Property taxation: newly constructed property: reconstruction of damaged or destroyed property.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill modifies California’s property tax rules regarding newly constructed property. Specifically, it clarifies that if real property has been damaged or destroyed by a disaster and is subsequently reconstructed to be substantially equivalent to its pre-disaster state, the reconstruction will not be considered ‘new construction’ for tax purposes. Furthermore, it allows assessors to align the assessment of ‘substantial equivalence’ with government-mandated rebuild development standards, particularly in response to recent wildfires, to expedite the rebuilding process.
Key provisions
- Defines ‘newly constructed’ and ‘new construction’ to exclude timely reconstruction of damaged or destroyed property that is substantially equivalent to its prior state.
- Allows assessors to align the assessment of ‘substantial equivalence’ with government-mandated rebuild standards for properties damaged by disasters.
- Addresses tank improvements and replacements to comply with regulations, excluding these from being considered ‘new construction’ for tax purposes.
- Specifies that reconstruction related to underground storage tank compliance is considered normal maintenance and repair.
- Provides an exception for reconstruction of structures following underground storage tank work, deeming it normal maintenance and repair if substantially equivalent.
- Clarifies the definition of ‘newly constructed’ and ‘new construction’ in relation to rehabilitation, renovation, and modernization.
Who is affected
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