BILL NUMBER: AB 1341 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 18, 2010
PASSED THE ASSEMBLY AUGUST 27, 2010
AMENDED IN SENATE AUGUST 2, 2010
AMENDED IN SENATE JUNE 28, 2010
AMENDED IN ASSEMBLY APRIL 2, 2009
INTRODUCED BY Assembly Member Bonnie Lowenthal
FEBRUARY 27, 2009
An act relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1341, Bonnie Lowenthal. 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 provide 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 make legislative findings and declarations as to
the necessity of a special statute.
Section 2229 of the Revenue and Taxation Code requires the
Legislature 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 Section 2229 of the
Revenue and Taxation Code, 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.
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.
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.
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 revenue lost by it
pursuant to this act.
SEC. 5. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.