BILL NUMBER: AB 1341 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 28, 2010
AMENDED IN ASSEMBLY APRIL 2, 2009
INTRODUCED BY Assembly Member Saldana
Bonnie Lowenthal
FEBRUARY 27, 2009
An act to amend Section 276 of the Revenue and Taxation
Code, An act relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1341, as amended, Saldana Bonnie
Lowenthal . Taxation: disabled veterans' exemption.
Property taxation: possessory interests: Long Beach
Courthouse.
Existing property tax law requires that all property subject to
tax be assessed at its full value, and includes certain possessory
interests among those property interests subject to tax. Existing
property tax law defines a taxable possessory interest to be a use
that is independent, durable, and exclusive.
This bill would clarify that, for purposes of the definition of a
taxable possessory interest, a possession or use is not independent
if it is pursuant to a project agreement and related agreements
entered into by the Judicial Council with a nongovernmental entity,
as specified, for the purpose of replacing the Long Beach Courthouse,
if specified criteria are met. This bill would state that its
provisions are declaratory of existing law.
This bill would make legislative findings and declarations as to
the necessity of a special statute.
Existing property tax law provides, pursuant to the authorization
of the California Constitution, for the exemption from property
taxation of specified amounts of the assessed value of the home of a
disabled veteran, or a veteran's spouse in the case in which the
person has, as a result of a service-connected disease or injury,
died while on active duty in military service.
This bill would correct an erroneous cross reference and remove
obsolete references to prior exemption amounts.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) The existing courthouse located on 415 West Ocean Boulevard in
the city of Long Beach is in unsatisfactory physical condition, is a
potential public safety risk to court staff and the public, and is
in need of immediate replacement.
(b) This act is intended to expedite the facility's replacement by
resolving a disputed property tax issue that could potentially delay
the replacement project and add an element of unpredictable
financial risk to the project's public sponsor.
(c) It is the intent of the Legislature in enacting this act to
provide legislative direction to county assessors, the State Board of
Equalization, the courts, and other involved parties regarding the
interpretation of the term "independent" as it relates to the Long
Beach Courthouse.
(d) This act does not constitute a change in, but is declaratory
of, existing law. Therefore, no state law, including, but not limited
to, Section 8 of Article XVI of the California Constitution,
requires reimbursement to any entity for any ad valorem property tax
revenue losses that may result from this act.
SEC. 2. (a) For purposes of paragraph (1) of
subdivision (a) of Section 107 of the Revenue and Taxation Code,
there is no independent possession or use of land or improvements if
that possession or use is pursuant to a project agreement and related
agreements entered into by the Judicial Council with a
nongovernmental entity in accordance with Section 70391.5 of the
Government Code for the purpose of replacing the Long Beach
Courthouse, if all of the following criteria are met:
(1) The nongovernmental entity is required to design, build,
finance, operate, and maintain the Long Beach Courthouse.
(2) The Judicial Council establishes performance expectations and
benchmark criteria for the court facility proposal in accordance with
Section 70391.5 of the Government Code that serve as the basis for
the selection of the nongovernmental entity.
(3) The Judicial Council and other governmental entities have
exclusive use and control of the Long Beach Courthouse land and
improvements for court and related activities for a term of 35 years.
(4) The Judicial Council holds title to the land and improvements
of the Long Beach Courthouse.
(5) The nongovernmental entity is not treated as the owner of the
improvements of the Long Beach Courthouse for any purpose, including
federal income tax purposes, and does not take as a deduction any
depreciation on the improvements.
(6) Any lease-leaseback of land and improvements of the Long Beach
Courthouse with the nongovernmental entity is solely for the purpose
of providing security for the payment by the Judicial Council of the
service fee for services provided by the nongovernmental entity in
connection with a court facility.
(b) This section shall not apply to any lease of, or improvements
to, the Long Beach Courthouse by the Judicial Council with a
nongovernmental entity to the extent the land or improvements are
used by the nongovernmental entity as commercial office space, retail
space, or paid parking spaces not designated for use for
governmental purposes or court facilities.
SEC. 3. The Legislature finds and declares that a
special law is necessary and that a general law cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution because of the need to resolve the property
tax issues potentially delaying the Long Beach Courthouse replacement
project and to mitigate the attendant risks of that delay to the
citizens of the County of Los Angeles and the State of California.
SECTION 1. Section 276 of the Revenue and
Taxation Code is amended to read:
276. (a) Except as otherwise provided by subdivision (b), for
property for which the disabled veterans' exemption described in
Section 205.5 was available, but for which a timely claim was not
filed, a partial exemption shall be applied in accordance with
whichever of the following is applicable:
(1) Ninety percent of any tax, including any interest or penalty
thereon, levied upon that portion of the assessed value of the
property that would have been exempt under a timely and appropriate
claim shall be canceled or refunded, provided that an appropriate
claim for exemption is filed after 5 p.m. on February 15 of the
calendar year in which the fiscal year begins but on or before the
following December 10.
(2) If an appropriate claim for exemption is filed after the time
period specified in paragraph (1), 85 percent of that portion of any
tax, including any interest or penalty thereon, that was levied upon
that portion of the assessed value of the property that would have
been exempt under a timely and appropriate claim, shall be canceled
or refunded. Cancellations made under this paragraph are subject to
the provisions of Article 1 (commencing with Section 4985) of Chapter
4 of Part 9. Refunds issued under this paragraph are subject to the
limitations periods on refunds as described in Article 1 (commencing
with Section 5096) of Chapter 5 of Part 9.
(b) If a late-filed claim for the
one-hundred-fifty-thousand-dollar ($150,000) exemption is filed in
conjunction with a timely filed claim for the
one-hundred-thousand-dollar ($100,000) exemption, the amount of any
exemption allowed under the late-filed claim under subdivision (a)
shall be determined on the basis of that portion of the exemption
amount, otherwise available under subdivision (a), that exceeds one
hundred thousand dollars ($100,000), as applicable.
(c) For those claims filed pursuant to subdivision (a) after
November 15, the exemption under that subdivision may be applied to
the second installment. If that exemption is so applied, the first
installment is still delinquent on December 10, and is subject to
delinquent penalties provided for in this division if that
installment is not timely paid. A refund shall be made to the
taxpayer upon a claim submitted to the auditor if the exemption is
applied to the second installment and either of the following is
true:
(1) Both installments are paid on or before December 10.
(2) The reduction in taxes resulting from the exemption exceeds
the amount of taxes due on the second installment.