BILL NUMBER: SB 996	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Lowenthal

                        FEBRUARY 9, 2010

   An act to amend Section 214.16 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 996, as introduced, Lowenthal. Property tax: welfare
exemptions: rental housing and related facilities: cancellation of
tax.
   Existing property tax law establishes a partial welfare exemption
for property used exclusively for rental housing and related
facilities that was previously purchased and owned by the Department
of Transportation, as specified, and that is now solely owned by an
organization that qualifies as an exempt organization. Existing law
requires any outstanding tax, interest, or penalty that was levied or
imposed upon property that qualifies for this partial welfare
exemption and that satisfies specified criteria between January 1,
2002, and January 1, 2009, to be canceled if the owner of the
property certifies that certain conditions were met at the time the
tax was levied.
   This bill would require any tax, interest, or penalty, that was
levied or imposed upon property as described above and that was paid,
to be refunded.
   By imposing new duties upon county tax officials with respect to
the refund of these property tax payments, 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 214.16 of the Revenue and Taxation Code is
amended to read:
   214.16.  (a) Any  outstanding  tax, interest, or
penalty that was levied or imposed upon property that qualifies for
an exemption pursuant to Section 214 and satisfies the criteria
specified in subparagraph (D) of paragraph (1) of subdivision (g) of
Section 214 between January 1, 2002, and January 1, 2009, shall be
canceled  or refunded  , provided that the owner of the
property certifies that all of the following conditions were met at
the time the tax was levied:
   (1) The owner was not organized and did not operate for profit.
   (2) There was a recorded deed restriction or other legal document
that restricted the project's usage and that provided that the units
designated for use by lower income households were continuously
available to or occupied by lower income households at rents not
exceeding those prescribed by Section 50053 of the Health and Safety
Code.
   (3) The funds that would have been necessary to pay property taxes
were used to maintain the affordability of, or reduce rents
otherwise necessary for, the units occupied by lower income
households.
   (b) For purposes of this section, "lower income households" has
the same meaning as defined by Section 50079.5 of the Health and
Safety Code.
  SEC. 2.  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.