BILL NUMBER: AB 2207 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 5, 2012
AMENDED IN ASSEMBLY MAY 7, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Gordon
FEBRUARY 23, 2012
An act to amend Section 214.02 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2207, as amended, Gordon. Property taxation: welfare exemption:
nature resources and open-space lands.
Existing property tax law, in accordance with the California
Constitution, provides for a welfare exemption under which property
used exclusively for religious, hospital, scientific, or charitable
purposes and owned and operated by funds, foundations, or
corporations meeting certain statutory requirements is exempt from
taxation. Existing law also provides that property used exclusively
for the preservation of specified nature resources or open-space
lands meeting other specified criteria is deemed to be included
within the welfare exemption.
This bill would, commencing with the 2013-14 fiscal year, provide
that, for the purposes of determining whether the property is used
for the actual operation of the exempt activity described above,
consideration shall not be given to the use of the property for
activities resulting in direct or in-kind revenues, as specified,
provided that the activities further the conservation objectives of
the property, or for any lease of the property for a purpose that
furthers the conservation objectives of the property, as provided.
This bill would also make a technical, nonsubstantive change to this
provision.
By imposing new duties upon local tax officials with respect to
the welfare exemption, 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.
Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to the bill.
This bill would take effect immediately as a tax levy.
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 214.02 of the Revenue and Taxation Code is
amended to read:
214.02. (a) Except as provided in subdivision (b) or (c),
property that is used exclusively for the preservation of native
plants or animals, biotic communities, geological or geographical
formations of scientific or educational interest, or open-space lands
used solely for recreation and for the enjoyment of scenic beauty,
is open to the general public subject to reasonable restrictions
concerning the needs of the land, and is owned and operated by a
scientific or charitable fund, foundation, limited liability company,
or corporation, the primary interest of which is to preserve those
natural areas, and that meets all the requirements of Section 214,
shall be deemed to be within the exemption provided for in
subdivision (b) of Sections 4 and 5 of Article XIII of the
Constitution of the State of California and Section 214.
(b) The exemption provided by this section shall not apply to any
property of an organization that owns in the aggregate 30,000 acres
or more in one county that were exempt under this section prior to
March 1, 1983, or that are proposed to be exempt, unless the
nonprofit organization that holds the property is fully independent
of the owner of any taxable real property that is adjacent to the
property otherwise qualifying for tax exemption under this section.
For purposes of this section, the nonprofit organization that holds
the property shall be considered fully independent if the exempt
property is not used or operated by that organization or by any other
person so as to benefit any officer, trustee, director, shareholder,
member, employee, contributor or bondholder of the exempt
organization or operator, or the owner of any adjacent property, or
any other person, through the distribution of profits, payment of
excessive charges or compensations, or the more advantageous pursuit
of their business or profession.
(c) The exemption provided by this section shall not apply to
property that is reserved for future development.
(d) (1) For the purposes of determining whether the property is
used for the actual operation of the exempt activity as required by
subdivision (a), consideration shall not be given to the use of the
property for either of the following:
(A) Activities resulting in direct or in-kind revenues provided
that the activities further the conservation objectives of the
property as provided in a qualified conservation management plan for
the property. These revenues may include, but are not
limited to, include those revenues derived from
grazing leases, fees for events or recreational activities,
or fees for permits hunting and camping permits, rents
from persons performing caretaking activities who reside in
dwellings on the property, and admission fees collected for purposes
of public enjoyment .
(B) Any lease of the property for a purpose that furthers the
conservation objectives of the property as provided in a qualified
conservation management plan for the property.
(2) The activities and lease described in paragraph (1) may not
generate unrelated business income.
(3) For purposes of this subdivision, a "qualified conservation
management plan" means a plan that satisfies all of the following:
(A) Identifies both of the following:
(i) That the foremost purpose and use of the property is for the
preservation of native plants or animals, biotic communities,
geological or geographical formations of scientific or educational
interest, or as open-space lands used solely for recreation and for
the enjoyment of scenic beauty.
(ii) The overall conservation management goals, including, but not
limited to, identification of permitted activities, and actions
necessary to achieve the goals.
(B) Describes both of the following:
(i) The natural resources and recreational attributes of the
property.
(ii) Potential threats to the conservation values or areas of
special concern.
(C) Contains a timeline for planned management activities and for
regular inspections of the property, including existing structures
and improvements.
(e) This section shall be operative from the lien date in 1983 to
and including the lien date in 2022, after which date this section
shall become inoperative, and as of January 1, 2023, this section is
repealed.
(f) The amendments made by Section 4 of Chapter 354 of the
Statutes of 2004 shall apply with respect to lien dates occurring on
and after January 1, 2005.
(g) The amendments made to this section by the act adding this
subdivision shall apply commencing with the lien date for the 2013-14
fiscal year.
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.
SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any property tax revenues lost by it
pursuant to this act.
SEC. 4. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.