AB 1206 — Property taxation: affordable housing: welfare exemption.

Summary

(1) 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. Under existing property tax law, property that meets these requirements that is used exclusively for rental housing and related facilities is entitled to a partial exemption, equal to that percentage of the value of the property that is equal to the percentage that the number of units serving lower income households represents of the total number of residential units, in any year that any of certain criteria apply, including that the property be subject to a legal restriction that provides that units designated for use by lower income households are continuously available to or occupied by lower income households, at rents not exceeding specified limits. For the 2018–19 fiscal year through the 2027–28 fiscal year, in the case of an owner of property receiving a low-income housing tax credit under specified federal law, existing property tax law requires that a unit continue to be treated as occupied by a lower income household for these purposes if the occupants were lower income households on the lien date in the fiscal year in which their occupancy of the unit commenced and the unit continues to be rent restricted, notwithstanding an increase in the income of the occupants of the unit to 140% of area median income, adjusted for family size. This bill, for the 2022–23 fiscal year through the 2027–28 fiscal year, would require that a unit continue to be treated as occupied by a lower income household, as described above, if the owner is a community land trust whose land is leased to low-income households, subject to a contract that complies with specified requirements. This bill would require a claim for a welfare exemption pursuant to this requirement to be accompanied by an affidavit containing specified information regarding the units for which the exemption is claimed and would provide that the affidavit is not subject to public disclosure. (2) Existing law requires any bill authorizing a new tax expenditure in the Sales and Use Tax Law, Personal Income Tax Law, or Corporation Tax Law to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This property tax bill would include the additional information that is required for any bill authorizing a new tax expenditure in the Sales and Use Tax Law, Personal Income Tax Law, or Corporation Tax Law. (3) The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose. This bill would make legislative findings to that effect. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. (4) By adding to the duties of local tax officials, and expanding the crime of perjury by requiring an affidavit, 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 with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (5) Existing law requires the state 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 those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. (6) This bill would take effect immediately as a tax levy.

Bill Text

• Chaptered 09/28/22 - Chaptered Current pdf September 28, 2022
• Enrolled 08/29/22 - Enrolled pdf August 29, 2022
• Amended 08/16/22 - Amended Senate pdf August 16, 2022
• Amended 01/24/22 - Amended Assembly pdf January 24, 2022
• Amended 01/03/22 - Amended Assembly pdf January 03, 2022
• Introduced 02/19/21 - Introduced pdf February 19, 2021
• AB1206 View text html

Action History

1. September 28, 2022

   Chaptered by Secretary of State - Chapter 636, Statutes of 2022.

2. September 28, 2022

   Approved by the Governor.

3. August 31, 2022

   Enrolled and presented to the Governor at 4 p.m.

4. August 25, 2022

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.).

5. August 25, 2022

   Assembly Rule 77(a) suspended.

6. August 24, 2022

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 26 pursuant to Assembly Rule 77.

7. August 24, 2022

   Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 5076.).

8. August 17, 2022

   Read second time. Ordered to third reading.

9. August 16, 2022

   Read third time and amended. Ordered to second reading.

10. August 11, 2022

    Read second time. Ordered to third reading.

11. August 11, 2022

    From committee: Do pass. (Ayes 6. Noes 0.) (August 11).

12. August 02, 2022

    In committee: Referred to suspense file.

13. June 01, 2022

    From committee: Do pass and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 1). Re-referred to Com. on APPR.

14. May 04, 2022

    Referred to Com. on GOV. & F.

15. February 01, 2022

    In Senate. Read first time. To Com. on RLS. for assignment.

16. January 31, 2022

    Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0. Page 3438.)

17. January 25, 2022

    Read second time. Ordered to third reading.

18. January 24, 2022

    Read second time and amended. Ordered returned to second reading.

19. January 20, 2022

    From committee: Amend, and do pass as amended. (Ayes 12. Noes 0.) (January 20).

20. January 12, 2022

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (January 12). Re-referred to Com. on APPR.

21. January 11, 2022

    From committee: Do pass and re-refer to Com. on H. & C.D. (Ayes 9. Noes 0.) (January 10). Re-referred to Com. on H. & C.D.

22. January 06, 2022

    (pending re-refer to com. on H. & C.D.)

23. January 06, 2022

    Assembly Rule 56 suspended. (Page 3242.)

24. January 04, 2022

    Re-referred to Com. on REV. & TAX.

25. January 03, 2022

    From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

26. March 04, 2021

    Referred to Coms. on REV. & TAX. and H. & C.D.

27. February 22, 2021

    Read first time.

28. February 20, 2021

    From printer. May be heard in committee March 22.

29. February 19, 2021

    Introduced. To print.

Sponsors

• Steve Bennett · Primary
• Bloom · Cosponsor
• Mike A. Gipson · Cosponsor
• Timothy S. Grayson · Cosponsor
• Quirk · Cosponsor
• Robert Rivas · Cosponsor

Votes

Subjects