AB 1977

Bill Subjects

Abstract

Pursuant to constitutional authorization, existing property tax law provides a welfare exemption, pursuant to which property used exclusively for religious, hospital, scientific, or charitable purposes owned and operated by specified types of entities is exempt from taxation if it meets certain criteria, including that the property is used for the actual operation of the exempt activity, and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose. Under existing property tax law, property used exclusively for the charitable purposes of museums owned and operated by religious, hospital, scientific, or charitable fund, foundation, limited liability company, or corporation that meets these criteria is deemed to be within the welfare exemption. Existing property tax law requires a person claiming the welfare exemption to file that claim with the assessor and obtain an organizational clearance certificate from the State Board of Equalization, as provided. This bill would define the term "museum" for these purposes and prohibit the assessor from denying a claim for the welfare exemption for property that is used exclusively for the charitable purposes of museums, as described above, on the basis that the property is occasionally made available for private rentals as a service to the community if specified conditions are met. By adding to the duties of assessors in administering the welfare exemption, this bill would impose a state-mandated local program. 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, if the Commission on State Mandates determines that the bill contains costs 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. This bill would take effect immediately as a tax levy.