Property tax: exclusion from reassessment: home hardening retrofitting improvements., the official text

An act to add Section 74.1 to the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL'S DIGEST

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. The California Constitution specifies that “newly constructed” does not include the construction or reconstruction of seismic retrofitting components, as defined by the Legislature. Existing law, pursuant to that constitutional authorization, defines seismic retrofitting components to mean seismic retrofitting improvements and improvements utilizing earthquake hazard mitigation technologies. Existing law, pursuant to constitutional authorization, also excludes from the definition of “newly constructed” the construction or installation of certain fire sprinkler systems, or other fire extinguishing systems, fire detection systems, or fire-related egress improvements.
This bill would require the State Board of Equalization to clarify that a home hardening retrofitting improvement, as defined, to an existing structure is considered nonassessable repair and maintenance, provided that the improvement does not add square footage, change the property’s use, include structural reconfigurations, or include substantial rehabilitation.

The people of the State of California do enact as follows:

SECTION 1.
Section 74.1 is added to the Revenue and Taxation Code, to read:
74.1.
(a) For the purposes of this section, “home hardening retrofitting improvement” means an improvement that complies with the provisions of the most recent edition of Chapters 5 and 6 of the California Wildland-Urban Interface Code (Part 7 of Title 24 of the California Code of Regulations), or any successor chapter.
(b) The State Board of Equalization shall clarify that a home hardening retrofitting improvement to an existing structure is considered nonassessable repair and maintenance, provided that the home hardening retrofitting improvement does not add square footage, change the property’s use, include structural reconfiguration, or include substantial rehabilitation.