Property Taxation. Disasters.

PROPERTY TAXATION. DISASTERS. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Currently, with exceptions, real property ad valorem taxes are limited to 1% of the full cash value base of the property (value in 1975-76 or thereafter, when property is acquired from another party or new construction occurs; increased up to 2% annually for inflation. For property reconstructed after disaster, base-year value is not increased to reflect new construction if fair market value is comparable to that before disaster. This amendment similarly provides that base-year value may be transferred to comparable property acquired in same county to replace property substantially damaged or destroyed by disaster. Summary of Legislative Analyst\u27s estimate of net state and local government fiscal impact: Beginning in 1985-86, local property tax revenues would decrease by an unknown amount. County assessors and tax collectors would have higher administrative costs which would vary from county to county, but should not be significant. State would replace revenues lost by school districts and community college districts. State income tax revenues could increase because owners of replacement property could deduct smaller amounts of property taxes on income tax returns. These effects on state costs and revenues cannot be estimated