CA SB 890
Title: Property taxation: change of ownership and base year value transfers.
Author: Senate Governance and Finance Committee
Summary
SB 890, Committee on Governance and Finance. Property taxation: change of ownership and base year value transfers. The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, “full cash value” is defined as the assessor’s valuation of real property as shown on the 1975–76 tax bill under “full cash value” or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred.Existing property tax law, pursuant to constitutional authorization applicable to purchase or transfers that occurred on or before February 15, 2021, provides that the purchase or transfer of the principal residence, and the first $1,000,000 of other real property, of a transferor in the case of a transfer between parents and their children or, if certain conditions are met, between grandparents and their grandchildren, is not a “purchase” or “change in ownership” for purposes of determining the “full cash value” of property for taxation (prior intergenerational transfer exclusion). Existing property tax law, pursuant to constitutional authorization, excludes, beginning on and after February 16, 2021, from the term “change in ownership” purchases or transfers of real property that is the principal residence, or is a family farm, of an eligible transferor in the case of a purchase or transfer between parents and their children or, if certain requirements are met, between grandparents and their grandchildren, and certain other requirements are satisfied (intergenerational transfer exclusion).Existing property tax law provides that a “change in ownership” does not include certain transfers of a mobilehome park or a floating home marina to a nonprofit corporation, stock cooperative corporation, limited equity stock cooperative, or other entity formed by the tenants of a mobilehome park or floating home marina, respectively, for the purpose of purchasing the mobilehome park or floating home marina, as applicable, if certain requirements relating to tenant rental and participation are met. Existing law provides that if a transfer of a mobilehome park or floating home marina is excluded from a change of ownership pursuant to that provision but the park or floating home marina has not been converted to a condominium, stock cooperative ownership, or limited equity cooperative ownership, then any transfer of shares of the voting stock of, or other ownership or membership interests in, the entity that acquired the park or floating home marina is a change in ownership of a pro rata portion of the real property of the park or floating home marina, unless the transfer is for the purpose of converting the park or floating home marina into one of specified entities or the transfer is excluded from change in ownership pursuant to specified laws, including provisions relating to interspousal transfers.This bill would also provide that if a transfer of a mobilehome park or floating home marina, as applicable, is excluded from a change of ownership pursuant to the above-described provision but the park or floating home marina has not been converted to a condominium, stock cooperative ownership, or limited equity cooperative ownership, then any transfer of shares of the voting stock of, or other ownership or membership interests in, the entity that acquired the park or floating home marina is a change in ownership of a pro rata portion of the real property of the park or floating home marina, unless the transfer is excluded from change in ownership pursuant to the intergenerational transfer exclusion.Existing property tax law, pursuant to a constitutional authorization, allows the transfer of the base year value of a qualified contaminated property to a comparable replacement property of equal or lesser value that is located in the same county and is acquired or newly constructed as a replacement for the contaminated prop
Status
Enrolled and presented to the Governor at 4 p.m.
Bill Documents
CA SB 890 - 09/19/23 - Enrolled
09/19/23 - CA SB 890 (09/19/23 - Enrolled)
CA SB 890 - 09/06/23 - Amended Assembly
09/06/23 - CA SB 890 (09/06/23 - Amended Assembly)
CA SB 890 - 03/21/23 - Introduced
03/21/23 - CA SB 890 (03/21/23 - Introduced)