AB 1453

Bill Subjects

Abstract

Existing property tax law, in accordance with the California Constitution, provides for a welfare exemption for property that meets certain requirements, including that it is used exclusively for religious, hospital, scientific, or charitable purposes and is owned and operated by certain nonprofit entities. Existing property tax law establishes a partial welfare exemption for property that is used exclusively for rental housing and related facilities that is owned and operated by an eligible nonprofit entity, including a limited partnership in which the managing general partner is an eligible nonprofit corporation or eligible limited liability company, or a veterans organization, as provided. This bill would authorize the partial welfare exemption to apply to property that is owned and operated by a limited partnership in which the managing general partner is an S corporation that qualifies as a nonprofit corporation, and the property is eligible for, and receives, federal low-income housing credits and federal historic tax credits. The bill would require that, with respect to property located within the jurisdictional boundaries of the City and County of San Francisco, any outstanding tax, interest, or penalty that was levied or imposed between the period of January 1, 2010, and January 1, 2020 upon property that satisfies the criteria described above for a partial welfare exemption be canceled, and any amount previously paid be refunded, provided that the owner of that property certifies that the property satisfied those criteria at the time the tax was levied. By imposing new duties upon local officials with respect to property taxation, and by expanding the crime of perjury by requiring the property owner to make a certification under oath, this bill would impose a state-mandated local program. This bill would make legislative findings and declarations regarding the public purpose served by the bill. This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.