RCRC and a coalition of county stakeholders officially opposed Senate Bill 1431, authored by Steven Glazer (D-Orinda), relating to the reassessment of property damaged or destroyed in an area subsequently declared to be in a state of disaster (i.e. coronavirus).
SB 1431 would have required counties to remit property tax refund checks to certain types of property owners to compensate them for the indirect effects of state and local tenant protections. Instead of basing property tax assessments on the underlying value of the land and improvements, SB 1431 would have required County Assessors to base property tax assessments on a property’s temporary ability to produce income for the property owner.
Counties believe requiring counties to compensate private businesses for the indirect effects of government regulations would set a bad precedent. SB 1431 would have negative, long-term impacts on the most important funding source for counties, special districts, cities, and schools, as well as put a significant administrative burden on county assessors.
Fortunately, SB 1431 failed passage in the Senate Appropriations Committee on Thursday. The coalition letter can be accessed here. For more information, please contact Paul A. Smith, RCRC Senior Governmental Affairs Vice President, at (916) 447-4806 or email@example.com.