Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 748

Introduced by Assembly Member Lackey

February 25, 2015

An act to amend Sections begin insert 75.21, end insert 271 begin insert , end insert and 271.5 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 748, as amended, Lackey. Taxation: exemptions: public schools.

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Existing law, with respect to supplemental property tax assessments, specifies various limitation periods for assessments on the supplemental tax roll. Existing law provides for the application of property tax exemptions to those supplemental assessments provided, among other things, that an assessee file an exemption application within a specified time. Existing property tax law allows taxes, penalties, and interest imposed for late filings of property tax exemption applications for the supplemental roll that exceed $250 in total to be canceled or refunded up to 85% or 90%, as applicable, in the case of the exemption for a college, cemetery, church, religious, exhibition, or veterans’ organization.

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This bill would expand this reduction to be applied to exemptions for public schools, as provided.

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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:

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begin insert SECTION 1. end insert   

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begin insert Section 75.21 of the end insert begin insert Revenue and Taxation Code end insert
begin insert is amended to read: end insert

75.21.  

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

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

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

(1) With respect to property as to which the college, cemetery,
church, religious, exhibition, veterans’ organization, begin insert public school, end insert
free public libraries, free museums, or welfare exemption was
available, but for which a timely application for exemption was
not filed, the following amounts shall be canceled or refunded:

(A) Ninety percent of any tax or penalty or interest thereon, or
any amount of tax or penalty or interest thereon exceeding two
hundred fifty dollars ($250) in total amount, whichever is greater,
for each supplemental assessment, provided that an appropriate
application for exemption is filed on or before the date on which
the first installment of taxes on the supplemental tax bill becomes
delinquent, as provided by Section 75.52.

(B) Eighty-five percent of any tax or penalty or interest thereon,
or any amount of tax or penalty or interest thereon exceeding two
hundred fifty dollars ($250) in total amount, whichever is greater,
for each supplemental assessment, if an appropriate application
for exemption is thereafter filed.

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

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

(4) With respect to property as to which the disabled veterans’
exemption was available, but for which a timely application for
exemption was not filed, that portion of tax attributable to 90
percent of the amount of exemption available shall be canceled or
refunded, provided that an appropriate application for exemption
is filed on or before the date on which the first installment of taxes
on the supplemental tax bill becomes delinquent, as provided by
Section 75.52. If an appropriate application for exemption is
thereafter filed, 85 percent of the amount of the exemption available
shall be canceled or refunded.

(5) With respect to property as to which any other exemption
was available, but for which a timely application for exemption
was not filed, the following amounts shall be canceled or refunded:

(A) Ninety percent of any tax or penalty or interest thereon,
provided that an appropriate application for exemption is filed on
or before the date on which the first installment of taxes on the
supplemental tax bill becomes delinquent, as provided by Section
75.52.

(B) Eighty-five percent of any tax or penalty or interest thereon,
or any amount of tax or penalty or interest thereon exceeding two
hundred fifty dollars ($250) in total amount, whichever is greater,
for each supplemental assessment, if an appropriate application
for exemption is thereafter filed.

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

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

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

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

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

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

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 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 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 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).

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

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.

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

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.