AB 2829

Bill Subjects

Abstract

Existing property tax law, in accordance with the California Constitution, provides for a "welfare exemption" for property used exclusively for religious, hospital, scientific, or charitable purposes and owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met. Under existing property tax law, property that meets these requirements that is used exclusively for rental housing and related facilities is entitled to a partial exemption, equal to that percentage of the value of the property that is equal to the percentage that the number of units serving lower income households represents of the total number of residential units, in any year that any of certain criteria apply. This bill, on and after January 1, 2021, and before January 1, 2041, would provide a similar exemption for qualified property, as defined, that meets the requirements of the welfare exemption and that is used exclusively for rental housing and related facilities, equal to that percentage of the value of the property that is equal to the percentage that the number of units serving moderate-income households, as defined, represents of the total number of residential units. The bill would require the owner of the property to certify specified information under penalty of perjury. The bill would require that a qualified property that qualifies for a partial exemption under these provisions before January 1, 2041, continue to receive that exemption on and after January 1, 2041, until a change in ownership occurs or the property ceases to include any units available to and occupied by moderate-income households, as provided. Existing law requires any bill introduced on or after January 1, 2020, that would authorize certain tax expenditures, as defined, to identify specific goals, purposes, and objectives that the expenditure will achieve, detailed performance indicators, and data collection requirements. The bill would require the Legislative Analyst to, on an annual basis beginning January 1, 2021, and until January 1, 2042, collaborate with the State Board of Equalization to review the effectiveness of the exemption, as provided, and to submit a report of their review to the Legislature. The bill would require, for these purposes, the State Board of Equalization to make information available to the Legislative Analyst upon request and each county assessor to make information available to the State Board of Equalization upon request. By imposing new duties upon local government officials with respect to the exemption provided by this bill, and by expanding the scope of the crime of perjury, the 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 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. This bill would take effect immediately as a tax levy.