose a state-mandated local program.
(5) This bill would include findings that changes proposed by this bill address a matter of statewide concern and, therefore, apply to all counties, including charter counties.
(6) 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 no reimbursement is required by this act for a specified reason.

Current Bill Text

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