Amended in Senate March 26, 2014

Senate BillNo. 1152


Introduced by Senator Anderson

February 20, 2014


An actbegin insert to amend Section 215.1 of the Revenue and Taxation Code,end insert relating to taxationbegin insert, to take effect immediately, tax levyend insert.

LEGISLATIVE COUNSEL’S DIGEST

SB 1152, as amended, Anderson. Property taxation:begin delete exemptions.end deletebegin insert exemptions: veterans’ organizations.end insert

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Existing property tax law establishes a veterans’ organization exemption under which property is exempt from taxation if, among other things, that property is used exclusively for charitable purposes and is owned by a veterans’ organization.

end insert
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This bill would provide that property owned by an organization that satisfies the requirements for the veterans’ organization exemption may not be denied the veterans’ organization exemption because the property is occasionally made available for private rentals as a service to the community, under specified conditions.

end insert
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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.

end insert
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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.

end insert
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This bill would take effect immediately as a tax levy.

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begin delete

Existing property tax law, in accordance with the California Constitution, provides for a “welfare exemption” for property used exclusively for religious, hospital, scientific, or charitable purposes, and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met.

end delete
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Existing property tax law exempts from taxation all personal property owned by certain veteran organizations, when the property is used solely and exclusively for the purposes of the organization, and certain qualifying criteria are met.

end delete
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This bill would declare the intent of the Legislature to enact legislation relating to those provisions.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 215.1 of the end insertbegin insertRevenue and Taxation Codeend insert
2begin insert is amended to read:end insert

3

215.1.  

(a) All buildings, and so much of the real property on
4which the buildings are situated as may be required for the
5convenient use and occupation of the buildings, used exclusively
6for charitable purposes, owned by a veterans’ organizationbegin delete whichend delete
7begin insert thatend insert has been chartered by the Congress of the United States,
8organized and operated for charitable purposes, when the same
9are used solely and exclusively for the purpose of the organization,
10if not conducted for profit and no part of the net earnings of which
11inures to the benefit of any private individual or member thereof,
12shall be exempt from taxation.

13(b) The exemption provided for in this section shall apply to
14the property of all organizations meeting the requirements of this
15section and subdivision (b) of Section 4 of Article XIII of the
16California Constitution and paragraphs (1) to (7), inclusive, of
17subdivision (a) of Section 214.

18(c) An organization that files a claim for the exemption provided
19for in this section shall file with the assessor a valid organizational
20clearance certificate issued pursuant to Section 254.6.

21(d) begin insert(1)end insertbegin insertend insertThis exemption shall be known as the “veterans’
22organization exemption.”

begin insert

23(2) Property owned by an organization that satisfies the
24requirements of Section 215 or this section shall not be denied the
P3    1veterans’ organization exemption because the property is
2occasionally made available for private rentals as a service to the
3community, provided that the amount of rental fee charged is
4limited to that amount necessary to reimburse the veterans’
5organization for its costs in making the rental available, and any
6proceeds from the rentals are used exclusively for the charitable
7purposes of the organization.

end insert
begin insert
8

begin insertSEC. 2.end insert  

Notwithstanding Section 2229 of the Revenue and
9Taxation Code, no appropriation is made by this act and the state
10shall not reimburse any local agency for any property tax revenues
11lost by it pursuant to this act.

end insert
12begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

This act provides for a tax levy within the meaning of
13Article IV of the Constitution and shall go into immediate effect.

end insert
begin delete
14

SECTION 1.  

It is the intent of the Legislature to enact
15legislation relating to property tax exemptions for property used
16exclusively for religious, hospital, scientific, or charitable purposes,
17and personal property owned by federally chartered veteran
18organizations.

end delete


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