BILL NUMBER: AB 748	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Lackey

                        FEBRUARY 25, 2015

   An act to amend Sections 271 and 271.5 of the Revenue and Taxation
Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 271 of the Revenue and Taxation Code is amended
to read:
   271.  (a) Provided that 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  earlier, 
 first,  any tax or penalty or interest imposed upon:
   (1) Property owned by any organization qualified for the college,
cemetery, church, religious, exhibition, veterans' organization,
tribal housing,  public school,  or welfare exemption that
is acquired by that organization during a given calendar year, after
the lien date but  prior to   before  the
first day of the fiscal year commencing within that calendar year,
when the property is of a kind that would have been qualified for the
college, cemetery, church, religious, exhibition, veterans'
organization, tribal housing,  public school,  or welfare
exemption if it had been owned by the organization on the lien date,
shall be canceled or refunded.
   (2) Property owned by any organization that would have qualified
for the college, cemetery, church, religious, exhibition, veterans'
organization, tribal housing,  public school,  or welfare
exemption had the organization been in existence on the lien date,
that was acquired by it during that calendar year after the lien date
in that year but  prior to   before  the
commencement of that fiscal year, and of a kind that presently
qualifies for the exemption and that would have so qualified for that
fiscal year had it been owned by the organization on the lien date
and had the organization been in existence on the lien date, shall be
canceled or refunded.
   (3) Property acquired after the beginning of any fiscal year by an
organization qualified for the college, cemetery, church, religious,
exhibition, veterans' organization, tribal housing,  public
school,  or welfare exemption and the property is of a kind that
would have qualified for an exemption if it had been owned by the
organization on the lien date, whether or not that organization was
in existence on the lien date, shall be canceled or refunded in the
proportion that the number of days for which the property was so
qualified during the fiscal year bears to 365.
   (b) Eighty-five percent of any tax or penalty or interest thereon
imposed upon property that would be entitled to relief under
subdivision (a) or Section 214.01, except that an appropriate
application for exemption was not filed within the time required by
the applicable provision, shall be canceled or refunded provided that
an appropriate application for exemption is filed after the last day
on which relief could be granted under subdivision (a) or Section
214.01.
   (c) Notwithstanding subdivision (b), any tax or penalty or
interest thereon exceeding two hundred fifty dollars ($250) in total
amount shall be canceled or refunded provided it is imposed upon
property entitled to relief under subdivision (b) for which an
appropriate claim for exemption has been filed.
   (d) With respect to property acquired after the beginning of the
fiscal year for which relief is sought, subdivisions (b) and (c)
shall apply only to that pro rata portion of any tax or penalty or
interest thereon that would have been canceled or refunded had the
property qualified for relief under paragraph (3) of subdivision (a).

  SEC. 2.  Section 271.5 of the Revenue and Taxation Code is amended
to read:
   271.5.  (a) In the event that property receiving the college,
cemetery, church, religious, exhibition, veterans' organization,
tribal housing,  public school,  or welfare exemption is
sold or otherwise transferred, the exemption shall cease to apply on
the date of that sale or transfer. A new exemption shall be available
subject to the provisions of Section 271.
   (b) Termination of the exemption under this section shall result
in an escape assessment of the property pursuant to Section 531.1.
  SEC. 3.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.