| 1 | 1 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1243Introduced by Assembly Member EssayliFebruary 16, 2023 An act to amend Section 202 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTAB 1243, as introduced, Essayli. Property taxation: exemptions.The California Constitution provides that all property is taxable, and requires that it be assessed at the same percentage of fair market value, unless otherwise provided by the California Constitution or federal law. The California Constitution exempts from taxation, among other types of property, growing crops, property used for free public libraries and free museums, property used exclusively for public schools, community colleges, state colleges, and state universities, and property belonging to the state or a local government.Existing property tax law provides that these exemptions are as specified in the California Constitution, except as otherwise provided under certain other provisions of the California Constitution.This bill would make nonsubstantive changes to the statutory provisions implementing those exemptions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 202 of the Revenue and Taxation Code is amended to read:202. (a) The exemption of the following property is as specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article XIII of the California Constitution, except as otherwise provided in subdivision (a) of Section 11 thereof: of Article XIII of the California Constitution:(1) Growing crops.(2) Property used for free public libraries and free museums.(3) Property used exclusively for public schools, community colleges, state colleges, and state universities, including the University of California.(4) Property belonging to this state, a county, or a city. Property belonging to the State Compensation Insurance Fund is not property belonging to this state.(b) (1) The exemption described in paragraph (3) of subdivision (a) shall apply to off-campus facilities owned or leased by an apprenticeship program sponsor, if such those facilities are used exclusively by the public schools for classes of related and supplemental instruction for apprentices or trainees which are conducted by the public schools under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(2) The exemption described in paragraph (3) of subdivision (a) shall apply to an interest in property, including a possessory interest as defined in Section 107, belonging to the state, a county, a city, a school district, a community college district, or any combination thereof, that is used to provide rental housing for employees of one or more public school districts or community college districts.(c) Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the California Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is:(1) Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with such an educational institution, and(2) Is primarily Primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income. This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstores gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of such bookstore property on which a property tax can be levied. At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organizations most recent tax return filed with the Internal Revenue Service. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1243Introduced by Assembly Member EssayliFebruary 16, 2023 An act to amend Section 202 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTAB 1243, as introduced, Essayli. Property taxation: exemptions.The California Constitution provides that all property is taxable, and requires that it be assessed at the same percentage of fair market value, unless otherwise provided by the California Constitution or federal law. The California Constitution exempts from taxation, among other types of property, growing crops, property used for free public libraries and free museums, property used exclusively for public schools, community colleges, state colleges, and state universities, and property belonging to the state or a local government.Existing property tax law provides that these exemptions are as specified in the California Constitution, except as otherwise provided under certain other provisions of the California Constitution.This bill would make nonsubstantive changes to the statutory provisions implementing those exemptions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill |
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| 13 | 13 | | No. 1243 |
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| 15 | 15 | | Introduced by Assembly Member EssayliFebruary 16, 2023 |
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| 17 | 17 | | Introduced by Assembly Member Essayli |
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| 18 | 18 | | February 16, 2023 |
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| 19 | 19 | | |
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| 20 | 20 | | An act to amend Section 202 of the Revenue and Taxation Code, relating to taxation. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 1243, as introduced, Essayli. Property taxation: exemptions. |
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| 27 | 27 | | |
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| 28 | 28 | | The California Constitution provides that all property is taxable, and requires that it be assessed at the same percentage of fair market value, unless otherwise provided by the California Constitution or federal law. The California Constitution exempts from taxation, among other types of property, growing crops, property used for free public libraries and free museums, property used exclusively for public schools, community colleges, state colleges, and state universities, and property belonging to the state or a local government.Existing property tax law provides that these exemptions are as specified in the California Constitution, except as otherwise provided under certain other provisions of the California Constitution.This bill would make nonsubstantive changes to the statutory provisions implementing those exemptions. |
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| 30 | 30 | | The California Constitution provides that all property is taxable, and requires that it be assessed at the same percentage of fair market value, unless otherwise provided by the California Constitution or federal law. The California Constitution exempts from taxation, among other types of property, growing crops, property used for free public libraries and free museums, property used exclusively for public schools, community colleges, state colleges, and state universities, and property belonging to the state or a local government. |
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| 32 | 32 | | Existing property tax law provides that these exemptions are as specified in the California Constitution, except as otherwise provided under certain other provisions of the California Constitution. |
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| 33 | 33 | | |
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| 34 | 34 | | This bill would make nonsubstantive changes to the statutory provisions implementing those exemptions. |
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| 35 | 35 | | |
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| 36 | 36 | | ## Digest Key |
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| 37 | 37 | | |
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| 38 | 38 | | ## Bill Text |
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| 40 | 40 | | The people of the State of California do enact as follows:SECTION 1. Section 202 of the Revenue and Taxation Code is amended to read:202. (a) The exemption of the following property is as specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article XIII of the California Constitution, except as otherwise provided in subdivision (a) of Section 11 thereof: of Article XIII of the California Constitution:(1) Growing crops.(2) Property used for free public libraries and free museums.(3) Property used exclusively for public schools, community colleges, state colleges, and state universities, including the University of California.(4) Property belonging to this state, a county, or a city. Property belonging to the State Compensation Insurance Fund is not property belonging to this state.(b) (1) The exemption described in paragraph (3) of subdivision (a) shall apply to off-campus facilities owned or leased by an apprenticeship program sponsor, if such those facilities are used exclusively by the public schools for classes of related and supplemental instruction for apprentices or trainees which are conducted by the public schools under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(2) The exemption described in paragraph (3) of subdivision (a) shall apply to an interest in property, including a possessory interest as defined in Section 107, belonging to the state, a county, a city, a school district, a community college district, or any combination thereof, that is used to provide rental housing for employees of one or more public school districts or community college districts.(c) Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the California Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is:(1) Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with such an educational institution, and(2) Is primarily Primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income. This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstores gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of such bookstore property on which a property tax can be levied. At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organizations most recent tax return filed with the Internal Revenue Service. |
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| 42 | 42 | | The people of the State of California do enact as follows: |
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| 44 | 44 | | ## The people of the State of California do enact as follows: |
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| 46 | 46 | | SECTION 1. Section 202 of the Revenue and Taxation Code is amended to read:202. (a) The exemption of the following property is as specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article XIII of the California Constitution, except as otherwise provided in subdivision (a) of Section 11 thereof: of Article XIII of the California Constitution:(1) Growing crops.(2) Property used for free public libraries and free museums.(3) Property used exclusively for public schools, community colleges, state colleges, and state universities, including the University of California.(4) Property belonging to this state, a county, or a city. Property belonging to the State Compensation Insurance Fund is not property belonging to this state.(b) (1) The exemption described in paragraph (3) of subdivision (a) shall apply to off-campus facilities owned or leased by an apprenticeship program sponsor, if such those facilities are used exclusively by the public schools for classes of related and supplemental instruction for apprentices or trainees which are conducted by the public schools under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(2) The exemption described in paragraph (3) of subdivision (a) shall apply to an interest in property, including a possessory interest as defined in Section 107, belonging to the state, a county, a city, a school district, a community college district, or any combination thereof, that is used to provide rental housing for employees of one or more public school districts or community college districts.(c) Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the California Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is:(1) Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with such an educational institution, and(2) Is primarily Primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income. This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstores gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of such bookstore property on which a property tax can be levied. At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organizations most recent tax return filed with the Internal Revenue Service. |
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| 48 | 48 | | SECTION 1. Section 202 of the Revenue and Taxation Code is amended to read: |
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| 50 | 50 | | ### SECTION 1. |
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| 51 | 51 | | |
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| 52 | 52 | | 202. (a) The exemption of the following property is as specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article XIII of the California Constitution, except as otherwise provided in subdivision (a) of Section 11 thereof: of Article XIII of the California Constitution:(1) Growing crops.(2) Property used for free public libraries and free museums.(3) Property used exclusively for public schools, community colleges, state colleges, and state universities, including the University of California.(4) Property belonging to this state, a county, or a city. Property belonging to the State Compensation Insurance Fund is not property belonging to this state.(b) (1) The exemption described in paragraph (3) of subdivision (a) shall apply to off-campus facilities owned or leased by an apprenticeship program sponsor, if such those facilities are used exclusively by the public schools for classes of related and supplemental instruction for apprentices or trainees which are conducted by the public schools under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(2) The exemption described in paragraph (3) of subdivision (a) shall apply to an interest in property, including a possessory interest as defined in Section 107, belonging to the state, a county, a city, a school district, a community college district, or any combination thereof, that is used to provide rental housing for employees of one or more public school districts or community college districts.(c) Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the California Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is:(1) Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with such an educational institution, and(2) Is primarily Primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income. This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstores gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of such bookstore property on which a property tax can be levied. At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organizations most recent tax return filed with the Internal Revenue Service. |
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| 54 | 54 | | 202. (a) The exemption of the following property is as specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article XIII of the California Constitution, except as otherwise provided in subdivision (a) of Section 11 thereof: of Article XIII of the California Constitution:(1) Growing crops.(2) Property used for free public libraries and free museums.(3) Property used exclusively for public schools, community colleges, state colleges, and state universities, including the University of California.(4) Property belonging to this state, a county, or a city. Property belonging to the State Compensation Insurance Fund is not property belonging to this state.(b) (1) The exemption described in paragraph (3) of subdivision (a) shall apply to off-campus facilities owned or leased by an apprenticeship program sponsor, if such those facilities are used exclusively by the public schools for classes of related and supplemental instruction for apprentices or trainees which are conducted by the public schools under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(2) The exemption described in paragraph (3) of subdivision (a) shall apply to an interest in property, including a possessory interest as defined in Section 107, belonging to the state, a county, a city, a school district, a community college district, or any combination thereof, that is used to provide rental housing for employees of one or more public school districts or community college districts.(c) Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the California Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is:(1) Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with such an educational institution, and(2) Is primarily Primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income. This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstores gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of such bookstore property on which a property tax can be levied. At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organizations most recent tax return filed with the Internal Revenue Service. |
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| 56 | 56 | | 202. (a) The exemption of the following property is as specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article XIII of the California Constitution, except as otherwise provided in subdivision (a) of Section 11 thereof: of Article XIII of the California Constitution:(1) Growing crops.(2) Property used for free public libraries and free museums.(3) Property used exclusively for public schools, community colleges, state colleges, and state universities, including the University of California.(4) Property belonging to this state, a county, or a city. Property belonging to the State Compensation Insurance Fund is not property belonging to this state.(b) (1) The exemption described in paragraph (3) of subdivision (a) shall apply to off-campus facilities owned or leased by an apprenticeship program sponsor, if such those facilities are used exclusively by the public schools for classes of related and supplemental instruction for apprentices or trainees which are conducted by the public schools under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(2) The exemption described in paragraph (3) of subdivision (a) shall apply to an interest in property, including a possessory interest as defined in Section 107, belonging to the state, a county, a city, a school district, a community college district, or any combination thereof, that is used to provide rental housing for employees of one or more public school districts or community college districts.(c) Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the California Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is:(1) Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with such an educational institution, and(2) Is primarily Primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income. This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstores gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of such bookstore property on which a property tax can be levied. At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organizations most recent tax return filed with the Internal Revenue Service. |
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| 60 | 60 | | 202. (a) The exemption of the following property is as specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article XIII of the California Constitution, except as otherwise provided in subdivision (a) of Section 11 thereof: of Article XIII of the California Constitution: |
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| 62 | 62 | | (1) Growing crops. |
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| 64 | 64 | | (2) Property used for free public libraries and free museums. |
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| 66 | 66 | | (3) Property used exclusively for public schools, community colleges, state colleges, and state universities, including the University of California. |
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| 68 | 68 | | (4) Property belonging to this state, a county, or a city. Property belonging to the State Compensation Insurance Fund is not property belonging to this state. |
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| 70 | 70 | | (b) (1) The exemption described in paragraph (3) of subdivision (a) shall apply to off-campus facilities owned or leased by an apprenticeship program sponsor, if such those facilities are used exclusively by the public schools for classes of related and supplemental instruction for apprentices or trainees which are conducted by the public schools under Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code. |
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| 72 | 72 | | (2) The exemption described in paragraph (3) of subdivision (a) shall apply to an interest in property, including a possessory interest as defined in Section 107, belonging to the state, a county, a city, a school district, a community college district, or any combination thereof, that is used to provide rental housing for employees of one or more public school districts or community college districts. |
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| 74 | 74 | | (c) Without prejudice to the right to assert an exemption otherwise available under subdivision (a), (d), or (e) of Section 3 of Article XIII of the California Constitution, a property tax under this division shall be imposed upon that portion of the bookstore property determined to be generating the unrelated business taxable income, as defined in Section 512 of the Internal Revenue Code, to the extent property is: |
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| 76 | 76 | | (1) Owned by an educational institution of collegiate grade or used by a nonprofit corporation operating a student bookstore affiliated with such an educational institution, and |
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| 78 | 78 | | (2) Is primarily Primarily devoted to bookstore use that produces income that is taxable as unrelated business taxable income. |
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| 80 | 80 | | This tax shall be determined by establishing a ratio of the unrelated business taxable income to the bookstores gross income as defined by the Internal Revenue Code. That percent shall be the maximum percentage of such bookstore property on which a property tax can be levied. |
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| 82 | 82 | | At the end of a fiscal year when unrelated business income has been generated, the nonprofit organization shall file with the assessor copies of the organizations most recent tax return filed with the Internal Revenue Service. |
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