Property Taxation. Seismic Safety Construction Exclusion.

PROPERTY TAXATION. SEISMIC SAFETY CONSTRUCTION EXCLUSION. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Under the present provisions of the Constitution, real property is reassessed for taxation purposes when new construction occurs. An exception is made for specified reconstruction done after a disaster. This measure adds an additional exception where an unreinforced masonry bearing wall is reconstructed or improved. This measure excludes the portion of such reconstruction or improvement necessary to comply with any local ordinance relating to seismic safety from reassessment during the first 15 years following the reconstruction or improvement. Summary of Legislative Analyst\u27s estimate of net state and local government fiscal impact: Unknown local government loss of property tax revenues and minor to moderate increased appraisal costs. Unknown increased state costs to offset revenue losses of school and community college districts and possibly other local governments for property tax revenue loss. Minor increase in state income tax revenue due to lower property tax deduction