Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

General Law Provisions

Supplemental Acts to the Revenue and Taxation Code

Stats. 1992, Ch. 93

Stats. 1992, Ch. 93An act relating to property taxation, and declaring the urgency thereof, to take effect immediately.

Section 1. Legislative finding. The Legislature finds and declares as follows:

(a) Assessments of state-assessed property by the State Board of Equalization have on many occasions been subject to legal challenge.

(b) Valuation issues raised by those lawsuits have placed in question significant amounts of property tax revenues that have already been collected and expended for the provision of essential public services, and thus jeopardized the ability of cities, counties, school entities, and special districts to adequately fund essential public services in the future.

(c) Given the number and potential fiscal impact of lawsuits contesting State Board of Equalization assessments of property, it is appropriate and necessary that the Legislature clarify state policy with respect to the settlement of those lawsuits.

Sec. 2. State Board of Equalization; settlement of lawsuits. (a) Notwithstanding any other provision of law, and in addition to its general authority with respect to the settlement of lawsuits, the State Board of Equalization is expressly authorized to enter into, in its discretion, the settlement of a lawsuit that provides for the manner in which the affected state assessee's property will be valued in future assessment years, where all of the following are satisfied:

(1) The lawsuit involves refunds with respect to one or more prior assessment years.

(2) A judgment in favor of the taxpayer in the lawsuit would have a significant, negative impact on the fiscal status of cities, counties, school entities, and special districts.

(3) The State Board of Equalization determines that the settlement is reasonably balanced against any assessment reductions in future assessment years that would result from the settlement and the risks and expense of continued litigation.

(4) The required number of affected counties, as specified in the settlement, agree to the settlement.

(5) The State Board of Equalization has obtained the Attorney General's approval of the settlement.

(b) For purposes of this act, "settlement of a lawsuit or lawsuits" includes, but is not limited to, a settlement agreement with all parties to, and all taxpayers included within the scope of, a validation proceeding filed pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure, that includes as a party or within its scope all parties to the settlement agreement, and in which the validity and enforceability of the settlement agreement is confirmed. Any settlement agreement executed pursuant to this act shall be deemed a contract within the meaning of Section 53511 of the Government Code.

Sec. 3. Declaratory of existing law. Section 2 of this act does not constitute a change in, but is declaratory of, existing law, including, but not limited to, Section 19 of Article XIII of the California Constitution.

Sec. 4. Validation action; time limitation. For any validation action filed pursuant to this act during calendar year 1992, the time limitation for filing contained in Section 860 of the Code of Civil Procedure is extended from 60 days to 90 days.

Sec. 5. Urgency statute. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:

In order to clarify the authority of the State Board of Equalization to settle pending lawsuits that, if resolved in favor of the plaintiffs therein, could result in severe property tax revenue losses to cities, counties, school entities, and special districts, it is necessary that this act take effect immediately.

History.—Enacted by Stats. 1992, Ch. 93, in effect June 18, 1992.