HomeMy WebLinkAboutMINUTES - 03241992 - 1.32 TO: BOARD OF SUPERVISORS `'"� Contra
FROM: Phil Batchelor, County Administrator Costa
n.' s
County
DATE: March 18, 1992
SUBJECT: LEGISLATION: AB 2813 (Ferguson, et al)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Adopt a position in OPPOSITION to AB 2813 by Assemblymen Ferguson,
Frazee, Frizzelle and Mountjoy which would provide that, during
calendar year 1992, the change in base year value of any home for
which a change in ownership occurred during the year would not take
effect until one year after the conclusion of the purchase.
BACKGROUND:
Under current law, the full cash value of a property on which a
change of ownership has occurred is the fair market value of the
property on the date when the change in ownership occurred. This
is the value which is used to determine the property tax on the
property for purposes of the supplemental property tax roll and the
secured property tax roll .
AB 2813 provides an exception to this general rule by delaying the
reassessment of the property for one year following the change in
ownership. This -would have a substantial negative impact on the
property tax revenues for the County, cities, and all other taxing
jurisdictions which receive a portion of the property tax. For
example, a home which was purchased for $75,000 in 1975 had its
full cash value fixed as of the 1975 lien date and has increased
only 2% annually since then.
This home may now be worth three times what its "full cash value"
reflects . If the home is sold today for $300,000, the property
taxes would increase by approximately three times effective with
the date of the change in ownership. This could easily result in
an increase of $21;000 in the annual property taxes which are due on
this home. To delay the change in the fu 1 cash va ue of this
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
ggal�&,SIGNATURE S.
ACTION OF BOARD ON marcn Z4, IYYZ APPROVED AS RECOMMENDED >< OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
x UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC:
Please see Page 2 . ATTESTED MAR 2 4 1992
PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
�
M382 (10/88) BY DEPUTY
i
-2-
property for one year deprives all local governments of their
rightful share of- this $2000 in additional revenue. If this were
applied to each and every property which changes ownership during
1992, one can begin to get an idea of the magnitude of the property
tax loss which would be sustained by local governments .
Local governments in California are simply unable to afford this
level of property tax loss, at a time when the national recession
is deeper and lasting longer than anyone had predicted and when
other revenue sources, such as sales tax, vehicle license revenue
and other local discretionary revenues are below previous
estimates .
The County Assessor has recommended that the Board of Supervisors
oppose AB 2813 and this office concurs with that recommendation.
cc: County Administrator
County Assessor
Auditor-Controller
Treasurer-Tax Collector
Tony Enea, GAO' s Office
Steve Swendiman, Executive Director, CSAC
Les Spahnn, SRJ. Jackson, Barish & Associates