HomeMy WebLinkAboutMINUTES - 04111995 - 1.34 l 39
TO: BOARD OF SUPERVISORS Contra
S ...L
FROM: Phil Batchelor, County Administrator
Costa L
County
DATE: April 6, 1995
COON
SUBJECT: LEGISLATION: AB 915 (Cunneen)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1 . ADOPT a position in OPPOSITION to AB 915 by Assemblyman Jim
Cunneen of San Jose which, as introduced, would exempt from
reassessment for property tax purposes property that is used,
constructed, acquired, or installed to meet or exceed
environmental regulations .
2 . DIRECT the County' s Legislative Representative in Sacramento
to actively oppose AB 915 .
BACKGROUND:
Under current law, real property is reassessed when property is
purchased, newly constructed or when a change of ownership occurs .
There are certain exemptions from this for new construction where
it is deemed that the exemption for reassessment is important in
order to encourage the construction. These exceptions include, for
instance:
✓ the installation of an active solar energy system,
✓ water conservation equipment installed for agricultural use,
✓ improvements to a home to make it more accessible for a
severely and permanently disabled resident of the home,
✓ seismic retrofitting of a building,
Of improvements to make a building more accessible to the
disabled,
CONTINUED ON ATTACHMENT: YES SIGNATURE: t
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
X APPROVE OTHER
SIGNATURE(S): 4(zlll'�k Ltzya
ACTION OF BOARD ON April 11, 1955 APPROVED AS RECOMMENDED OTHER X
ADOPTED position in opposition to AB 915 (Cunneen) ; REFERRED the bill
to the Finance Committee to monitor and advise the Board of possible
future amendments.
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: I., IT ., V, T T T NOES: IV AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED April 11 , 1995
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
cc: See Page 2 SUPERVISORS AND COUNTY ADMINISTRATOR
BYDEPUTY
-2-
installation of a fire sprinkler system or other fire
detection systems .
Assemblyman Cunneen has now introduced AB 915 which would exempt
from reassessment:
"property used, constructed, acquired, or installed
wholly or partly to meet or exceed the laws, rules, or
regulations administered by any environmental protection
agency of the United States, this state, or a political
subdivision of this state for the prevention, monitoring,
control, or reduction of air, water, or land pollution. "
Using as just one example the pending "Clean Fuels" projects which
the oil refineries in this County are presently undertaking, AB 915
could put at risk some $2 . 1 billion in new construction. This
would translate to $21 million in the first year in lost property
taxes to the County and other taxing agencies . This amount would,
of course, increase each year thereafter by the 2% inflation
factor. There are, in addition, almost an endless stream of
additional potential construction projects which would be placed at
risk in terms of reassessment for property tax purposes .
Since the bulk of the refineries in this County are in the
unincorporated area of the County, the bulk of the $21 million loss
would be from the County General Fund.
Clearly, the County is not in a position to forego this level of
property tax revenue and therefore, it is recommended that the
Board of Supervisors oppose AB 915 and direct its legislative
representative in Sacramento to actively oppose the legislation.
cc: County Administrator
County Assessor
Auditor-Controller
Treasurer-Tax Collector
County Counsel
Les Spahnn; Heim, Noack, Kelly & Spahnn
f
i
CALIFORNIA LEGISLATURE-1995-96 REGULAR SESSION
ASSEMBLY BILL No. 915
Introduced by Assembly Member Cunneen.
February 22, 1995
' An act to add Section 74:7 to the Revenue 'and Taxation
Code,relating to taxation;to take effect immediately,tax levy.
LEGISLATIVE COUNSEL'S DIGEST
i AB 915, as introduced, Cunneen. Taxation.
Existing provisions of Article XIII A of the California
Constitution limit ad valorem taxes on real property to 1% of
i its full cash value, which is defined as the assessor's valuation
E of the real property as shown on the 1975-76 tax bill under
"full cash value," or thereafter the appraised value of real
property when purchased, newly constructed, or a change of
ownership has occurred. .
This bill would provide that, for purposes of this limitation,
the term "new construction" does not include property that
is used, constructed, acquired, or installed to meet or exceed
environmental regulations, as provided. This bill would apply
this exclusion commencing with the 1996 property tax lien
date.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
99
1
AB 915 — 2 —
The
- 2 --
The people of the State of California do enact as follows.
1 SECTION 1. Section 74.7 is added to the Revenue and
2 - Taxation Code, to read:
3 - 74.7. For the purpose of paragraph (4) of subdivision
4 (c) ' of Section 2 of Article XIII A of the California
5 Constitution, "newly constructed" and new
6 construction" does not include property used,
7 constructed, acquired, or installed wholly or partly to
.8 meet or exceed the laws, rules, or regulations
9 administered by any environmental protection agency of
14 the United States, this state, or a political subdivision of
11 this . state=for the prevention,,,monitoring, control, or
12 reduction of air, water, or land pollution. This subdivision
13 applies.to allproperty that would otherwise be taxable for
14 the:first time.on.or after March 1, 1996.
15 SEC. 2. This act provides for a tax levy within the
16 meaning of Article IV of the Constitution and shall go into
17 immediate effect.
O
99
DATE: 4L111-,)6-
REgUEST To SPEAK FORM
(THREE (3) MINUTE LIMIT) (/D
Complete this form and place it in the box near the speakers' rostrum before
addressing the Board.
NAME: J0 PHONE: 292-0-&-151C?
ADDRESS: 0,2-e:2 Crly: e,4kr,-A-9
I am speaking formyself OR organization:
Check one: (NAME OF ORGAN 17,-NI-ION)
I wish to speak on Agenda Item # 1.34 .
My comments will be: general X f6r against
I wish to speak on the subject of
I do not wish to speak but leave these comments for the Board to consider.
3 '1
AMENDED IN ASSEMBLY APRIL 3; 1995
CALIFORNIA LEGISLATURE-2995-96 REGULAR SESSION
ASSEMBLY BILL No. 915
a
Introduced by Assembly Member Cunneen
February 22, 1995
An act to add Section 74.7 70.1 to the Revenue and Taxation
i Code,relating to taxation,to take effect immediately,tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 915, as amended, Cunneen. Taxation,
Existing provisions of Article .XIII A of the California
Constitution limit ad valorem taxes on real property to 1% of
its full cash value, which is defined as the assessor's valuation
of the real property as shown on the 1975-76 tax bill under
"full cash value," or thereafter the appraised value of real
.,r. property when purchased, newly constructed, or a change of
4 - ownership has occurred.
This bill would provide that, for purposes of this limitation,
the term "new construction" does not include property that
is used, constructed, acquired, or installed to meet or exceed
environmental regulations, as provided. This bill would apply
this exclusion commencing with, the I996 .1995 property tax
lien date.
This bill would make legislative Endings and declarations as
to the definition of the term new construction..
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee; yes.
State-mandated local program: no.
98
AR 915 — 2 —
The
- 2 --
The people of the State of California do enact as follows:
1 SECTION 1. The Legislature ,Binds and declares the
2 following.-
3 (a) Article Xlll A of the California Constitution does
4 not deizne the term `new construction"as used in that
5 article.
6 (b) In the absence of definition by the California
7 Constitution, the Legislature has defined the term `new
8 construction"as used in Article XIII A of the California
9 Constitution to exclude from that term any rehabilitation
10 of property other than a "major rehabilitation."
11 (c) The addition of Section 7'0.1 to the Revenue and
12 Taxation Code by this act would further clarify the
13 meaning of the term `new construction,` in a manner
14 consistent with the existing definition of that term, by
15 excluding from that term certain pollution
16 control-related property that does not constitute a major
17 rehabilitation ofproperty to which it is added
18 SEC. 2. Section-744 70.1 is added to the Revenue and
19 Taxation Code, to read:
20 Wit':
21 70.1. For the purpose of h +4� of subdivisie r
22 +e* subdivision (a) of Section 2 of Article XIII A of the
23 California Constitution, "newly constructed" and "new
24 construction" does not include property used,
25 constructed, acquired, or installed wholly or partly to
26 meet or exceed the laws, rules, or regulations
27 administered by any environmental protection agency of
28 the United States, this state, or a political subdivision of
29 this state for the prevention, monitoring, control, or
30 reduction of air, water, or land pollution. This subdivision
31 applies to all property that would otherwise be taxable for
32 the first time on or after March 1, 96
4-91995.
33 SEC. 2. This act provides for a tax levy within the
34 meaning of Article IV of the Constitution and shall go into
35 immediate effect.
O
98