California Assembly Bill AB1341 Amended / Bill

 BILL NUMBER: AB 1341AMENDED BILL TEXT AMENDED IN SENATE JUNE 28, 2010 AMENDED IN ASSEMBLY APRIL 2, 2009 INTRODUCED BY Assembly Member  Saldana   Bonnie Lowenthal  FEBRUARY 27, 2009  An act to amend Section 276 of the Revenue and Taxation Code,   An act  relating to taxation. LEGISLATIVE COUNSEL'S DIGEST AB 1341, as amended,  Saldana   Bonnie Lowenthal  .  Taxation: disabled veterans' exemption.   Property taxation: possessory interests: Long Beach Courthouse.   Existing property tax law requires that all property subject to tax be assessed at its full value, and includes certain possessory interests among those property interests subject to tax. Existing property tax law defines a taxable possessory interest to be a use that is independent, durable, and exclusive.   This bill would clarify that, for purposes of the definition of a taxable possessory interest, a possession or use is not independent if it is pursuant to a project agreement and related agreements entered into by the Judicial Council with a nongovernmental entity, as specified, for the purpose of replacing the Long Beach Courthouse, if specified criteria are met. This bill would state that its provisions are declaratory of existing law.   This bill would make legislative findings and declarations as to the necessity of a special statute.   Existing property tax law provides, pursuant to the authorization of the California Constitution, for the exemption from property taxation of specified amounts of the assessed value of the home of a disabled veteran, or a veteran's spouse in the case in which the person has, as a result of a service-connected disease or injury, died while on active duty in military service.   This bill would correct an erroneous cross reference and remove obsolete references to prior exemption amounts.  Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   The Legislature finds and declares all of the following:   (a) The existing courthouse located on 415 West Ocean Boulevard in the city of Long Beach is in unsatisfactory physical condition, is a potential public safety risk to court staff and the public, and is in need of immediate replacement.   (b) This act is intended to expedite the facility's replacement by resolving a disputed property tax issue that could potentially delay the replacement project and add an element of unpredictable financial risk to the project's public sponsor.   (c) It is the intent of the Legislature in enacting this act to provide legislative direction to county assessors, the State Board of Equalization, the courts, and other involved parties regarding the interpretation of the term "independent" as it relates to the Long Beach Courthouse.   (d) This act does not constitute a change in, but is declaratory of, existing law. Therefore, no state law, including, but not limited to, Section 8 of Article XVI of the California Constitution, requires reimbursement to any entity for any ad valorem property tax revenue losses that may result from this act.   SEC. 2.   (a) For purposes of paragraph (1) of subdivision (a) of Section 107 of the Revenue and Taxation Code, there is no independent possession or use of land or improvements if that possession or use is pursuant to a project agreement and related agreements entered into by the Judicial Council with a nongovernmental entity in accordance with Section 70391.5 of the Government Code for the purpose of replacing the Long Beach Courthouse, if all of the following criteria are met:   (1) The nongovernmental entity is required to design, build, finance, operate, and maintain the Long Beach Courthouse.   (2) The Judicial Council establishes performance expectations and benchmark criteria for the court facility proposal in accordance with Section 70391.5 of the Government Code that serve as the basis for the selection of the nongovernmental entity.   (3) The Judicial Council and other governmental entities have exclusive use and control of the Long Beach Courthouse land and improvements for court and related activities for a term of 35 years.   (4) The Judicial Council holds title to the land and improvements of the Long Beach Courthouse.   (5) The nongovernmental entity is not treated as the owner of the improvements of the Long Beach Courthouse for any purpose, including federal income tax purposes, and does not take as a deduction any depreciation on the improvements.   (6) Any lease-leaseback of land and improvements of the Long Beach Courthouse with the nongovernmental entity is solely for the purpose of providing security for the payment by the Judicial Council of the service fee for services provided by the nongovernmental entity in connection with a court facility.   (b) This section shall not apply to any lease of, or improvements to, the Long Beach Courthouse by the Judicial Council with a nongovernmental entity to the extent the land or improvements are used by the nongovernmental entity as commercial office space, retail space, or paid parking spaces not designated for use for governmental purposes or court facilities.   SEC. 3.   The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the need to resolve the property tax issues potentially delaying the Long Beach Courthouse replacement project and to mitigate the attendant risks of that delay to the citizens of the County of Los Angeles and the State of California.   SECTION 1.   Section 276 of the Revenue and Taxation Code is amended to read: 276. (a) Except as otherwise provided by subdivision (b), for property for which the disabled veterans' exemption described in Section 205.5 was available, but for which a timely claim was not filed, a partial exemption shall be applied in accordance with whichever of the following is applicable: (1) Ninety percent of any tax, including any interest or penalty thereon, levied upon that portion of the assessed value of the property that would have been exempt under a timely and appropriate claim shall be canceled or refunded, provided that an appropriate claim for exemption is filed after 5 p.m. on February 15 of the calendar year in which the fiscal year begins but on or before the following December 10. (2) If an appropriate claim for exemption is filed after the time period specified in paragraph (1), 85 percent of that portion of any tax, including any interest or penalty thereon, that was levied upon that portion of the assessed value of the property that would have been exempt under a timely and appropriate claim, shall be canceled or refunded. Cancellations made under this paragraph are subject to the provisions of Article 1 (commencing with Section 4985) of Chapter 4 of Part 9. Refunds issued under this paragraph are subject to the limitations periods on refunds as described in Article 1 (commencing with Section 5096) of Chapter 5 of Part 9. (b) If a late-filed claim for the one-hundred-fifty-thousand-dollar ($150,000) exemption is filed in conjunction with a timely filed claim for the one-hundred-thousand-dollar ($100,000) exemption, the amount of any exemption allowed under the late-filed claim under subdivision (a) shall be determined on the basis of that portion of the exemption amount, otherwise available under subdivision (a), that exceeds one hundred thousand dollars ($100,000), as applicable. (c) For those claims filed pursuant to subdivision (a) after November 15, the exemption under that subdivision may be applied to the second installment. If that exemption is so applied, the first installment is still delinquent on December 10, and is subject to delinquent penalties provided for in this division if that installment is not timely paid. A refund shall be made to the taxpayer upon a claim submitted to the auditor if the exemption is applied to the second installment and either of the following is true: (1) Both installments are paid on or before December 10. (2) The reduction in taxes resulting from the exemption exceeds the amount of taxes due on the second installment.