BILL ANALYSIS Ó
AB 2207
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CONCURRENCE IN SENATE AMENDMENTS
AB 2207 (Gordon)
As Amended July 5, 2012
Majority vote. Tax levy
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|ASSEMBLY: |75-0 |(May 29, 2012) |SENATE: |37-0 |(August 22, |
| | | | | |2012) |
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Original Committee Reference: REV. & TAX.
SUMMARY : Clarifies the scope and application of the welfare
property tax exemption, by providing that certain revenues and
uses of property, which is otherwise dedicated to open-space and
natural resource preservation, will not cause the property to
lose its tax exemption.
The Senate amendments identify and further limit the types of
activities that shall be disregarded by county assessors in
determining whether the property qualifies for the welfare
property tax exemption.
AS PASSED BY THE ASSEMBLY, this bill:
1)Provided that, commencing with the 2013-14 fiscal year (FY),
for purposes of determining whether the property is used for
the actual operation of the exempt activity, consideration
shall not be given to the use of property for the following
activities:
a) Activities resulting in direct or in-kind revenues, but
only if those activities further the conservation
objectives of the property as provided in a qualified
conservation management plan for the property; and,
b) Any lease of the property for a purpose that furthers
the conservation objectives of the property as provided in
a qualified conservation management plan for the property.
2)Stated that the direct or in-kind revenues may include
revenues derived from grazing leases, fees for events or
recreational activities, or fees for permits.
3)Specified that the activities and lease of the property may
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not generate unrelated business income.
4)Defined a "qualified conservation management plan" as a plan
that satisfies all of the following requirements:
a) Identifies that the foremost purpose and use of the
property is for the preservation of native plants or
animals, biotic communities, geological or geographical
formations of scientific or educational interest, or as
open-space lands used solely for recreation and for the
enjoyment of scenic beauty;
b) Identifies the overall conservation management goals,
including identification of permitted activities, and
actions necessary to achieve the goals;
c) Describes the natural resources and recreational
attributes of the property and potential threats to the
conservation values or areas of special concern; and,
d) Contains a timeline for planned management activities
and for regular inspections of the property, including
existing structures and improvements.
5)Became operative beginning with the lien date of the 2013-14
FY.
6)Stated that, if the Commission on State Mandates determines
that this bill contains costs mandated by the state,
reimbursement to local agencies and school districts for those
costs will be made pursuant to Government Code Part 7
(commencing with Section 17500) of Division 4 of Title 2.
7)Provided that 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.
8)Would take effect immediately as a tax levy.
FISCAL EFFECT : According to the Senate Appropriations
Committee, this bill is expected to result in an annual
statewide property tax revenue reduction of approximately
$225,000 (foregone revenues). Assuming 50% of the statewide
property tax revenues offset General Fund (GF) obligations to
schools pursuant to Proposition 98 minimum funding guarantees,
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the GF impact would be approximately $113,000 due to increased
state backfill provided to schools. Staff notes that actual
state impacts may vary as the school share of property tax is
typically in the range of 45% to 60% in most parts of the state.
In addition, the staff estimates minor reimbursable mandate
costs related to the imposition of new duties on local tax
officials since this bill revises the criteria that assessors
would use to determine eligibility for the welfare exemption
that applies to property dedicated to open-space and natural
resource preservation (General Fund).
Analysis Prepared by : Oksana Jaffe / REV. & TAX. / (916)
319-2098
FN: 0005159