Amended IN Assembly March 23, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1492Introduced by Assembly Member AlvarezFebruary 17, 2023 An act to add Section 214.15.3 to the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 1492, as amended, Alvarez. Taxation: welfare exemption. Property taxation: welfare exemption: nonprofit corporation: affordable housing cost.Existing property tax law, in accordance with the California Constitution, provides for 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 states that property is within that welfare exemption if the property is owned and operated by a nonprofit corporation, otherwise qualifying for the welfare exemption, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residences for sale at cost to low-income families, with financing in the form of a zero interest rate loan and without regard to religion, race, national origin, or the sex of the head of household.This bill would provide, for property tax lien dates occurring on or after January 1, 2024, that property is exempt from taxation and is within the welfare exemption if that property is owned and operated by a nonprofit corporation, as described, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost and if at least one residential unit on the property is subject to an agreement that requires the unit to be made available at an affordable cost to buyers or renters and is recorded with the appropriate local agency. The bill would provide that the exemption shall be equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the aforementioned specifications represents of the total number of residential units available for rent or sale on the property. By adding to the duties of local tax officials, the bill would impose a state-mandated local program.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 state the intent of the Legislature to comply with those provisions.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.Pursuant to constitutional authorization, existing property tax law provides a welfare exemption, pursuant to which property used exclusively for religious, hospital, scientific, or charitable purposes owned and operated by specified types of entities is exempt from taxation if it meets certain criteria, including that the property is used for the actual operation of the exempt activity, and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose.This bill would state the intent of the Legislature to enact legislation that would expand the welfare tax exemption for housing developments.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 214.15.3 is added to the Revenue and Taxation Code, to read:214.15.3. (a) Property shall be partially or fully exempt from property taxation, pursuant to the formula in subdivision (b), and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if both of the following are satisfied:(1) The property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost.(2) At least one residential unit on the property is subject to an agreement that requires the unit to be made at an affordable cost to buyers or renters and that agreement is recorded with the appropriate local agency.(b) A property eligible for the exemption in subdivision (a) shall receive an exemption from property taxation equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the requirements of paragraph (2) of subdivision (a) represents of the total number of residential units available for rent or sale on the property.(c) This section shall be operative for lien dates occurring on or after January 1, 2024.SEC. 2. It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.SEC. 3. 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. 4. 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. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.It is the intent of the Legislature to enact legislation that would expand the property tax welfare tax exemption for housing developments.
Amended IN Assembly March 23, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 1492Introduced by Assembly Member AlvarezFebruary 17, 2023 An act to add Section 214.15.3 to the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 1492, as amended, Alvarez. Taxation: welfare exemption. Property taxation: welfare exemption: nonprofit corporation: affordable housing cost.Existing property tax law, in accordance with the California Constitution, provides for 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 states that property is within that welfare exemption if the property is owned and operated by a nonprofit corporation, otherwise qualifying for the welfare exemption, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residences for sale at cost to low-income families, with financing in the form of a zero interest rate loan and without regard to religion, race, national origin, or the sex of the head of household.This bill would provide, for property tax lien dates occurring on or after January 1, 2024, that property is exempt from taxation and is within the welfare exemption if that property is owned and operated by a nonprofit corporation, as described, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost and if at least one residential unit on the property is subject to an agreement that requires the unit to be made available at an affordable cost to buyers or renters and is recorded with the appropriate local agency. The bill would provide that the exemption shall be equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the aforementioned specifications represents of the total number of residential units available for rent or sale on the property. By adding to the duties of local tax officials, the bill would impose a state-mandated local program.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 state the intent of the Legislature to comply with those provisions.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.Pursuant to constitutional authorization, existing property tax law provides a welfare exemption, pursuant to which property used exclusively for religious, hospital, scientific, or charitable purposes owned and operated by specified types of entities is exempt from taxation if it meets certain criteria, including that the property is used for the actual operation of the exempt activity, and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose.This bill would state the intent of the Legislature to enact legislation that would expand the welfare tax exemption for housing developments.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES
Amended IN Assembly March 23, 2023
Amended IN Assembly March 23, 2023
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 1492
Introduced by Assembly Member AlvarezFebruary 17, 2023
Introduced by Assembly Member Alvarez
February 17, 2023
An act to add Section 214.15.3 to the Revenue and Taxation Code, relating to taxation. taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1492, as amended, Alvarez. Taxation: welfare exemption. Property taxation: welfare exemption: nonprofit corporation: affordable housing cost.
Existing property tax law, in accordance with the California Constitution, provides for 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 states that property is within that welfare exemption if the property is owned and operated by a nonprofit corporation, otherwise qualifying for the welfare exemption, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residences for sale at cost to low-income families, with financing in the form of a zero interest rate loan and without regard to religion, race, national origin, or the sex of the head of household.This bill would provide, for property tax lien dates occurring on or after January 1, 2024, that property is exempt from taxation and is within the welfare exemption if that property is owned and operated by a nonprofit corporation, as described, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost and if at least one residential unit on the property is subject to an agreement that requires the unit to be made available at an affordable cost to buyers or renters and is recorded with the appropriate local agency. The bill would provide that the exemption shall be equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the aforementioned specifications represents of the total number of residential units available for rent or sale on the property. By adding to the duties of local tax officials, the bill would impose a state-mandated local program.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 state the intent of the Legislature to comply with those provisions.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.Pursuant to constitutional authorization, existing property tax law provides a welfare exemption, pursuant to which property used exclusively for religious, hospital, scientific, or charitable purposes owned and operated by specified types of entities is exempt from taxation if it meets certain criteria, including that the property is used for the actual operation of the exempt activity, and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose.This bill would state the intent of the Legislature to enact legislation that would expand the welfare tax exemption for housing developments.
Existing property tax law, in accordance with the California Constitution, provides for 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 states that property is within that welfare exemption if the property is owned and operated by a nonprofit corporation, otherwise qualifying for the welfare exemption, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residences for sale at cost to low-income families, with financing in the form of a zero interest rate loan and without regard to religion, race, national origin, or the sex of the head of household.
This bill would provide, for property tax lien dates occurring on or after January 1, 2024, that property is exempt from taxation and is within the welfare exemption if that property is owned and operated by a nonprofit corporation, as described, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost and if at least one residential unit on the property is subject to an agreement that requires the unit to be made available at an affordable cost to buyers or renters and is recorded with the appropriate local agency. The bill would provide that the exemption shall be equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the aforementioned specifications represents of the total number of residential units available for rent or sale on the property. By adding to the duties of local tax officials, the bill would impose a state-mandated local program.
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 state the intent of the Legislature to comply with those provisions.
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.
Pursuant to constitutional authorization, existing property tax law provides a welfare exemption, pursuant to which property used exclusively for religious, hospital, scientific, or charitable purposes owned and operated by specified types of entities is exempt from taxation if it meets certain criteria, including that the property is used for the actual operation of the exempt activity, and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose.
This bill would state the intent of the Legislature to enact legislation that would expand the welfare tax exemption for housing developments.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 214.15.3 is added to the Revenue and Taxation Code, to read:214.15.3. (a) Property shall be partially or fully exempt from property taxation, pursuant to the formula in subdivision (b), and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if both of the following are satisfied:(1) The property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost.(2) At least one residential unit on the property is subject to an agreement that requires the unit to be made at an affordable cost to buyers or renters and that agreement is recorded with the appropriate local agency.(b) A property eligible for the exemption in subdivision (a) shall receive an exemption from property taxation equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the requirements of paragraph (2) of subdivision (a) represents of the total number of residential units available for rent or sale on the property.(c) This section shall be operative for lien dates occurring on or after January 1, 2024.SEC. 2. It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.SEC. 3. 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. 4. 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. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.SECTION 1.It is the intent of the Legislature to enact legislation that would expand the property tax welfare tax exemption for housing developments.
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 214.15.3 is added to the Revenue and Taxation Code, to read:214.15.3. (a) Property shall be partially or fully exempt from property taxation, pursuant to the formula in subdivision (b), and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if both of the following are satisfied:(1) The property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost.(2) At least one residential unit on the property is subject to an agreement that requires the unit to be made at an affordable cost to buyers or renters and that agreement is recorded with the appropriate local agency.(b) A property eligible for the exemption in subdivision (a) shall receive an exemption from property taxation equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the requirements of paragraph (2) of subdivision (a) represents of the total number of residential units available for rent or sale on the property.(c) This section shall be operative for lien dates occurring on or after January 1, 2024.
SECTION 1. Section 214.15.3 is added to the Revenue and Taxation Code, to read:
### SECTION 1.
214.15.3. (a) Property shall be partially or fully exempt from property taxation, pursuant to the formula in subdivision (b), and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if both of the following are satisfied:(1) The property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost.(2) At least one residential unit on the property is subject to an agreement that requires the unit to be made at an affordable cost to buyers or renters and that agreement is recorded with the appropriate local agency.(b) A property eligible for the exemption in subdivision (a) shall receive an exemption from property taxation equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the requirements of paragraph (2) of subdivision (a) represents of the total number of residential units available for rent or sale on the property.(c) This section shall be operative for lien dates occurring on or after January 1, 2024.
214.15.3. (a) Property shall be partially or fully exempt from property taxation, pursuant to the formula in subdivision (b), and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if both of the following are satisfied:(1) The property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost.(2) At least one residential unit on the property is subject to an agreement that requires the unit to be made at an affordable cost to buyers or renters and that agreement is recorded with the appropriate local agency.(b) A property eligible for the exemption in subdivision (a) shall receive an exemption from property taxation equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the requirements of paragraph (2) of subdivision (a) represents of the total number of residential units available for rent or sale on the property.(c) This section shall be operative for lien dates occurring on or after January 1, 2024.
214.15.3. (a) Property shall be partially or fully exempt from property taxation, pursuant to the formula in subdivision (b), and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if both of the following are satisfied:(1) The property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost.(2) At least one residential unit on the property is subject to an agreement that requires the unit to be made at an affordable cost to buyers or renters and that agreement is recorded with the appropriate local agency.(b) A property eligible for the exemption in subdivision (a) shall receive an exemption from property taxation equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the requirements of paragraph (2) of subdivision (a) represents of the total number of residential units available for rent or sale on the property.(c) This section shall be operative for lien dates occurring on or after January 1, 2024.
214.15.3. (a) Property shall be partially or fully exempt from property taxation, pursuant to the formula in subdivision (b), and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if both of the following are satisfied:
(1) The property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building or rehabilitating residential units for sale or rent at an affordable cost.
(2) At least one residential unit on the property is subject to an agreement that requires the unit to be made at an affordable cost to buyers or renters and that agreement is recorded with the appropriate local agency.
(b) A property eligible for the exemption in subdivision (a) shall receive an exemption from property taxation equal to the percentage of the value of the property that is equal to the percentage that the number of units meeting the requirements of paragraph (2) of subdivision (a) represents of the total number of residential units available for rent or sale on the property.
(c) This section shall be operative for lien dates occurring on or after January 1, 2024.
SEC. 2. It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
SEC. 2. It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
SEC. 2. It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
### SEC. 2.
SEC. 3. 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. 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. 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.
SEC. 4. 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. 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. 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.
SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
### SEC. 5.
It is the intent of the Legislature to enact legislation that would expand the property tax welfare tax exemption for housing developments.