AB 748, as introduced, Lackey. Taxation: exemptions: public schools.
Existing property tax law provides, with respect to property as to which the college, cemetery, church, religious, exhibition, veterans’ organization, free public libraries, free museums, public schools, community colleges, state colleges, state universities, tribal housing, or welfare exemption was available but for which a timely application for exemption was not filed, that 90% of any tax or penalty or interest on that property shall be canceled or refunded if an appropriate application for exemption is filed on or before the lien date in the calendar year next succeeding the calendar year in which the exemption was not claimed by a timely application.
Existing property tax law requires, if an appropriate application for exemption is filed within 90 days from the first day of the month following the month in which the property was acquired or by February 15 of the following calendar year, whichever occurs first, any tax or penalty or interest imposed upon property owned by any organization qualified for the college, cemetery, church, religious, exhibition, veterans’ organization, tribal housing, or welfare exemption that is acquired by that organization during a given calendar year, after the lien date but before the first day of the fiscal year commencing within that calendar year, if the property is of a kind that would have been qualified for the college, cemetery, church, religious, exhibition, veterans’ organization, tribal housing, or welfare exemption if it had been owned by the organization on the lien date, to be canceled or refunded.
This bill would add public schools to the list of entities eligible for the cancellation or refund of any tax or penalty or interest imposed on property acquired in a given calendar year after the lien date but before the first day of the fiscal year commencing within that calendar year. The bill also would make conforming changes.
By increasing the duties of local officials relative to the administration of taxes, this bill would impose a state-mandated local program.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 271 of the Revenue and Taxation Code
2 is amended to read:
(a) Provided that an appropriate application for exemption
4is filed within 90 days from the first day of the month following
5the month in which the property was acquired or by February 15
6of the following calendar year, whichever occursbegin delete earlier,end deletebegin insert first,end insert any
7tax or penalty or interest imposed upon:
8(1) Property owned by any organization qualified for the college,
9cemetery, church, religious, exhibition, veterans’ organization,
10tribal housing,begin insert public school,end insert
or welfare exemption that is acquired
11by that organization during a given calendar year, after the lien
12date butbegin delete prior toend deletebegin insert beforeend insert the first day of the fiscal year commencing
13within that calendar year, when the property is of a kind that would
14have been qualified for the college, cemetery, church, religious,
15exhibition, veterans’ organization, tribal housing,begin insert public school,end insert
16 or welfare exemption if it had been owned by the organization on
17the lien date, shall be canceled or refunded.
P3 1(2) Property owned by any organization that would have
2qualified for the college, cemetery, church, religious, exhibition,
3veterans’ organization, tribal
housing,begin insert
public school,end insert or welfare
4exemption had the organization been in existence on the lien date,
5that was acquired by it during that calendar year after the lien date
6in that year butbegin delete prior toend deletebegin insert beforeend insert the commencement of that fiscal
7year, and of a kind that presently qualifies for the exemption and
8that would have so qualified for that fiscal year had it been owned
9by the organization on the lien date and had the organization been
10in existence on the lien date, shall be canceled or refunded.
11(3) Property acquired after the beginning of any fiscal year by
12an organization qualified for the college, cemetery, church,
13religious, exhibition, veterans’ organization, tribal housing,begin insert
public
14school,end insert or welfare exemption and the property is of a kind that
15would have qualified for an exemption if it had been owned by
16the organization on the lien date, whether or not that organization
17was in existence on the lien date, shall be canceled or refunded in
18the proportion that the number of days for which the property was
19so qualified during the fiscal year bears to 365.
20(b) Eighty-five percent of any tax or penalty or interest thereon
21imposed upon property that would be entitled to relief under
22subdivision (a) or Section 214.01, except that an appropriate
23application for exemption was not filed within the time required
24by the applicable provision, shall be canceled or refunded provided
25that an appropriate application for exemption is filed after the last
26day on which relief could be granted under subdivision (a) or
27Section 214.01.
28(c) Notwithstanding subdivision (b), any tax or penalty or
29interest thereon exceeding two hundred fifty dollars ($250) in total
30amount shall be canceled or refunded provided it is imposed upon
31property entitled to relief under subdivision (b) for which an
32appropriate claim for exemption has been filed.
33(d) With respect to property acquired after the beginning of the
34fiscal year for which relief is sought, subdivisions (b) and (c) shall
35apply only to that pro rata portion of any tax or penalty or interest
36thereon that would have been canceled or refunded had the property
37qualified for relief under paragraph (3) of subdivision (a).
Section 271.5 of the Revenue and Taxation Code is
39amended to read:
(a) In the event that property receiving the college,
2cemetery, church, religious, exhibition, veterans’ organization,
3tribal housing,begin insert public school,end insert or welfare exemption is sold or
4otherwise transferred, the exemption shall cease to apply on the
5date of that sale or transfer. A new exemption shall be available
6subject to the provisions of Section 271.
7(b) Termination of the exemption under this section shall result
8in an escape assessment of the property pursuant to Section 531.1.
If the Commission on State Mandates determines that
10this act contains costs mandated by the state, reimbursement to
11local agencies and school districts for those costs shall be made
12pursuant to Part 7 (commencing with Section 17500) of Division
134 of Title 2 of the Government Code.
O
99