AB 737, as introduced, Roger Hernández. Property taxation: exempt property.
Existing property tax law exempts from property taxation, property used for free public libraries and free museums.
This bill would make nonsubstantive changes to that provision.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 202 of the Revenue and Taxation Code
2 is amended to read:
(a) The exemption of the following property is as
4specified in subdivisions (a), (b), (d), and (h) of Section 3 of Article
5XIII of the Constitution, except as otherwise provided in
6subdivision (a) of Section 11 thereof:
7(1) Growing crops.
8(2) Property used forbegin delete freeend delete public libraries andbegin delete freeend delete museums
9begin insert that are freeend insert.
P2 1(3) Property
used exclusively for public schools, community
2colleges, state colleges, and state universities, including the
3University of California.
4(4) Property belonging to this state, a county, or a city. Property
5belonging to the State Compensation Insurance Fund is not
6property belonging to this state.
7(b) The exemption described in paragraph (3) of subdivision
8(a) shall apply to off-campus facilities owned or leased by an
9apprenticeship program sponsor, if such facilities are used
10exclusively by the public schools for classes of related and
11supplemental instruction for apprentices or trainees which are
12conducted by the public schools under Chapter 4 (commencing
13with Section 3070) of Division 3 of the Labor Code.
14(c) Without prejudice to the right to assert an exemption
15otherwise available under subdivision (a), (d), or (e)
of Section 3
16of Article XIII of the Constitution, a property tax under this
17division shall be imposed upon that portion of the bookstore
18property determined to be generating the unrelated business taxable
19income, as defined in Section 512 of the Internal Revenue Code,
20to the extent property is:
21(1) Owned by an educational institution of collegiate grade or
22used by a nonprofit corporation operating a student bookstore
23affiliated with such an educational institution, and
24(2) Is primarily devoted to bookstore use that produces income
25that is taxable as unrelated business taxable income.
26This tax shall be determined by establishing a ratio of the
27unrelated business taxable income to the bookstore’s gross income
28as defined by the Internal Revenue Code. That percent shall be the
29maximum percentage of such bookstore property on which a
30property
tax can be levied.
31At the end of a fiscal year when unrelated business income has
32been generated, the nonprofit organization shall file with the
33assessor copies of the organization’s most recent tax return filed
34with the Internal Revenue Service.
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