BILL NUMBER: AB 1945	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 5, 2010

INTRODUCED BY   Assembly Member Fletcher

                        FEBRUARY 17, 2010

   An act to amend Section 107.4 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1945, as amended, Fletcher. Taxation: military housing.
   Existing property tax law requires that all property subject to
tax be assessed at its full value, and includes certain possessory
interests among those property interests that are subject to tax.
Existing property tax law defines a taxable possessory interest to be
a use that is independent, durable, and exclusive. Existing property
tax law specifies that, for purposes of the definition of a taxable
possessory interest, a possession or use is not independent if it is
pursuant to a contract that includes, but is not limited to, a
long-term lease for the private construction, renovation,
rehabilitation, replacement, management, or maintenance of housing
for active duty military personnel and their dependents, if the
housing units and the private contractor constructing the housing
meet specified criteria.  Existing law specifies that one of
these criteria is a requirement that any   reduction or, if
that amount is unknown, the private contractor's reasonable estimate
of savings, in property taxes on leased property used for military
housing, as defined, inures solely to the benefit of the residents of
the military housing through improvements. 
   Existing property tax law provides for escape assessments to be
made within 4 years after July 1 of the assessment year in which the
property escaped taxation or was underassessed. 
   This bill would  make a technical, nonsubstantive change
to that provision   authorize the county assessor, if
the military requires the property tax savings described above to be
held in a   reserve account for use in future project
construction, to levy an escape assessment within 4 years after July
1 of the assessment year in which the property tax savings are
withdrawn from the reserve account  .
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 107.4 of the Revenue and Taxation Code is
amended to read:
   107.4.  For purposes of paragraph (1) of subdivision (a) of
Section 107, there is no independent possession or use of land or
improvements if that possession or use is pursuant to a contract that
includes, but is not limited to, a long-term lease, for the private
construction, renovation, rehabilitation, replacement, management, or
maintenance of housing for active duty military personnel and their
dependents, if all of the following criteria are met:
   (a) The military family housing constructed and managed by private
contractor is situated on a military facility under military
control, and the construction of that housing is performed under
military guidelines in the same manner as construction that is
performed by the military.
   (b) All services normally provided by a municipality are required
to be purchased from the military facility or from a provider
designated by the military.
   (c) The private contractor is not given the right and ability to
exercise any significant authority and control over the management or
operation of the military family housing, separate and apart from
the rules and regulations of the military.
   (d) The number of units, the number of bedrooms per unit, and the
unit mix are set by the military, and may not be changed by the
contractor without prior approval by the military.
   (e) Tenants are designated by a military housing agency.
   (f) Financing for the project is subject to the approval of the
military in its sole discretion.
   (g) Rents charged to military personnel or their dependents are
set by the military.
   (h) The military controls the distribution of revenues from the
project to the private contractor, and the private contractor is
allowed only a predetermined profit or fee for constructing the
military family housing.
   (i) Evictions from the housing units are subject to the military
justice system.
   (j) The military prescribes rules and regulations governing the
use and occupancy of the property.
   (k) The military has the authority to remove or bar persons from
the property.
   (  l  ) The military may impose access restrictions on
the contractor and its tenants.
   (m)  (1)    Any reduction or, if that amount is
unknown, the private contractor's reasonable estimate of savings, in
property taxes on leased property used for military housing under the
Military Housing Privatization Initiative (10 U.S.C. Sec. 2871 et
seq.) shall inure solely to the benefit of the residents of the
military housing through improvements, such as a child care center
provided by the private contractor. 
   (2) Notwithstanding Section 532, if the military, in writing or by
contract, requires the property tax savings to be held in a reserve
account for use in future project construction, the county assessor
may levy an escape assessment within four years after July 1 of the
assessment year in which the property tax savings are withdrawn from
the reserve account. 
   (n) The military family housing is constructed, renovated,
rehabilitated, remodeled, replaced, or managed under the Military
Housing Privatization Initiative, or any successor to that law.
   (o) For purposes of this section, "military facility under
military control" means a military base that restricts public access
to the military base.