Property taxation: redemption: permanent installment plan.
This legislation potentially alleviates financial burdens on property owners facing substantial damage due to emergencies or disasters. By modifying the eligibility requirements for tax deferral, the bill aims to ensure that more individuals and businesses can benefit from such relief, particularly in times of crisis when they may face significant financial strain. It allows taxpayers to have some leeway in managing their obligations while they recover from disaster-related setbacks.
Assembly Bill 1416, introduced by Assembly Member Ta, proposes amendments to Section 4222.5 of the Revenue and Taxation Code, specifically concerning property taxation and the allowance for permanent installment plans for tax payments. The bill's central provision enables property owners, in the event of a major disaster declared by the Governor, to defer payments of delinquent taxes for a year. Previously, only those installment plans in place at the time of a deferral request were eligible; AB 1416 broadens this to include plans that are requested at the time of the deferral application, thereby increasing accessibility for taxpayers affected by disasters.
While supporters of AB 1416 argue that it creates necessary flexibility in tax relief during emergencies, opponents may raise concerns about the implications for local tax revenues and the administration of these deferrals. There may be debates regarding how this impacts counties' ability to fund essential services, especially if there are widespread disasters leading to a high volume of deferment applications. Further, clarity on how the 'substantial disaster damage' is assessed might also be a point of contention within legislative discussions.