Inflation Factor
The inflation factor increase in property taxes for 2003 will be 1.02%. By law it must not exceed 2%, and is tied to the California Consumer Price Index. Since 1976, each year the inflation factor has ranged between 1.01% and 1.02%.
Assessment Appeals
In the past, the deadline for filing property tax appeals disputing the assessed value of property on the regular roll (i.e., not due to a change in ownership), has been September 15th, with some exceptions depending on whether the taxpayer received a notice from the Assessor of the assessed value. Legislative changes applicable to all property (real or personal), on either the secured or unsecured roll, now is tied to whether the Assessor has mailed (prior to August 1st) notices of the assessed value. If the Assessor has mailed such notices, the appeals deadline for the County is September 15th; if the Assessor has not mailed such notices, the appeals deadline for the County is November 30th. (The Assessor has to decide by April 1st each year, so taxpayers will know the deadline well in advance.)
Additionally, legislation effective January 1, 2002, had changed Rev. & Tax Code §1606 concerning the exchange of information in the assessment appeals process, and this year the State Board amended revised Property Tax Rule 305.1, concerning exchange of information in an appeals.
Base Year Value Transfers for Persons Age 55+ and Disabled Persons
To be eligible for this exemption, one must sell their property (residence which is eligible for the homeowner's exemption) and purchase or construct a replacement dwelling of equal or lesser value within two years before or after the sale of the prior dwelling. Letter to Assessor No. 2002/019 announced a revised opinion of the State Board of Equalization that where an individual purchased land prior to the two-year limit, but constructed the new, replacement residence within the two-year period, the person would be eligible for the exclusion.
Additionally, legislation effective January 1, 2003, made these changes:
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Specifies that land now includes a pro rata interest in a resident-owned mobile home park.
- Extends the claim deadline to allow prospective relief for resident-owned mobile home parks recently reassessed for pro rata changes in ownership. ("Prospective" – change assessment for the future, starting with the lien date of the assessment year in which the claim is filed; but not for prior time missed.)
- Allows a taxpayer to qualify for this base year value transfer on a prospective basis if their home was destroyed in a disaster and the replacement property was purchased or newly constructed prior to March 24, 1999. (This may help persons whose homes were destroyed in the "Paint Fire" in Santa Barbara.)
Exemptions from Changes in Ownership (Reassessment)
A new exemption for Indian Tribal -Owned Low-Income Housing was created effective January 1, 2003. Additional changes were made to the Disabled Veterans' Exemption.
Parent/Child Exclusion
Last year, the signature of the transferor at the bottom of page 1 of the Claim form was removed; this year it was put back in and effective January 1, 2003, is required. You will want to check that you are using an updated form containing room for the transferor's signature at the bottom of page 1.
Board Forms, Publications, and Letters
The State Board of Equalization is frequently updating their manuals and publications, Assessor's Handbook, and Law Guide, and these are excellent aids for many property tax, change in ownership, and appraisal questions. They are available on the Internet at http://www.boe.ca.gov/info/boelist.htm. At the same location you can obtain certain State (but not county) property tax forms. The link to http://www.boe.ca.gov/proptaxes/leop.htm will provide Form BOE-100-B, "Statement of Change in Control and Ownership of Legal Entities," which previously could only be obtained by calling Sacramento.
Letters to Assessors from 1978 through the present are also on the Internet at http://www.boe.ca.gov/proptaxes/ltacont.htm.
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The contents of this publication are for information purposes only and are not meant nor should be construed to be legal advice. Note, also, the date of the document. Laws are constantly changing, and are subject to differing interpretations. We, therefore, urge you to do additional research or to contact your own legal or tax counsel before acting on the information contained herein.
This article: www.taxlawsb.com/resources/PptyTax/2003.htm
Added February, 2003.
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