AB 3141

Bill Subjects

Property Taxation Possessory Interests Seaport Environmental Improvements

Abstract

Existing property tax law requires that all property subject to tax be assessed at its full cash value, and includes certain possessory interests among those property interests that are subject to tax. Existing property tax law defines a taxable possessory interest to be a use that is independent, durable, and exclusive. Existing property tax law specifies, for purposes of the definition of a taxable possessory interest, various types of possession or use that are not considered independent possession or use of land, including when that possession or use is a tenancy in a residential unit of a publicly owned housing project by a low-income household, as specified. This bill would provide, for the 2025–26 fiscal year to the 2029–30 fiscal year, inclusive, that there is no independent or exclusive possession or use of land or improvements if that possession or use is of any infrastructure at a public seaport, as defined, that is newly constructed on or after January 1, 2025, as described, as part of a nonrevenue-generating environmental improvement, as defined. The bill would, among other things, deem the construction or installation made or used for the operation of any fully automated cargo handling equipment, as defined, to be independent, durable, and exclusive, as specified. The bill would continue to exclude a possessory interest from exclusion under the bill's provisions after the 2029–30 fiscal year, if the interest is excluded prior to the inoperative date of the bill's provisions, until there is a subsequent change in ownership of the interest or until the date the nonrevenue-generating environmental improvement is used for the operation of any fully automated cargo handling equipment, whichever is earlier. By requiring local tax officials to administer the bill's provisions, the bill would impose a state-mandated local program. The bill would make related legislative findings and declarations. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would specify that it does not authorize a tax expenditure. 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.