SB 1304: Property taxation: disaster relief: Porter Ranch methane gas leak.

Existing property tax law authorizes the board of supervisors of a county to provide that every assessee or person liable for taxes on any taxable property whose property was damaged or destroyed without his or her fault may apply for reassessment of that property, as provided. To be eligible for reassessment, existing law requires that the damage or destruction of the property be caused by specified circumstances, including a major misfortune or calamity in an area or region subsequently proclaimed by the Governor to be in a state of disaster.

This bill would additionally authorize the board of supervisors of a county to provide for reassessment of property destroyed or damaged by a major misfortune or calamity in an area or region subsequently proclaimed by the Governor to be in a state of emergency. The bill would specify that damage includes a diminution in the value of property as a result of environmental contamination. The bill would also provide that the amendments made by its provisions would apply retroactively to property located in the Porter Ranch neighborhood in the City of Los Angeles that was affected by the methane gas leak in that area in 2015 and 2016 and that, with respect to these properties, the application for reassessment may be filed within 12 months of the enactment of this bill or within the time specified in the ordinance, whichever is later. The bill would specify that these provisions do not alter existing law regarding claims or defenses related to diminution of property values or establish a presumption that property values have declined or that any property is in any way damaged or destroyed or otherwise contaminated for purposes of a civil action related to the methane gas leak in the Porter Ranch neighborhood.

Existing law requires the assessed value of the property in its damaged condition, determined as specified, to be the taxable value of the property until it is restored, repaired, reconstructed, or other provisions of the law require the establishment of a new base year value. Existing law, if partial reconstruction, restoration, or repair has occurred on any subsequent lien date, requires the taxable value to be increased by a specified amount.

This bill, for property destroyed or damaged in an area or region proclaimed by the Governor to be in a state of emergency, on the 3rd lien date following the calamity, if partial reconstruction, restoration, or repair is not progressing in a timely fashion, would require the assessed value of the property to be determined, as specified.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.

This bill would declare that it is to take effect immediately as an urgency statute.