BILL NUMBER: AB 2846	CHAPTERED  09/25/04

	CHAPTER  786
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 24, 2004
	PASSED THE SENATE  AUGUST 19, 2004
	PASSED THE ASSEMBLY  MAY 10, 2004
	AMENDED IN ASSEMBLY  APRIL 28, 2004

INTRODUCED BY   Assembly Member Salinas

                        FEBRUARY 20, 2004

   An act to add Section 402.95 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2846, Salinas.  Property taxation:  assessment:  tax credits.
   Existing property tax law prohibits the assessor, when appraising
property under the income method of appraisal for persons of low and
moderate income that was financed under a specified federal law, from
considering as income certain subsidy payments made by the federal
government to a lender that financed that property.
   This bill would expressly prohibit the assessor, when appraising
any property under the income method of appraisal, from considering
as income the benefit of specified federal and state low-income
housing income tax credits allocated by the California Tax Credit
Allocation Committee.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 402.95 is added to the Revenue and Taxation
Code, to read:
   402.95.  In valuing property under the income method of appraisal,
the assessor shall exclude from income the benefit from federal and
state low-income housing tax credits allocated by the California Tax
Credit Allocation Committee pursuant to Section 42 of the Internal
Revenue Code and Sections 12206, 17058, and 23610.5.