Property taxation: transfer of base year value: disaster relief.
The bill aims to alleviate some of the financial strain on property owners whose properties have been impacted by disasters by providing a more streamlined and favorable process for transferring property tax assessments. This could lead to a more equitable situation for homeowners and businesses affected by natural disasters, as it offers them the flexibility to rebuild or relocate without the fear of significantly higher property taxes due to reassessment processes that typically accompany property transfers.
Senate Bill No. 1091, introduced by Senator Stone, addresses property taxation in the context of disaster relief. The bill amends Section 69 of the Revenue and Taxation Code to allow the base year value of property that has been substantially damaged or destroyed by a disaster, as declared by the Governor, to be transferred not just within the same county, but also to comparable property located in a different county. This change applies to disasters that occurred between January 1, 2017, and July 1, 2018, thereby enabling property owners affected by such disasters to more easily replace their properties without incurring a heavier tax burden.
Notably, the bill includes provisions stating that the state shall not reimburse local agencies for property tax revenues lost due to this new legislation, which has raised concerns among local governments. Critics argue that this aspect of the bill could lead to budget shortfalls for localities already struggling to manage the economic aftermath of disasters. Furthermore, advocates for the bill argue that the lack of reimbursement is justified in encouraging swift recovery efforts by property owners, while opponents fear it could undermine local financial stability in the long term.