(a) (1) Notwithstanding any other provision of law, pursuant
to the authority of subdivision (i) of Section 2 of Article XIIIA of
the California Constitution, the base year value of qualified
contaminated property may be transferred, subject to the conditions
and limitations of that subdivision and this section, to a comparable
replacement property of equal or lesser value that is located in the
same county and is acquired or newly constructed as a replacement
for the contaminated property, pursuant to subparagraph (A) of
paragraph (1) of that subdivision.
   (2) The limitation in paragraph (1) requiring that the qualified
contaminated property and the replacement property be located in the
same county does not apply in a county in which the county board of
supervisors adopts a resolution making the provisions of this section
applicable to replacement properties acquired to replace qualified
contaminated properties located in another county within this state.
The resolution shall specify the date on and after which its
provisions are applicable. The specified date may be a date earlier
than the date on which the county adopts the ordinance, but no
earlier than November 3, 1998.
   (b) The replacement property shall be acquired or newly
constructed within five years after the original property is sold or
otherwise transferred.
   (c) (1) Upon the sale or transfer of the original property, the
assessor shall determine a new base year value for that property in
accordance with subdivision (a) of Section 2 of Article XIIIA of the
California Constitution and Section 110.1.
   (2) This section does not apply unless the sale or transfer of the
original property is a change in ownership that does either of the
following:
   (A) Subjects the original property to reappraisal at its current
fair market value in accordance with Section 110.1 or 5803.
   (B) Results in a base year value determined in accordance with
this section, Section 69, Section 69.3, or Section 69.5 because the
property qualifies under this section, Section 69, Section 69.3, or
Section 69.5 as a replacement dwelling or property.
   (d) Property tax relief under this section is not available for a
replacement property if the owner or owners of the original property
do either of the following:
   (1) Receive property tax relief under Section 74.7.
   (2) Sign a claim under Section 63.1 allowing the base year value
to stay with the original property.
   (e) For purposes of this section:
   (1) The "original property" means the qualified contaminated
property.
   (2) "Equal or lesser value" means the amount of the full cash
value of a replacement property that does not exceed one of the
following:
   (A) One hundred five percent of the amount of the full cash value
of the original property, if the replacement property is purchased or
newly constructed within the first year following the date of the
sale of the original property.
   (B) One hundred ten percent of the amount of the full cash value
of the original property, if the replacement property is purchased or
newly constructed within the second year following the date of the
sale of the original property.
   (C) One hundred fifteen percent of the amount of the full cash
value of the original property, if the replacement property is
purchased or newly constructed within the third year following the
date of the sale of the original property.
   (D) One hundred twenty percent of the amount of the full cash
value of the original property, if the replacement property is
purchased or newly constructed within the fourth year following the
date of the sale of the original property.
   (E) One hundred twenty-five percent of the amount of the full cash
value of the original property, if the replacement property is
purchased or newly constructed within the fifth year following the
date of the sale of the original property.
   For purposes of this paragraph, if the replacement property is, in
part, purchased and, in part, newly constructed, the date the
replacement property is "acquired or newly constructed" is the date
of acquisition or the date of completion of construction, whichever
is later.
   (3) The base year value of the original property shall be the base
year value of the original property as determined in accordance with
Section 110.1, with the inflation factor adjustments permitted by
subdivision (f) of Section 110.1. The base year value of the original
property shall also include any inflation factor adjustments
permitted by subdivision (f) of Section 110.1 up to the date the
replacement property is acquired or newly constructed, regardless of
whether the claimant continued to own the original property during
this entire period. The base year or years used to compute the base
year value of the original property shall be deemed to be the base
year or years of any property to which that base year value is
transferred pursuant to this section.
   (4) "Fair market value of the replacement property" means the full
cash value of the replacement property determined in accordance with
Section 110.1 as of the date on which that property was acquired or
new construction was completed. If the replacement property is, in
part, acquired and, in part, newly constructed, "fair market value of
the replacement property" means the fair market value of the land
and the improvements as of the date of completion.
   (5) "Fair market value of the qualified contaminated property"
means the full cash value of the qualified contaminated property, as
if that property was not contaminated, determined in accordance with
Section 110.1, as of the date of its sale or transfer by the
claimant.
   (6) "Claimant" means any owner of qualified contaminated property
claiming the property tax relief provided by this section.
   (7) "Comparable replacement property" means a property that is
similar in utility and function to the property that it replaces.
Property is similar in function and utility if it is, or is intended
to be, used in the same manner as the qualified contaminated
property.
   (f) (1) A claimant is not eligible for the property tax relief
provided by this section unless a claim is filed within three years
of the date the replacement property was purchased or the new
construction of the replacement property was completed.
   (2) The claimant shall provide to the assessor the following
information:
   (A) Proof that the claimant did not participate or acquiesce in
any act or omission that rendered the real property uninhabitable or
unusable, as applicable, or is related to any individual or entity
that committed that act or omission.
   (B) Proof that the qualified contaminated property has been
designated as a toxic or environmental hazard or as an environmental
cleanup site by an agency of the State of California or the federal
government.
   (3) The State Board of Equalization shall design the form for
claiming eligibility.
   (g) (1) Upon the timely filing of a claim, the assessor shall
adjust the new base year value as of the date the replacement
property is acquired or the date the new construction of the
replacement property is completed, whichever is later.
   (2) Any taxes that were levied on the replacement property prior
to the filing of the claim on the basis of the replacement property's
new base year value, and any allowable annual adjustments thereto,
shall be canceled or refunded to the claimant to the extent that the
taxes exceed the amount that would be due when determined on the
basis of the adjusted new base year value.
   (3) Notwithstanding Section 75.10, Chapter 3.5 (commencing with
Section 75) of Part 0.5 of Division 1 shall be utilized for purposes
of implementing this subdivision, including adjustments of the new
base year value of replacement properties acquired prior to the sale
or transfer of the qualified contaminated property.
   (h) This section applies only to replacement property that is
acquired or newly constructed on or after January 1, 1995.

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Last modified: July 31, 2008