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HomeMy WebLinkAboutMINUTES - 03241992 - 1.33 TO: BOARD OF SUPERVISORS Contra Costa FROM: Phil Batchelor, County Administrator •r _ `;• s x. County DATE: March 18, 1992 q'Cosa SUBJECT: LEGISLATION: AB 2846 (Allen) . SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Adopt a position in OPPOSITION to AB 2846 by Assemblywoman Allen, which would eliminate the supplemental property tax roll for all properties for which there. is a change in ownership during the 1992-93 assessment year if, following the purchase, the real property is eligible for the homeowners ' exemption and one or more of the purchasers has not previously been eligible to claim the homeowners ' exemption with respect to any other real property. BACKGROUND: Under current law, each county is required to prepare a supplemental property tax roll and to collect supplemental property taxes on property where a change of ownership occurs after the lien date in a given year or where construction is completed after the lien date. The supplemental roll prorates the property taxes for the balance of the assessment year and assesses the new property tax on the purchaser or owner of the property for the balance of that assessment year. AB 2846 would permanently eliminate the supplemental roll for any property which is newly constructed or for which there is a change of ownership during the year if the property is eligible for the homeowners ' exemption and one or more of the purchasers has not previously been eligible to claim the homeowners ' exemption with respect to any other property. This provision would be effective when the bill becomes effective. The bill includes an urgency clause and thus would become effective upon passage by the Legislature and approval by the Governor. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER �&SIGNATUREM:: 1�1, ACTION OF BOARD ON 791arch 24, 199Z-- APPROVED AS RECOMMENDED 'x OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE 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 BY DEPUTY M382 (10/88) -2- The purpose of this legislation is to provide first-time home buyers a property tax break in the year in which they purchase their first home by excusing them from paying the higher taxes which would generally result from the reassessment of the property following the change in ownership of the property. AB 2846 is well intentioned legislation which is clearly intended to encourage home ownership and assist first-time home buyers in purchasing a home. It is not known exactly how many of the properties on the supplemental roll are the result of first-time home buyers . However, whatever the number, local governments in California are simply unable to afford any further erosion of property tax revenue 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 2846 and this office concurs with that recommendation. cc: County Administrator County Assessor Auditor-Controller Treasurer-Tax Collector Tony Enea, CAO's Office Steve Swendiman, Executive Director, CSAC Les Spahnn, SRJ. Jackson, Barish & Associates