Amended in Assembly June 17, 2014

Amended in Senate April 29, 2014

Amended in Senate April 2, 2014

Amended in Senate March 25, 2014

Senate BillNo. 1323


Introduced by Senator Lieu

February 21, 2014


An act to amendbegin delete Sections 75.21, 206.1, 254, 254.5, 255, 257, 257.1, 270, 271, and 276 of the Revenue and Taxation Code, relating to taxation.end deletebegin insert Section 5157 of the Vehicle Code, relating to vehicles, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1323, as amended, Lieu. begin deleteProperty taxation. end deletebegin insertSpecialized license plates: Pet Lover’s License Plate Program.end insert

begin insert

Existing law establishes a specialized license plate program and requires the Department of Motor Vehicles (DMV) to issue specialized license plates to a sponsoring state agency that meets certain requirements. Existing law requires the DMV to charge specified additional fees for the issuance, renewal, or transfer of specialized license plates, and requires that these additional fees, less the DMV’s administrative costs, be deposited in the Specialized License Plate Fund for appropriation and allocation to each sponsoring state agency, as specified.

end insert
begin insert

This bill would require the DMV to deposit the additional fees for a specialty license plate issued under the Pet Lover’s License Plate Program sponsored by the Veterinary Medical Board, or a successor specialty license plate program sponsored by the board, into the Pet Lover’s Specialized License Plate Fund, which the bill would establish. The bill would require that these funds be continuously appropriated to the Veterinary Medical Board for the sole and exclusive purpose of funding grants to providers of no-cost or low-cost animal sterilization services, as specified. By continuously appropriating moneys in the fund to the board, the bill would make an appropriation.

end insert
begin delete

Existing property tax law allows taxes, penalties, and interest imposed for late filings of certain property tax exemption applications to be canceled or refunded in an amount equal to 90% or 85%, as applicable, of any tax, penalty, or interest or any amount of tax, penalty, or interest exceeding $250, whichever is greater.

end delete
begin delete

This bill would instead require 90% of any tax, penalty, or interest resulting from the assessed value of the property or that portion of any amount of tax, penalty, or interest that exceeds $20,000 in total amount, whichever is greater, to be canceled or refunded, provided an appropriate application for exemption is thereafter filed. This bill would require this property tax relief to apply to each claim for exemption filed, and in the case where a claim for exemption is filed for a property location consisting of contiguous parcels, would authorize any tax or penalty or interest thereon resulting from the reduction of the amount of the exemption otherwise available to be applied to a single parcel.

end delete
begin delete

The California Constitution authorizes the Legislature to exempt from taxation property not used for commercial purposes that is reasonably and necessarily required for the parking of vehicles of persons worshiping on exempt land. Pursuant to this constitutional authorization, existing property tax law exempts from tax any real property that is reasonably and necessarily required for the parking of automobiles by persons engaged in religious activities, as specified. Existing property tax law provides that this exemption shall apply to land and improvements that are not owned by a church, religious denomination, or sect using the land and improvements for the parking of automobiles, provided that certain conditions are met, including, among others, that the congregation of the church, religious denomination, or sect is no greater than 500 members.

end delete
begin delete

This bill would modify this exemption to apply to any real property that is required for the parking of vehicles, and would remove the limitation that the congregation of the church, religious denomination, or sect be no greater than 500 members.

end delete
begin delete

Existing property tax law requires applicants for certain property tax exemptions to notify the assessor if the applicant or the property becomes ineligible for the exemption, as specified. Existing property tax law requires a penalty to be assessed for failure to provide this notification to the assessor in an amount not to exceed $250.

end delete
begin delete

This bill would reduce the $250 limitation on the penalty for failure to notify the assessor to $200.

end delete
begin delete

Existing property tax law requires any person claiming certain property tax exemptions and anyone claiming the classification of a vessel as a documented vessel eligible for assessment, as provided, to submit to the assessor annually an affidavit giving any information required by the board. Existing property tax law requires these affidavits to be filed with the assessor between the lien date and 5 p.m. on February 15.

end delete
begin delete

This bill would require the affidavit to be submitted for each property location for which the property tax exemption is sought, and would authorize any person claiming any exemption specified above to submit a single claim for a property location consisting of contiguous parcels. This bill would require an affidavit for the disabled veterans’ exemption to instead be filed with the assessor any time after the claimant becomes eligible but no later than 5 p.m. on February 15, except as otherwise provided.

end delete
begin delete

Existing property tax law requires a claim for certain property tax exemptions to be filed by a specified date with the assessor each year. Existing property tax law does not require applicants granted certain property tax exemptions to reapply for the exemption in any subsequent year in which there has been no change in the title to, or the use of, the property. Existing property tax law requires the assessor to annually mail a notice to every applicant relieved of the requirement of filing an annual application, as specified, which is required to include a card in a specified form, to be returned to the assessor by the applicant desiring to maintain eligibility for the exemption.

end delete
begin delete

This bill would instead require the State Board of Equalization to prescribe the form of the card included with the notice.

end delete
begin delete

By changing the manner in which property tax refunds for late filings of certain property tax exemptions are made by local county officials, this bill would impose a state-mandated local program.

end delete
begin delete

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.

end delete
begin delete

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 these statutory provisions.

end delete
begin delete

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.

end delete
begin delete

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.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

The people of the State of California do enact as follows:

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 5157 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
2read:end insert

3

5157.  

(a) In addition to the regular fees for an original
4registration or renewal of registration, the following additional
5fees shall be paid for the issuance, renewal, or transfer of the
6specialized license plates:

7(1) For the original issuance of the plates, fifty dollars ($50).

8(2) For a renewal of registration with the plates, forty dollars
9($40).

10(3) For transfer of the plates to another vehicle, fifteen dollars
11($15).

12(4) For each substitute replacement plate, thirty-five dollars
13($35).

14(5) In addition, for the issuance of environmental license plates,
15as defined in Section 5103, with a specialized license plate design,
16the additional fees prescribed in Sections 5106 and 5108. The
17additional fees prescribed in Sections 5106 and 5108 shall be
18deposited in the California Environmental License Plate Fund.

19(b) The Gold Star Family specialized license plate program as
20provided in subdivision (d) of Section 5156 shall not be subject
21to the fees specified in paragraphs (1), (2), and (5) of subdivision
22(a) and shall only be issued in a sequential series.

23(c) Except as provided in paragraph (5) of subdivision (a), and
24after deducting its administrative costs under this section, the
25department shall deposit the additional revenue derived from the
P5    1issuance, renewal, transfer, and substitution of the specialized
2 license plates in the Specialized License Plate Fund, which is
3hereby established in the State Treasury. Upon appropriation by
4the Legislature, the moneys in that fund shall be allocated to each
5sponsoring agency, in proportion to the amount in the fund that is
6attributable to the agency’s specialized license plate program.
7Except as authorized under Section 5159, the sponsoring agency
8shall expend all funds received under this section exclusively for
9projects and programs that promote the state agency’s official
10policy, mission, or work.

11(d) (1) The Department of Veterans Affairs may actively request
12and receive donations for the Gold Star Family License Plate
13Account which is hereby created in the Specialized License Plate
14Fund and which may consist of donations from public and private
15entities. Earnings generated by the Gold Star Family License Plate
16Account shall be retained by the account.

17(2) Upon the determination of the department that there are
18sufficient funds in the Gold Star Family License Plate Account
19for this purpose, moneys in the Gold Star Family License Plate
20Account shall be available, upon appropriation by the Legislature,
21to the department for the necessary administrative costs of
22establishing the Gold Star Family specialized license plate program.

begin insert

23(e) Notwithstanding subdivision (c), the department shall deposit
24the additional revenue derived from the issuance, renewal, transfer,
25and substitution of a specialty license plate issued under the Pet
26Lover’s License Plate Program sponsored by the Veterinary
27Medical Board, or a successor specialty license plate program
28sponsored by the Veterinary Medical Board, in the Pet Lover’s
29Specialized License Plate Fund, which is hereby established in the
30State Treasury. Notwithstanding Section 13340 of the Government
31Code, all of the moneys in the Pet Lover’s Specialized License
32Plate Fund are continuously appropriated to the Veterinary
33Medical Board, without regard to fiscal years, for the sole and
34exclusive purpose of funding grants to providers of no-cost or
35low-cost animal sterilization services. The Veterinary Medical
36Board shall consider the recommendations of the California Spay
37and Neuter License Plate Fund, Inc., in determining how to award
38grant funds.

end insert
begin delete
39

SECTION 1.  

Section 75.21 of the Revenue and Taxation Code
40 is amended to read:

P6    1

75.21.  

(a) Exemptions shall be applied to the amount of the
2supplemental assessment, provided that the property is not
3receiving any other exemption on either the current roll or the roll
4being prepared except as provided for in subdivision (b), that the
5assessee is eligible for the exemption, and that, in those instances
6in which the provisions of this division require the filing of a claim
7for the exemption, the assessee makes a claim for the exemption.

8(b) If the property received an exemption on the current roll or
9the roll being prepared and the assessee on the supplemental roll
10is eligible for an exemption and, in those instances in which the
11provisions of this division require the filing of a claim for the
12exemption, the assessee makes a claim for an exemption of a
13greater amount, then the difference in the amount between the two
14exemptions shall be applied to the supplemental assessment.

15(c) In those instances in which the provisions of this division
16require the filing of a claim for the exemption, except as provided
17in subdivision (d), (e), or (f), any person claiming to be eligible
18for an exemption to be applied against the amount of the
19supplemental assessment shall file a claim or an amendment to a
20current claim, in that form as prescribed by the board, on or before
21the 30th day following the date of notice of the supplemental
22assessment, in order to receive a 100-percent exemption.

23(1) With respect to property as to which the college, cemetery,
24church, religious, exhibition, veterans’ organization, free public
25libraries, free museums, or welfare exemption was available, but
26for which a timely application for exemption was not filed, 90
27percent of any tax or penalty or interest resulting from the assessed
28value thereon, or that portion of any amount of tax or penalty or
29interest resulting from the assessed value thereon that exceeds
30twenty thousand dollars ($20,000) in total amount, whichever is
31greater, shall be canceled or refunded for each supplemental
32assessment, provided that an appropriate application for exemption
33is thereafter filed.

34(2) With respect to property as to which the welfare exemption
35or veterans’ organization exemption was available, all provisions
36of Section 254.5, other than the specified dates for the filing of
37affidavits and other acts, are applicable to this section.

38(3) With respect to property as to which the veterans’ or
39homeowners’ exemption was available, but for which a timely
40application for exemption was not filed, that portion of tax
P7    1attributable to 80 percent of the amount of exemption available
2shall be canceled or refunded, provided that an appropriate
3application for exemption is filed on or before the date on which
4the first installment of taxes on the supplemental tax bill becomes
5delinquent, as provided by Section 75.52.

6(4) With respect to property as to which the disabled veterans’
7exemption was available, but for which a timely application for
8exemption was not filed, that portion of tax attributable to 90
9percent of the amount of exemption available shall be canceled or
10refunded, provided that an appropriate application for exemption
11is thereafter filed.

12(5) With respect to property as to which any other exemption
13was available, but for which a timely application for exemption
14was not filed, 90 percent of any tax or penalty or interest resulting
15from the assessed value thereon, or that portion of any amount of
16tax or penalty or interest resulting from the assessed value thereon
17that exceeds twenty thousand dollars ($20,000) in total amount,
18whichever is greater, shall be canceled or refunded, for each
19supplemental assessment, provided that an appropriate application
20for exemption is thereafter filed.

21Other provisions of this division pertaining to the late filing of
22claims for exemption do not apply to assessments made pursuant
23to this chapter.

24(d) For purposes of this section, any claim for the homeowners’
25exemption, veterans’ exemption, or disabled veterans’ exemption
26previously filed by the owner of a dwelling, granted and in effect,
27constitutes the claim or claims for that exemption required in this
28section. In the event that a claim for the homeowners’ exemption,
29veterans’ exemption, or disabled veterans’ exemption is not in
30effect, a claim for any of those exemptions for a single
31supplemental assessment for a change in ownership or new
32construction occurring on or after June 1, up to and including
33December 31, shall apply to that assessment; a claim for any of
34those exemptions for the two supplemental assessments for a
35change in ownership or new construction occurring on or after
36January 1, up to and including May 31, one for the current fiscal
37year and one for the following fiscal year, shall apply to those
38assessments. In either case, if granted, the claim shall remain in
39effect until title to the property changes, the owner does not occupy
40the home as his or her principal place of residence on the lien date,
P8    1or the property is otherwise ineligible pursuant to Section 205,
2205.5, or 218.

3(e) Notwithstanding subdivision (c), an additional exemption
4claim may not be required to be filed until the next succeeding
5lien date in the case in which a supplemental assessment results
6from the completion of new construction on property that has
7previously been granted exemption on either the current roll or the
8roll being prepared.

9(f) (1) Notwithstanding subdivision (c), an additional exemption
10claim is not required to be filed in the instance where a
11supplemental assessment results from a change in ownership of
12property where the purchaser of the property owns and uses or
13uses, as the case may be, other property that has been granted the
14college, cemetery, church, religious, exhibition, veterans’
15organization, free public libraries, free museums, or welfare
16exemption on either the current roll or the roll being prepared and
17the property purchased is put to the same use.

18(2) In all other instances where a supplemental assessment
19results from a change in ownership of property, an application for
20exemption shall be filed pursuant to the provisions of subdivision
21(c).

22(g) The relief authorized under this section applies to each
23supplemental assessment for which an application for exemption
24 is filed. If a claim for the exemption is filed for a property location
25consisting of contiguous parcels, and the assessor grants the claim
26for that property location, any tax or penalty or interest resulting
27from the reduction of the amount of the exemption otherwise
28available may be applied to a single parcel.

29

SEC. 2.  

Section 206.1 of the Revenue and Taxation Code is
30amended to read:

31

206.1.  

(a) Pursuant to the authority of subdivision (d) of
32Section 4 of Article XIII of the California Constitution, and in
33accordance with subdivision (b) of this section, all real property
34that is necessarily and reasonably required for the parking of
35vehicles of persons who are attending religious services, or are
36engaged in religious services or worship or any religious activity,
37is exempt from taxation.

38(b) For purposes of the exemption established by subdivision
39(a), all of the following shall apply:

P9    1(1) “Real property” means land and improvements or a
2possessory interest in land and improvements.

3(2) The real property is not required to be contiguous to the land
4on which the church or other structure used for religious services
5or as the place of worship or religious activity is located.

6(3) The real property is not at other times used for commercial
7purposes. For purposes of this paragraph, “commercial purposes”
8does not include use of the property for the parking of vehicles or
9bicycles, the revenue from which does not exceed the ordinary
10and necessary costs of maintaining the real property.

11(4) The exemption shall apply to otherwise qualifying land and
12improvements regardless of whether the land and improvements
13are owned by the church, religious denomination, or sect using the
14land and improvements for the parking of vehicles by persons
15described in subdivision (a). However, the exemption shall apply
16to land and improvements that are not owned by the church,
17religious denomination, or sect using the land and improvements
18for the parking of vehicles by persons described in subdivision (a)
19only as long as all of the following conditions are met:

20(A) The church, religious denomination, or sect is engaged in
21a lease of the land and improvements for the exclusive purpose of
22the parking of vehicles by persons described in subdivision (a).

23(B) The church, religious denomination, or sect is responsible,
24under the terms of its lease with the fee owner of the land and
25improvements, for paying the property taxes levied on the land
26and improvements. For purposes of this subparagraph, paying
27property taxes levied on land and improvements includes
28reimbursement paid to the fee owner of the land and improvements
29for those taxes.

30(C) The real property is used exclusively for the parking of
31vehicles by persons described in subdivision (a).

32(D) The fee owner of the real property and the county agree that
33the fee owner shall pay the total amount of taxes that would be
34levied on the real property for the current fiscal year and the first
35two subsequent fiscal years in the absence of a grant of exemption
36pursuant to this paragraph for the current fiscal year, if the real
37property is used for any purpose other than that specified in
38subparagraph (C) during either of those two subsequent fiscal
39years.

P10   1

SEC. 3.  

Section 254 of the Revenue and Taxation Code is
2amended to read:

3

254.  

(a) (1)  Any person claiming the church, cemetery,
4college, exhibition, welfare, veterans’ organization, free public
5libraries, free museums, aircraft of historical significance, tribal
6housing, or public schools property tax exemption and anyone
7claiming the classification of a vessel as a documented vessel
8eligible for assessment under Section 227, shall submit to the
9assessor annually an affidavit, giving any information required by
10the board.

11(2) The affidavit required pursuant to subdivision (a) shall be
12 submitted for each property location for which the property tax
13exemption is sought.

14(b) Any person claiming any exemption specified in subdivision
15(a) may submit a single claim for a property location consisting
16of contiguous parcels.

17

SEC. 4.  

Section 254.5 of the Revenue and Taxation Code is
18amended to read:

19

254.5.  

(a) Claims for the welfare exemption and the veterans’
20organization exemption shall be filed on or before February 15 of
21each year with the assessor.

22The assessor may not approve a property tax exemption claim
23until the claimant has been issued a valid organizational clearance
24certificate pursuant to Section 254.6. Financial statements shall
25be submitted only if requested in writing by the assessor.

26(b) (1) The assessor shall review all claims for the welfare
27exemption to ascertain whether the property on which the
28exemption is claimed meets the requirements of Section 214. The
29assessor shall also review all claims for the veterans’ organization
30exemption to ascertain whether the property on which the
31exemption is claimed meets the requirements of Section 215.1. In
32this connection, the assessor shall consider, among other matters,
33whether:

34(A) Any capital investment of the owner or operator for
35expansion of a physical plant is justified by the contemplated return
36thereon, and required to serve the interests of the community.

37(B) The property on which the exemption is claimed is used for
38the actual operation of an exempt activity and does not exceed an
39amount of property reasonably necessary to the accomplishment
40of the exempt purpose.

P11   1(2) The assessor may institute an audit or verification of the
2operations of the owner or operator of the applicant’s property to
3ascertain whether both the owner and operator meet the
4requirements of Section 214.

5(c) (1) The assessor may deny a claim for the welfare exemption
6on a property, notwithstanding that the claimant has been granted
7an organizational clearance certificate by the board.

8(2) If the assessor finds that the claimant’s property is ineligible
9for the welfare exemption or the veterans’ organization exemption,
10the assessor shall notify the claimant in writing of all of the
11following:

12(A) That the property is ineligible for the exemption.

13(B) That the claimant may seek a refund of property taxes paid
14 by filing a refund claim with the county.

15(C) That if the claimant’s refund claim with the county is denied,
16the claimant may file a refund action in superior court.

17(d) Notwithstanding subdivision (a), an applicant, granted a
18welfare exemption and owning any property exempted pursuant
19to Section 214.15 or Section 231, shall not be required to reapply
20for the welfare exemption in any subsequent year in which there
21has been no transfer of, or other change in title to, the exempted
22property and the property is used exclusively by a governmental
23entity or by a nonprofit corporation described in Section 214.15
24for its interest and benefit. The applicant shall notify the assessor
25on or before February 15 if, on or before the preceding lien date,
26the applicant became ineligible for the welfare exemption or if,
27on or before that lien date, the property was no longer owned by
28the applicant or otherwise failed to meet all requirements for the
29welfare exemption.

30Prior to the lien date, the assessor shall annually mail a notice
31to every applicant relieved of the requirement of filing an annual
32application by this subdivision.

33The notice shall be in a form and contain that information that
34the board may prescribe, and shall set forth the circumstances
35under which the property may no longer be eligible for exemption,
36and advise the applicant of the duty to inform the assessor if the
37property is no longer eligible for exemption.

38The notice shall include a card, as prescribed by the board, that
39is to be returned to the assessor by any applicant desiring to
P12   1maintain eligibility for the welfare exemption under Section 214.15
2or Section 231.

3Failure to return this card does not of itself constitute a waiver
4of exemption as called for by the California Constitution, but may
5result in onsite inspection to verify exempt activity.

6(e) Upon any indication that a welfare exemption or veterans’
7organization exemption on the property has been incorrectly
8granted, the assessor shall redetermine eligibility for the exemption.
9If the assessor determines that the property, or any portion thereof,
10is no longer eligible for the exemption, he or she shall immediately
11cancel the exemption on so much of the property as is no longer
12eligible for the exemption.

13(f) If a welfare exemption or veterans’ organization exemption
14on the property has been incorrectly allowed, an escape assessment
15as provided by Article 4 (commencing with Section 531) of Chapter
163 in the amount of the exemption, with interest as provided in
17Section 506, shall be made, and a penalty shall be assessed for any
18failure to notify the assessor as required by this section in an
19amount equaling 10 percent of the escape assessment, but may not
20exceed two hundred dollars ($200).

21(g) Pursuant to Section 15640 of the Government Code, the
22board shall review the assessor’s administration of the welfare
23exemption and the veterans’ organization exemption as part of the
24board’s survey of the county assessment roll to ensure the proper
25administration of the exemption.

26

SEC. 5.  

Section 255 of the Revenue and Taxation Code is
27amended to read:

28

255.  

(a) Affidavits required for exemptions named in this
29article, except the homeowners’ exemption and the disabled
30veterans’ exemption, shall be filed with the assessor between the
31lien date and 5 p.m. on February 15.

32(b) Affidavits for the homeowners’ exemption except as
33otherwise provided in Sections 255.1, 255.2, and 275, shall be
34filed with the assessor any time after the claimant becomes eligible
35but no later than 5 p.m. on February 15.

36(c) Except as otherwise provided in Sections 276, 276.1, and
37276.2, affidavits for the disabled veterans’ exemption shall be filed
38with the assessor any time after the claimant becomes eligible for
39the exemption but no later than 5 p.m. on February 15.

P13   1(d) Notwithstanding the provisions of subdivision (a), any
2claimant who has been found ineligible for the church exemption
3or the religious exemption may file an affidavit for a welfare
4exemption. Affidavits for the welfare exemption filed pursuant to
5this subdivision shall be filed within 15 days from the date of
6notification by the assessor of the claimants’ ineligibility for the
7church exemption or the religious exemption.

8

SEC. 6.  

Section 257 of the Revenue and Taxation Code is
9amended to read:

10

257.  

(a) Any person claiming the religious exemption shall
11submit to the assessor an affidavit giving specific information
12relating to property tax exemption.

13(b) The affidavit shall show that:

14(1) The building, equipment, and land are used exclusively for
15religious purposes.

16(2) The land claimed as exempt is required for the convenient
17use of the building.

18(3) The property is owned by an entity organized and operating
19exclusively for religious purposes.

20(4) The entity is nonprofit.

21(5) No part of the net earnings inures to the benefit of any private
22individual.

23(c) Any exemption granted pursuant to a claim filed in
24accordance with this section, once granted, shall remain in effect
25until that time that title to the property changes or the property is
26no longer used for exempt purposes. Any person who is granted
27an exemption pursuant to a claim filed in accordance with this
28 section shall notify the assessor by February 15 if the property
29becomes ineligible for the exemption.

30(d) Upon any indication that a religious exemption has been
31incorrectly allowed, the assessor shall make a redetermination of
32eligibility for the religious exemption. If the assessor determines
33that the property or any portion thereof is no longer eligible for
34the exemption, he or she shall immediately cancel the exemption
35on so much of the property as is no longer eligible for exemption.

36If a religious exemption has been incorrectly allowed, an escape
37assessment as allowed by Article 4 (commencing with Section
38531) of Chapter 3 in the amount of the exemption with interest as
39provided in Section 506 shall be made, together with a penalty for
40failure to notify the assessor, where applicable, in the amount of
P14   110 percent of the assessment, but may not exceed two hundred
2dollars ($200) in tax liability.

3

SEC. 7.  

Section 257.1 of the Revenue and Taxation Code is
4amended to read:

5

257.1.  

For the 1983-84 fiscal year and fiscal years thereafter,
6the assessor shall annually, prior to the lien date, mail a notice to
7every person who received the religious exemption for the previous
8fiscal year.

9The notice shall be in a form and contain that information which
10the board may prescribe, and shall set forth the circumstances
11under which the property may no longer be eligible for exemption
12and advise the person of the duty to inform the assessor if the
13property is no longer eligible for exemption.

14The notice shall include a card, as prescribed by the board, that
15is to be returned to the assessor by any person who desires to
16maintain eligibility for the religious exemption.

17

SEC. 8.  

Section 270 of the Revenue and Taxation Code is
18amended to read:

19

270.  

(a) With respect to property as to which the college,
20cemetery, church, religious, exhibition, veterans’ organization,
21free public libraries, free museums, public schools, community
22colleges, state colleges, state universities, tribal housing, or welfare
23exemption was available but for which a timely application for
24exemption was not filed, 90 percent of any tax or penalty or interest
25 resulting from the assessed value thereon shall be canceled or
26refunded provided an appropriate application for exemption is
27thereafter filed.

28(b) Notwithstanding subdivision (a), that portion of any tax or
29penalty resulting from the assessed value thereon that exceeds
30twenty thousand dollars ($20,000) in total amount shall be canceled
31or refunded provided it is imposed upon property entitled to relief
32under subdivision (a) for which an appropriate claim for exemption
33has been filed.

34(c) The relief authorized under this section applies to each claim
35for exemption filed. In the case where a claim for exemption is
36filed for a property location consisting of contiguous parcels, and
37the assessor grants the claim for that property location, any tax or
38penalty or interest thereon resulting from the reduction of the
39amount of the exemption otherwise available may be applied to a
40single parcel.

P15   1(d) With respect to property as to which the welfare exemption
2or veterans’ organization exemption was available, Section 254.5,
3other than the specified dates for the filing of affidavits and other
4acts, is applicable to this section.

5

SEC. 9.  

Section 271 of the Revenue and Taxation Code is
6amended to read:

7

271.  

(a) Provided that an appropriate application for exemption
8is filed within 90 days from the first day of the month following
9the month in which the property was acquired or by February 15
10of the following calendar year, whichever occurs earlier, any tax
11or penalty or interest resulting from the assessed value imposed
12upon:

13(1) Property owned by any organization qualified for the college,
14cemetery, church, religious, exhibition, veterans’ organization,
15tribal housing, or welfare exemption that is acquired by that
16organization during a given calendar year, after the lien date but
17prior to the first day of the fiscal year commencing within that
18calendar year, when the property is of a kind that would have been
19qualified for the college, cemetery, church, religious, exhibition,
20veterans’ organization, tribal housing, or welfare exemption if it
21had been owned by the organization on the lien date, shall be
22canceled or refunded.

23(2) Property owned by any organization that would have
24qualified for the college, cemetery, church, religious, exhibition,
25veterans’ organization, tribal housing, or welfare exemption had
26the organization been in existence on the lien date, that was
27acquired by it during that calendar year after the lien date in that
28year but prior to the commencement of that fiscal year, and of a
29kind that presently qualifies for the exemption and that would have
30so qualified for that fiscal year had it been owned by the
31organization on the lien date and had the organization been in
32existence on the lien date, shall be canceled or refunded.

33(3) Property acquired after the beginning of any fiscal year by
34an organization qualified for the college, cemetery, church,
35religious, exhibition, veterans’ organization, tribal housing, or
36welfare exemption and the property is of a kind that would have
37qualified for an exemption if it had been owned by the organization
38on the lien date, whether or not that organization was in existence
39on the lien date, shall be canceled or refunded in the proportion
P16   1that the number of days for which the property was so qualified
2during the fiscal year bears to 365.

3(b) Ninety percent of any tax or penalty or interest resulting
4from the assessed value thereon imposed upon property that would
5be entitled to relief under subdivision (a) or Section 214.01, except
6that an appropriate application for exemption was not filed within
7the time required by the applicable provision, shall be canceled or
8refunded provided that an appropriate application for exemption
9is filed after the last day on which relief could be granted under
10subdivision (a) or Section 214.01.

11(c) Notwithstanding subdivision (b), that portion of any tax or
12penalty or interest resulting from the assessed value thereon that
13exceeds twenty thousand dollars ($20,000) in total amount shall
14be canceled or refunded provided it is imposed upon property that
15would be entitled to relief under subdivision (a) except that an
16appropriate application for exemption was not filed within the time
17period required by the applicable provision, so long as an
18appropriate claim for exemption has been filed.

19(d) The relief authorized under this section applies to each claim
20for exemption filed. In the case where a claim for exemption is
21filed for a property location consisting of contiguous parcels, and
22the assessor grants the claim for that property location, any tax or
23penalty or interest thereon resulting from the reduction of the
24amount of the exemption otherwise available may be applied to a
25single parcel.

26(e) With respect to property acquired after the beginning of the
27fiscal year for which relief is sought, subdivisions (b) and (c) shall
28apply only to that pro rata portion of any tax or penalty or interest
29resulting from the assessed value thereon that would have been
30canceled or refunded had the property qualified for relief under
31paragraph (3) of subdivision (a).

32

SEC. 10.  

Section 276 of the Revenue and Taxation Code is
33amended to read:

34

276.  

(a) Except as otherwise provided by subdivision (b), for
35property for which the disabled veterans’ exemption described in
36Section 205.5 was available, but for which a timely claim was not
37filed, 90 percent of any tax, including any interest or penalty
38thereon, levied upon that portion of the assessed value of the
39property that would have been exempt under a timely and
P17   1appropriate claim shall be canceled or refunded, provided that an
2appropriate claim for exemption is thereafter filed.

3Cancellations made under this subdivision are subject to the
4provisions of Article 1 (commencing with Section 4985) of Chapter
54. Refunds issued under this subdivision are subject to the
6limitations periods on refunds as described in Article 1
7(commencing with Section 5096) of Chapter 5.

8(b) If a late-filed claim for the one-hundred-fifty-thousand-dollar
9($150,000) exemption is filed in conjunction with a timely filed
10claim for the one-hundred-thousand-dollar ($100,000) exemption,
11the amount of any exemption allowed under the late-filed claim
12under subdivision (a) shall be determined on the basis of that
13portion of the exemption amount, otherwise available under
14subdivision (a), that exceeds one hundred thousand dollars
15($100,000).

16(c) For those claims filed pursuant to subdivision (a) after
17November 15, the exemption under that subdivision may be applied
18to the second installment. If that exemption is so applied, the first
19installment is still delinquent on December 10, and is subject to
20delinquent penalties provided for in this division if that installment
21is not timely paid. A refund shall be made to the taxpayer upon a
22claim submitted to the auditor if the exemption is applied to the
23second installment and either of the following is true:

24(1) Both installments are paid on or before December 10.

25(2) The reduction in taxes resulting from the exemption exceeds
26the amount of taxes due on the second installment.

27

SEC. 11.  

If the Commission on State Mandates determines
28that this act contains costs mandated by the state, reimbursement
29to local agencies and school districts for those costs shall be made
30pursuant to Part 7 (commencing with Section 17500) of Division
314 of Title 2 of the Government Code.

32

SEC. 12.  

Notwithstanding Section 2229 of the Revenue and
33Taxation Code, no appropriation is made by this act and the state
34shall not reimburse any local agency for any property tax revenues
35lost by it pursuant to this act.

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