BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2207|
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THIRD READING
Bill No: AB 2207
Author: Gordon (D)
Amended: 7/5/12 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 8-0, 6/28/12
AYES: Wolk, Dutton, DeSaulnier, Fuller, Hernandez, La
Malfa, Liu, Yee
NO VOTE RECORDED: Kehoe
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/16/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
ASSEMBLY FLOOR : 75-0, 5/29/12 - See last page for vote
SUBJECT : Property taxation: welfare exemption: nature
resources and
opens-space lands
SOURCE : California Council of Land Trusts
DIGEST : This bill prohibits county assessors from
considering specified revenues and uses of property for
purposes of determining whether a property dedicated to
open-space and natural resource preservation qualifies for
the welfare property tax exemption.
ANALYSIS : Existing property tax law, in accordance with
the California Constitution allows the Legislature to
CONTINUED
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exempt property used for charitable purposes, and owned by
nonprofit entities organized and operated for charitable
purposes, none of whose income inure to the benefit of any
private shareholder or individual. The Legislature
subsequently enacted this exemption, commonly known as the
"welfare exemption."
The Legislature additionally enacted a welfare exemption
from property tax for property that is used exclusively for
the preservation of native plants and animals, biotic
communities, geological or geographical formations of
scientific or educational interest, or open-space lands
used solely for recreation and for enjoyment of scenic
beauty. The land must be open to the general public
subject to reasonable restrictions, and owned and operated
by a scientific or charitable fund, foundation, limited
liability company, or corporation, the primary interest of
which is to preserve the land. The Legislature extended
the exemption until January 1, 2023 last year (AB 703,
Gordon, Chapter 575, Statutes of 2011). According to BOE,
properties exempt pursuant to this section include
qualified properties owned by nonprofit organizations such
as the Nature Conservancy, the Trust for Public Land,
Anza-Borrego Foundation, Big Sur Land Trust, Peninsula Open
Space Trust, Napa County Land Trust, Save the Redwoods
League, Santa Catalina Island Conservancy, and Mountains
Restoration Trust.
This bill provides for the purposes of determining whether
the property is eligible for the welfare exemption for land
used exclusively preservation of native plants and animals,
biotic communities, geological or geographical formations
of scientific or educational interest, or open-space lands
used solely for recreation and for enjoyment of scenic
beauty, consideration shall not be given to property for
the use of property for either:
1.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, include those revenues from
grazing leases, hunting and camping permits, rents from
persons performing caretaking activities who reside in
dwellings on the property, and admission fees collected
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for purposes of public employment.
2.Any lease that furthers the conservation objectives of
the property in a qualified conservation management plan
that identifies:
Identifies the foremost purpose and use of the
property is for preservation of native plants and
animals, biotic communities, geological or
geographical formations of scientific or educational
interest, or open-space lands used solely for
recreation and for enjoyment of scenic beauty,
Points out the overall conservation management
goals, including, but not limited to identification of
permitted activities, and actions necessary to achieve
the goals,
Describes the natural resources and recreational
attributes of the property,
Designates the potential threats to the
conservation values or areas of special concern, and
Contains a timeline for planned management
activities and for regular inspections of the
property, including existing structures and
improvements.
This bill provides that should any of the above activities
and leases may not generate unrelated business income. The
measure applies in the 2013-14 fiscal year.
Comments
According to the author's office, this bill provides the
much needed clarification to the state's property tax
exemption for lands held by nonprofit organizations for
habitat, open space and recreational uses. It directs that
such activities do not disqualify the nonprofit from the
exemption so long as the activity is consistent with the
conservation purposes and management plan for the property.
If this bill is successfully passed, the result will be an
important clarification of the law, properties throughout
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California will be treated similarly for the purposes of
this law, and the purpose for which the exemption was
created will be advanced.
Related Legislation
AB 703 (Gordon), Chapter 575, Statutes of 2011, extended
the welfare exemption for property dedicated to natural
resource protection and open-space purposes until January
1, 2022.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Estimated statewide property tax revenue reduction of
approximately $225,000 annually (foregone revenues).
Assuming 50 percent of the statewide property tax
revenues offset General Fund obligations to schools
pursuant to Proposition 98 minimum funding guarantees,
the General Fund impact would be approximately $113,000
due to increased state backfill provided to schools.
Staff notes that actual state impacts may vary as the
school share of property tax is typically in the range of
45 percent to 60 percent in most parts of the state.
Likely minor reimbursable mandate costs related to the
imposition of new duties on local tax officials since the
bill revises the criteria that assessors would use to
determine eligibility for the welfare exemption that
applies to property dedicated to open-space and natural
resource preservation (General Fund).
SUPPORT : (Verified 8/17/12)
California Council of Land Trusts (source)
Audubon California
Big Sur Land Trust
Bodega Land Trust
Catalina Island Conservancy
Elkhorn Slough Foundation
Land Trust of Santa Cruz County
Marin Agricultural Land Trust
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Mendocino Land Trust
Ojai Valley Land Trust
Peninsula Open Space Trust
Redwood Coast Land Conservancy
Save Mount Diablo
Save the Redwoods League
Sierra Foothill Conservancy
Solano Land Trust
Wildlife Heritage Foundation
ASSEMBLY FLOOR : 75-0, 5/29/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman,
Harkey, Hayashi, Roger Hern�ndez, Hill, Huber, Hueso,
Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Portantino, Silva, Skinner,
Smyth, Solorio, Swanson, Torres, Valadao, Wagner,
Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Cedillo, Fletcher, Gorell, Halderman,
Hall
AGB:n 8/20/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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