# Lower your property tax in California.....



## beach (May 24, 2011)

LEGISLATIVE COUNSEL'S DIGEST

   SB 464, as introduced, Anderson. Property taxation: new

construction exclusion: fire protection devices.

   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. Pursuant to an authorization in the

California Constitution, existing law excludes from classification as

"newly constructed" the construction or installation of any fire

sprinkler system, other fire extinguishing system, fire detection

system, or fire-related egress improvement that are constructed or

installed in an existing building, as specified.

   This bill would expand this exclusion to include the construction

or installation of any fire sprinkler system, other fire

extinguishing system, and fire detection system in a new building, as

defined, the construction or installation of which is completed on

or after January 1, 2012. This bill would require the county assessor

to administer this expansion, as provided, and to reduce the base

year value of the new building by the value of the fire sprinkler

system, other fire extinguishing system, and fire detection system,

as specified.

   By imposing new duties on county assessors, this bill would impose

a state-mandated local program.

   The California Constitution requires the state to reimburse local

agencies and school districts for certain costs mandated by the

state. Statutory provisions establish procedures for making that

reimbursement.

   This bill would provide that, if the Commission on State Mandates

determines that the bill contains costs mandated by the state,

reimbursement for those costs shall be made pursuant to these

statutory provisions.

   Section 2229 of the Revenue and Taxation Code requires the

Legislature to reimburse local agencies annually for certain property

tax revenues lost as a result of any exemption or classification of

property for purposes of ad valorem property taxation.

   This bill would provide that, notwithstanding Section 2229 of the

Revenue and Taxation Code, no appropriation is made and the state

shall not reimburse local agencies for property tax revenues lost by

them pursuant to the bill.

   This bill would take effect immediately as a tax levy.

   Vote: majority. Appropriation: no. Fiscal committee: yes.

State-mandated local program: yes.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 74 of the Revenue and Taxation Code is amended

to read:

   74.  (a) For purposes of subdivision (a) of Section 2 of Article

XIII A of the Constitution, "newly constructed" does not include the

construction or installation of any fire sprinkler system, other fire

extinguishing system, fire detection system, or fire-related egress

improvement that is constructed or installed on or after November 7,

1984.

   (b) Notwithstanding any other provision of this chapter or Chapter

3.5 (commencing with Section 75), neither "newly constructed" nor

"new construction" includes the construction or installation of any

fire sprinkler system, other fire extinguishing system, fire

detection system, or fire-related egress improvement that is

constructed or installed on or after November 7, 1984.

   © For purposes of this section:

   (1) "Fire sprinkler system" means any system intended to discharge

water for the purpose of suppressing or extinguishing a fire, and

includes a fire sprinkler system that derives its water from the

domestic water supply of the building or structure of which it is a

part.

   (2) "Other fire extinguishing system" means any system intended to

suppress or to extinguish a fire other than by discharging water

upon the fire. An "other fire extinguishing system" includes, but is

not limited to, a component or application that, solely or primarily

for the purposes of fire suppression or extinguishment, is made part

of the heating, ventilating, or air-conditioning system of a building

or structure, a wet chemical system, or a dry chemical system.

   (3) "Fire detection system" means any system or appliance intended

to detect combustion, or the products thereof, and to activate an

alarm or signal, whether audio, visual, or otherwise, including all

equipment used to transmit fire alarm activations and related signals

to a remote location. A fire detection system includes any system

that serves additional functions, but this section shall only apply

with respect to that portion of a system that is for fire detection

purposes. No portion of a fire detection system as described in this

paragraph shall be deemed to be personal property, or shall be deemed

to be excluded from that fire detection system, by reason of being

owned or controlled by a person other than the owner of property upon

which the fire detection system was constructed or installed.

   (4) "Fire-related egress improvement" means any improvement

intended to do either of the following:

   (A) Provide any new, or improve any existing, means of egress for

individuals from a structure, or any portion thereof, in which a fire

is in progress, as to which there is an imminent threat that a fire

may soon be in progress, or as to which individuals therein might be

subjected to health hazards or the risk of physical injury due to a

fire elsewhere.

   (B) With respect to individuals who for any reason cannot evacuate

a structure in which a fire is in progress, provide a means of

safeguarding, or increasing the safety of, those individuals until

the time that the rescue of those individuals can be effected.

   (5) "Existing building" means any building or structure already

erected at the time that a fire sprinkler system, other fire

extinguishing system, fire detection system, or fire-related egress

improvement is constructed or installed in that building or

structure.

   (d) Any system or improvement referred to in this section shall be

deemed to have been constructed or installed on or after November 7,

1984, if the actual construction or installation thereof is

completed on or after November 7, 1984, regardless of when the actual

construction or installation thereof was commenced or any building

permit pertaining thereto was issued.

   (e) This section applies only to fire sprinkler systems, other

fire extinguishing systems, fire detection systems, and fire-related

egress improvements, as defined in this section, that are constructed

or installed in an existing building.

_   (f) (1) Notwithstanding subdivision (e) or any other law, for_

_purposes of this section, the construction or installation of any_

_fire sprinkler system, other fire extinguishing system, and fire_

_detection system includes the construction or installation of any_

_fire sprinkler system, other fire extinguishing system, and fire_

_detection system in a new building. The assessor shall administer_

_this subdivision in the following manner: _

_   (A) The owner of the building shall file a claim with the assessor_

_and provide the assessor any documents necessary to identify the_

_value attributable to the fire sprinkler system, other fire_

_extinguishing system, and fire detection system included in the price_

_of the new building. _

_   (B) The assessor shall evaluate the claim and determine the_

_portion of the value of the new building that is attributable to the_

_fire sprinkler system, other fire extinguishing system, and fire_

_detection system. The assessor shall then reduce the new base year_

_value of the new building by an amount equal to that portion of the_

_value of the new building attributable to the fire sprinkler system,_

_other fire extinguishing system, and fire detection system. _

_   (2) The extension of the new construction exclusion to a new_

_building provided by this subdivision shall remain in effect only_

_until there is a subsequent change in ownership of the new building._



_   (3) For purposes of this subdivision, all of the following shall_

_apply: _

_   (A) "New building" means any building, structure, or portion_

_thereof that is newly constructed upon land or improvements that were_

_originally constructed prior to January 1, 2011, and that qualified_

_for reassessment pursuant to Section 170. _

_   (B) "Owner" means the original owner of property that was damaged_

_or destroyed by misfortune or calamity who was eligible to apply for_

_reassessment pursuant to Section 170. _

_   © The construction or installation of any fire sprinkler system,_

_other fire extinguishing system, and fire detection system does not_

_include the construction or installation of any fire sprinkler_

_system, other fire extinguishing system, and fire detection system_

_that is required to be constructed or installed in a nonresidential_

_new building pursuant to Title 24 of the California Code of_

_Regulations or any local ordinance. _

_   (4) This subdivision shall only apply to constructions and_

_installations of fire sprinkler systems, other fire extinguishing_

_systems, and fire detection systems completed on or after January 1,_

_2012. _

  SEC. 2.  If the Commission on State Mandates determines that this

act contains costs mandated by the state, reimbursement to local

agencies and school districts for those costs shall be made pursuant

to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of

the Government Code.

  SEC. 3.  Notwithstanding Section 2229 of the Revenue and Taxation

Code, no appropriation is made by this act and the state shall not

reimburse any local agency for any property tax revenues lost by it

pursuant to this act.

  SEC. 4.  This act provides for a tax levy within the meaning of

Article IV of the Constitution and shall go into immediate effect.


----------

