SB 1152, as amended, Anderson. Property taxation: exemptions: veterans’ organizations.
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.
This bill would provide that thebegin delete veteran’send deletebegin insert veteransend insertbegin insert’end insert organization exemption shall not be denied to a property on the basis that the property is used for fraternal, lodge, or social club purposes, and would make specific findings and declarations in that regard. The bill would also provide that the exemption
shall not apply to any portion of a property that consists of a bar where alcoholic beverages are served.
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: no.
The people of the State of California do enact as follows:
Section 215.1 of the Revenue and Taxation Code
2 is amended to read:
(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’ organization that
7has been chartered by the Congress of the United States, organized
8and operated for charitable purposes, when the same are used solely
9and exclusively for the purpose of the organization, if not
10conducted for profit and no part of the net earnings of which inures
11to the benefit of any private individual or member thereof, shall
12be 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
15begin deletesection andend deletebegin insert section,end insert subdivision (b) of Section 4 of Article XIII of
16the Californiabegin delete Constitutionend deletebegin insert Constitution,end insert and paragraphs (1) to (4),
17inclusive, (6), and (7) of subdivision (a) of Section 214.
18(c) (1) The exemption specified by subdivision (a) shall not be
19denied to a property on the basis that the property is used for
20fraternal, lodge, or social club purposes.
21(2) With regard to this subdivision, the Legislature finds and
22declares all of the following:
23(A) The exempt activities of a veterans’ organization as
24described in subdivision (a) qualitatively differ from the exempt
25activities of other nonprofit entities that use property for fraternal,
26lodge, or social club purposes in that the exempt purpose of the
P3 1veterans’ organization is to conduct programs to perpetuate the
2memory of deceased veterans and members of the Armed Forces
3and to comfort their survivors, to conduct programs for religious,
4charitable, scientific, literary, or educational purposes, to sponsor
5or participate in activities of a patriotic nature, and to provide social
6and recreational activities for their members.
7(B) In light of this distinction, the use of
real property by a
8veterans’ organization as described in subdivision (a), for fraternal,
9lodge, or social club purposes is central to that organization’s
10exempt purposes and activities.
11(C) In light of the factors set forth in subparagraphs (A) and
12(B), the use of real property by a veterans’ organization as
13described in subdivision (a) for fraternal, lodge, or social club
14purposes, constitutes the exclusive use of that property for a
15charitable purpose within the meaning of subdivision (b) of Section
164 of Article XIII of the California Constitution.
17(d) The exemption provided for in this section shall not apply
18to any portion of a property that consists of a bar where alcoholic
19beverages are served. The portion of the property ineligible for
20the veterans’ organization exemption
shall be that area used
21primarily to prepare and serve alcoholic beverages.
22(e) An organization that files a claim for the exemption provided
23for in this section shall file with the assessor a valid organizational
24clearance certificate issued pursuant to Section 254.6.
25(f) This exemption shall be known as the “veterans’ organization
26exemption.”
Notwithstanding Section 2229 of the Revenue and
28Taxation Code, no appropriation is made by this act and the state
29shall not reimburse any local agency for any property tax revenues
30lost by it pursuant to this act.
This act provides for a tax levy within the meaning of
32Article IV of the Constitution and shall go into immediate effect.
O
94