AB 1971: Property tax: exclusion from reassessment: home hardening retrofitting improvements.

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 assessors valuation of real property as shown on the 197576 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 adopt rules and regulations, as described, clarifying clarify that a home hardening retrofitting improvements, improvement, as defined, that do to an existing structure is considered nonassessable repair and maintenance, provided that the improvement does not add square footage, do not change the propertys use, do not include structural reconfigurations, and do not or include substantial rehabilitation do not trigger reassessment as new construction. rehabilitation.