Legislative Update

AB 83 Lieber (Support) - Establishes the Property Assessment and Revenue for Education Funding Program (PARE) for state funding of county property tax administration. Counties must meet designated performance standards to be eligible for the funding. CAA sponsored. Failed to pass out of the Legislature.

AB 293 Strickland & Benoit (Neutral) - This bill would, beginning with the lien date for the 2008-09 fiscal year, increase the homeowners' exemption (HOX) from $7,000 to $22,000 of the full value of a dwelling. This bill would also require, for the 2009-10 fiscal year and for each fiscal year thereafter, the county assessor to adjust the amount of the homeowners' exemption by the percentage change as noted in the Housing Price Index for California. This is one of six bills raising the HOX. Estimated revenue loss - nearly $1 billion for some of the proposals. All HOX bills failed to pass out of the Legislature.

AB 843 Eng (Support) - Increases the cap on the penalty for failure to file a change in ownership statement for properties not eligible for the homeowners' exemption from $2,500 to $10,000. The contents of the preliminary change in ownership report (PCOR) are currently prescribed by the legislature. This bill grants that authority to the State Board of Equalization, requiring consultation with the CAA. This bill was sponsored by the State Board of Equalization. Vetoed by the Governor.

AB 402 Ma (Support) -This bill would require, upon a request by the county assessor, the owners of residential properties that transfer ownership interests without utilizing recorded deeds, such as a cooperative housing development, to file a specified report describing the property with the assessor. If the owners fail to file this report, this bill would impose the same penalty as is imposed under existing law for failing to report a change in ownership to the assessor. CAA sponsored. Signed by the Governor.

AB 1042 Spitzer (Support) - Authorizes assessment appeal applications to be filed electronically. Signed by the Governor.

SB 559 Kehoe (Support) - Excludes from the definition of change in ownership any transfer of property between registered domestic partners that occurred on or after January 1, 2000. Exclusion to be granted on a prospective basis only from date of filing for exclusion. Under current law, transfers between registered domestic partners on or after January 1, 2006 are excluded from reassessment. Signed by the Governor.

SB 984 Ashburn (Support) - Regarding Proposition 60 and 90 transfers, increases the percentage to qualify for transfers, from 5% within the first year and 10% within the second year, to percentages that reflect actual market fluctuations by using a housing price index. CAA sponsored. Failed to pass out of the Legislature.