Property tax: welfare exemptions: rental housing and related facilities.
The proposal mandates the cancellation of any outstanding property taxes, interest, or penalties imposed on qualifying properties between January 1, 2010, and January 1, 2020. Moreover, it allows for refunds on previously paid taxes, thereby easing the financial burden on eligible property owners. This could significantly impact local budgets and the operations of local government agencies that rely on property tax revenues. Additionally, the bill introduces new certification requirements under penalty of perjury, which may create additional administrative duties for local officials.
AB1453 is a legislative bill introduced in California that amends the Revenue and Taxation Code to provide for special provisions regarding property tax exemptions for rental housing and related facilities operated by certain nonprofit entities. Specifically, it expands the eligibility for the existing welfare exemption, allowing entities such as limited partnerships whose managing general partner is an S corporation to qualify if they receive federal low-income housing credits and federal historic tax credits. This change aims to facilitate housing developments that provide decent and affordable living spaces for low-income households within San Francisco.
One notable point of contention relates to the bill's specific applicability to the City and County of San Francisco, reflecting unique local circumstances under the California Constitution that justify special legislative provisions. While proponents argue this move is necessary to bolster affordable housing efforts in a city facing severe housing shortages, critics may voice concerns about the lack of state reimbursement to local agencies for potential lost revenues resulting from the implementation of these exemptions. The bill creates a local program without addressing potential fiscal impacts on the surrounding community.