SB 431

PRO-RATED PROPERTY ASSESSMENTS I f, between January 1 and September 1 of any year, a building or improvement is moved, demolished or destroyed, or substantially damaged by fire, flood, wind or any other disaster, and is not restored and replaced before September 1 of that year, then present law requires the property assessor to update such damaged property's assessment to reflect the reduction in value and prorate it for the next tax year. However, this provision does not apply to the movement of a mobile home or other movable structure, including trailers or semitrailers that may be used, temporarily or permanently, as a residence, apartment, of fice, storehouse, warehouse, or for any other commercial or industrial purpose. The state, county, or municipal tax collector must collect taxes on the basis of the revised or corrected assessment as prorated by the assessor. An improvement is deemed sub stantially damaged when it has been rendered unfit for use or occupancy, or when such damage has reduced the value of the improvement by more than 50%. This bill adds that the same is required for buildings or improvements damaged or destroyed between Se ptember 1 and December 31 of any year . This provision is effective retroactively to January 1, 2024 , and also does not apply to mobile homes or other movable structures as described above. IMPROVEMENT OR NEW BUILDING COMPLETION I f, between January 1 and September 1 of any year, an improvement or new building is completed , sold , or leased, then present law requires the property assessor to make or correct the property's assessment on the basis of the value of the improvement at the time of its completi on. For the year in which it is completed, the assessment, or increase in assessment, of the improvement must be prorated for the portion of the year following the date of its completion. A n improvement or new building is completed when the structural po rtion of the building or improvement is substantially completed or when the real property is conveyed to a bona fide purchaser . A n improvement or new building must not be considered incomplete for assessment purposes for more than one calendar year follow ing the date on which the construction began . If an improvement or new building is considered incomplete for assessment purposes on January 1 of any year, then the owner must, no later than February 1, submit to the property assessor, in writing, the tota l cost of all materials used as of January 1, and the property assessor must assess such incomplete structure as real property based on the fair market value of the materials used. Actual cost of all materials is prima facie evidence of the value of such incomplete improvements. This bill excludes mobile homes or other movable structures as described above from th ese provision s. ASSISTANCE IN LOCATING IMPROVEMENTS Present law requires the state director of fire prevention to assist property assessors in locating improvements to property in counties where building permits are not required by each month provid ing the names of property owners and location of the property for which electrical inspections have been made. In addition, in counties that do not require building permits, copies of permits for subsurface sewage disposal systems must be furnished to the property assessor of the county where such systems are located by the agency issuing such permits. This bill excludes mobile homes or other movable structures as described above from th ese provision s. DECLARED DISASTERS I n the case of damage as a result of a disaster declared by the president of the United States, present law requires the annual assessment of an affected buil ding or improvement in a county included in the presidential declaration to be prorated for the actual time the building or improvement is destroyed and not replaced, or the actual time the building or improvement is substantially damaged, regardless of wh ether the building or improvement is restored or replaced by September 1 . T he total time the building or improvement is destroyed or damaged and not replaced or restored must exceed 30 days. The owner must apply for relief to the assessor of property by September 1 using a form approved by the director of the state division of property assessments. This provision does not take effect as to any particular county or municipality unless approved by a two-thirds vote of its governing body following the disas ter declared by the president of the United States. This bill excludes mobile homes or other movable structures as described above from t hese provision s . This bill adds that in the case of damage as a result of a disaster declared by the president of th e United States, the annual assessment of an affected building or improvement in a county included in the presidential declaration must be prorated for the actual time the building or improvement is destroyed and not replaced, or the actual time the build i ng or improvement is substantially damaged, regardless of whether the building or improvement is restored or replaced by January 1 of the next year . T he total time the building or improvement is destroyed or damaged and not replaced or restore d must e xcee d 30 days. The owner must apply for this relief to the property assessor by January 1 of the next year using a form approved by the director of the state division of property assessments. For tax year 2024, the owner must apply by June 30, 2025. Th ese p rovision s are effective retroactively to January 1, 2024 , and exclude mobile homes or other movable structures as described above from this provision. This provision does not take effect as to any particular county or municipality unless approved by a two -thirds vote of its governing body following the disaster declared by the president of the United States.