CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 723Introduced by Assembly Members Wicks and BontaFebruary 19, 2019 An act to amend Section 236 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 723, as introduced, Wicks. Property taxation: exemption: leased rental housing.Existing property tax law, in accordance with authorization provided by the California Constitution, provides a welfare exemption for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met. Existing property tax law additionally exempts from taxation on the possessory and fee interest property that is leased for 35 years or more, if the lessor is not otherwise qualified for the welfare exemption and the property is used exclusively and solely for rental housing and related facilities for low-income tenants, as provided, and leased and operated by specified entities.This bill, for lien dates occurring on and after January 1, 2020, would extend this latter exemption to property that otherwise meets the above-described requirements but is rented for no more than 30% of the income level of persons of low income, as defined, to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of the tenants. The bill would require that each new tenant occupying the property after the initial application for exemption pursuant to these provisions meet the above-described income restrictions at the time of that tenants initial occupancy.By adding to the duties of local tax officials, 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 236 of the Revenue and Taxation Code is amended to read:236. (a) Property leased for a term of 35 years or more or any transfer of property leased with a remaining term of 35 years or more where the lessor is not otherwise qualified for a tax exemption pursuant to Section 214, which is used exclusively and solely for rental housing and related facilities for tenants who are persons of low income (as defined in Section 50093 of the Health and Safety Code), or is restricted to certain rents as provided in subdivision (b), and is leased and operated by religious, hospital, scientific, or charitable funds, foundations or corporations, public housing authorities, public agencies, or limited partnerships in which the managing general partner has received a determination that it is a charitable organization under Section 501(c)(3) of the Internal Revenue Code and is operating the property in accordance with its exempt purpose is exempt from taxation on the possessory interest and the fee interest in the property throughout the term of the lease.(b) For lien dates occurring on and after January 1, 2020, property that otherwise meets the requirements of subdivision (a) shall be eligible for the exemption provided by this section if it is rented for no more than 30 percent of the income level of persons of low income (as defined in Section 50093 of the Health and Safety Code) to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of those tenants. Each new tenant occupying the property after the initial application for exemption pursuant to this subdivision shall meet the income restrictions specified in subdivision (a) at the time of that tenants initial occupancy. Subsequent to the initial occupancy of each tenant, qualification of the property for exemption under this subdivision shall be based on the rents set in the amount specified in this subdivision.Low- and moderate-income(c) As used in this section, low- and moderate-income has the same meaning as the term persons and families of low- and moderate-income as defined by Section 50093 of the Health and Safety Code.SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 723Introduced by Assembly Members Wicks and BontaFebruary 19, 2019 An act to amend Section 236 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 723, as introduced, Wicks. Property taxation: exemption: leased rental housing.Existing property tax law, in accordance with authorization provided by the California Constitution, provides a welfare exemption for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met. Existing property tax law additionally exempts from taxation on the possessory and fee interest property that is leased for 35 years or more, if the lessor is not otherwise qualified for the welfare exemption and the property is used exclusively and solely for rental housing and related facilities for low-income tenants, as provided, and leased and operated by specified entities.This bill, for lien dates occurring on and after January 1, 2020, would extend this latter exemption to property that otherwise meets the above-described requirements but is rented for no more than 30% of the income level of persons of low income, as defined, to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of the tenants. The bill would require that each new tenant occupying the property after the initial application for exemption pursuant to these provisions meet the above-described income restrictions at the time of that tenants initial occupancy.By adding to the duties of local tax officials, 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 723
Introduced by Assembly Members Wicks and BontaFebruary 19, 2019
Introduced by Assembly Members Wicks and Bonta
February 19, 2019
An act to amend Section 236 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 723, as introduced, Wicks. Property taxation: exemption: leased rental housing.
Existing property tax law, in accordance with authorization provided by the California Constitution, provides a welfare exemption for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met. Existing property tax law additionally exempts from taxation on the possessory and fee interest property that is leased for 35 years or more, if the lessor is not otherwise qualified for the welfare exemption and the property is used exclusively and solely for rental housing and related facilities for low-income tenants, as provided, and leased and operated by specified entities.This bill, for lien dates occurring on and after January 1, 2020, would extend this latter exemption to property that otherwise meets the above-described requirements but is rented for no more than 30% of the income level of persons of low income, as defined, to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of the tenants. The bill would require that each new tenant occupying the property after the initial application for exemption pursuant to these provisions meet the above-described income restrictions at the time of that tenants initial occupancy.By adding to the duties of local tax officials, 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.
Existing property tax law, in accordance with authorization provided by the California Constitution, provides a welfare exemption for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met. Existing property tax law additionally exempts from taxation on the possessory and fee interest property that is leased for 35 years or more, if the lessor is not otherwise qualified for the welfare exemption and the property is used exclusively and solely for rental housing and related facilities for low-income tenants, as provided, and leased and operated by specified entities.
This bill, for lien dates occurring on and after January 1, 2020, would extend this latter exemption to property that otherwise meets the above-described requirements but is rented for no more than 30% of the income level of persons of low income, as defined, to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of the tenants. The bill would require that each new tenant occupying the property after the initial application for exemption pursuant to these provisions meet the above-described income restrictions at the time of that tenants initial occupancy.
By adding to the duties of local tax officials, 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.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 236 of the Revenue and Taxation Code is amended to read:236. (a) Property leased for a term of 35 years or more or any transfer of property leased with a remaining term of 35 years or more where the lessor is not otherwise qualified for a tax exemption pursuant to Section 214, which is used exclusively and solely for rental housing and related facilities for tenants who are persons of low income (as defined in Section 50093 of the Health and Safety Code), or is restricted to certain rents as provided in subdivision (b), and is leased and operated by religious, hospital, scientific, or charitable funds, foundations or corporations, public housing authorities, public agencies, or limited partnerships in which the managing general partner has received a determination that it is a charitable organization under Section 501(c)(3) of the Internal Revenue Code and is operating the property in accordance with its exempt purpose is exempt from taxation on the possessory interest and the fee interest in the property throughout the term of the lease.(b) For lien dates occurring on and after January 1, 2020, property that otherwise meets the requirements of subdivision (a) shall be eligible for the exemption provided by this section if it is rented for no more than 30 percent of the income level of persons of low income (as defined in Section 50093 of the Health and Safety Code) to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of those tenants. Each new tenant occupying the property after the initial application for exemption pursuant to this subdivision shall meet the income restrictions specified in subdivision (a) at the time of that tenants initial occupancy. Subsequent to the initial occupancy of each tenant, qualification of the property for exemption under this subdivision shall be based on the rents set in the amount specified in this subdivision.Low- and moderate-income(c) As used in this section, low- and moderate-income has the same meaning as the term persons and families of low- and moderate-income as defined by Section 50093 of the Health and Safety Code.SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 236 of the Revenue and Taxation Code is amended to read:236. (a) Property leased for a term of 35 years or more or any transfer of property leased with a remaining term of 35 years or more where the lessor is not otherwise qualified for a tax exemption pursuant to Section 214, which is used exclusively and solely for rental housing and related facilities for tenants who are persons of low income (as defined in Section 50093 of the Health and Safety Code), or is restricted to certain rents as provided in subdivision (b), and is leased and operated by religious, hospital, scientific, or charitable funds, foundations or corporations, public housing authorities, public agencies, or limited partnerships in which the managing general partner has received a determination that it is a charitable organization under Section 501(c)(3) of the Internal Revenue Code and is operating the property in accordance with its exempt purpose is exempt from taxation on the possessory interest and the fee interest in the property throughout the term of the lease.(b) For lien dates occurring on and after January 1, 2020, property that otherwise meets the requirements of subdivision (a) shall be eligible for the exemption provided by this section if it is rented for no more than 30 percent of the income level of persons of low income (as defined in Section 50093 of the Health and Safety Code) to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of those tenants. Each new tenant occupying the property after the initial application for exemption pursuant to this subdivision shall meet the income restrictions specified in subdivision (a) at the time of that tenants initial occupancy. Subsequent to the initial occupancy of each tenant, qualification of the property for exemption under this subdivision shall be based on the rents set in the amount specified in this subdivision.Low- and moderate-income(c) As used in this section, low- and moderate-income has the same meaning as the term persons and families of low- and moderate-income as defined by Section 50093 of the Health and Safety Code.
SECTION 1. Section 236 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
236. (a) Property leased for a term of 35 years or more or any transfer of property leased with a remaining term of 35 years or more where the lessor is not otherwise qualified for a tax exemption pursuant to Section 214, which is used exclusively and solely for rental housing and related facilities for tenants who are persons of low income (as defined in Section 50093 of the Health and Safety Code), or is restricted to certain rents as provided in subdivision (b), and is leased and operated by religious, hospital, scientific, or charitable funds, foundations or corporations, public housing authorities, public agencies, or limited partnerships in which the managing general partner has received a determination that it is a charitable organization under Section 501(c)(3) of the Internal Revenue Code and is operating the property in accordance with its exempt purpose is exempt from taxation on the possessory interest and the fee interest in the property throughout the term of the lease.(b) For lien dates occurring on and after January 1, 2020, property that otherwise meets the requirements of subdivision (a) shall be eligible for the exemption provided by this section if it is rented for no more than 30 percent of the income level of persons of low income (as defined in Section 50093 of the Health and Safety Code) to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of those tenants. Each new tenant occupying the property after the initial application for exemption pursuant to this subdivision shall meet the income restrictions specified in subdivision (a) at the time of that tenants initial occupancy. Subsequent to the initial occupancy of each tenant, qualification of the property for exemption under this subdivision shall be based on the rents set in the amount specified in this subdivision.Low- and moderate-income(c) As used in this section, low- and moderate-income has the same meaning as the term persons and families of low- and moderate-income as defined by Section 50093 of the Health and Safety Code.
236. (a) Property leased for a term of 35 years or more or any transfer of property leased with a remaining term of 35 years or more where the lessor is not otherwise qualified for a tax exemption pursuant to Section 214, which is used exclusively and solely for rental housing and related facilities for tenants who are persons of low income (as defined in Section 50093 of the Health and Safety Code), or is restricted to certain rents as provided in subdivision (b), and is leased and operated by religious, hospital, scientific, or charitable funds, foundations or corporations, public housing authorities, public agencies, or limited partnerships in which the managing general partner has received a determination that it is a charitable organization under Section 501(c)(3) of the Internal Revenue Code and is operating the property in accordance with its exempt purpose is exempt from taxation on the possessory interest and the fee interest in the property throughout the term of the lease.(b) For lien dates occurring on and after January 1, 2020, property that otherwise meets the requirements of subdivision (a) shall be eligible for the exemption provided by this section if it is rented for no more than 30 percent of the income level of persons of low income (as defined in Section 50093 of the Health and Safety Code) to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of those tenants. Each new tenant occupying the property after the initial application for exemption pursuant to this subdivision shall meet the income restrictions specified in subdivision (a) at the time of that tenants initial occupancy. Subsequent to the initial occupancy of each tenant, qualification of the property for exemption under this subdivision shall be based on the rents set in the amount specified in this subdivision.Low- and moderate-income(c) As used in this section, low- and moderate-income has the same meaning as the term persons and families of low- and moderate-income as defined by Section 50093 of the Health and Safety Code.
236. (a) Property leased for a term of 35 years or more or any transfer of property leased with a remaining term of 35 years or more where the lessor is not otherwise qualified for a tax exemption pursuant to Section 214, which is used exclusively and solely for rental housing and related facilities for tenants who are persons of low income (as defined in Section 50093 of the Health and Safety Code), or is restricted to certain rents as provided in subdivision (b), and is leased and operated by religious, hospital, scientific, or charitable funds, foundations or corporations, public housing authorities, public agencies, or limited partnerships in which the managing general partner has received a determination that it is a charitable organization under Section 501(c)(3) of the Internal Revenue Code and is operating the property in accordance with its exempt purpose is exempt from taxation on the possessory interest and the fee interest in the property throughout the term of the lease.(b) For lien dates occurring on and after January 1, 2020, property that otherwise meets the requirements of subdivision (a) shall be eligible for the exemption provided by this section if it is rented for no more than 30 percent of the income level of persons of low income (as defined in Section 50093 of the Health and Safety Code) to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of those tenants. Each new tenant occupying the property after the initial application for exemption pursuant to this subdivision shall meet the income restrictions specified in subdivision (a) at the time of that tenants initial occupancy. Subsequent to the initial occupancy of each tenant, qualification of the property for exemption under this subdivision shall be based on the rents set in the amount specified in this subdivision.Low- and moderate-income(c) As used in this section, low- and moderate-income has the same meaning as the term persons and families of low- and moderate-income as defined by Section 50093 of the Health and Safety Code.
236. (a) Property leased for a term of 35 years or more or any transfer of property leased with a remaining term of 35 years or more where the lessor is not otherwise qualified for a tax exemption pursuant to Section 214, which is used exclusively and solely for rental housing and related facilities for tenants who are persons of low income (as defined in Section 50093 of the Health and Safety Code), or is restricted to certain rents as provided in subdivision (b), and is leased and operated by religious, hospital, scientific, or charitable funds, foundations or corporations, public housing authorities, public agencies, or limited partnerships in which the managing general partner has received a determination that it is a charitable organization under Section 501(c)(3) of the Internal Revenue Code and is operating the property in accordance with its exempt purpose is exempt from taxation on the possessory interest and the fee interest in the property throughout the term of the lease.
(b) For lien dates occurring on and after January 1, 2020, property that otherwise meets the requirements of subdivision (a) shall be eligible for the exemption provided by this section if it is rented for no more than 30 percent of the income level of persons of low income (as defined in Section 50093 of the Health and Safety Code) to tenants occupying the property at the initial application for tax exemption, regardless of the actual income of those tenants. Each new tenant occupying the property after the initial application for exemption pursuant to this subdivision shall meet the income restrictions specified in subdivision (a) at the time of that tenants initial occupancy. Subsequent to the initial occupancy of each tenant, qualification of the property for exemption under this subdivision shall be based on the rents set in the amount specified in this subdivision.
Low- and moderate-income
(c) As used in this section, low- and moderate-income has the same meaning as the term persons and families of low- and moderate-income as defined by Section 50093 of the Health and Safety Code.
SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
### SEC. 2.
SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
### SEC. 3.
SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
### SEC. 4.