Property taxation: exemption: low-value properties and tribal housing.

(1) The California Constitution authorizes the Legislature, with the approval of 23 of the membership of each house, to allow a county board of supervisors to exempt from property taxation those properties having a value too low to justify the costs of assessment and collection. Existing property tax law implementing this authority generally limits any exemption granted under this constitutional provision by a county board of supervisors to real property with a total base year value, or personal property with a full value, not exceeding $10,000. That law, however, increases, for lien dates occurring on or after January 1, 2020, and before January 1, 2025, the $10,000 limitation to $50,000 in the case of a possessory interest. For lien dates occurring on or after January 1, 2025, the $50,000 limitation increase applies only to possessory interests for a temporary and transitory use in specified facilities. This bill would extend the $50,000 limitation increase applicable to possessory interests generally to lien dates occurring on or after January 1, 2020, and before January 1, 2030. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. (2) The California Constitution authorizes the Legislature to exempt from taxation property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity. Pursuant to this constitutional authority, existing law exempts from property taxation, subject to specified requirements, property owned and operated by a federally recognized Indian tribe or its tribally designated housing entity that is continuously available to, or occupied by, lower income households, as defined. This bill would also authorize, for a property that has received a reservation of specified federal low-income housing tax credits, a limited partnership that includes a federally recognized Indian tribe or its tribally designated housing entity as the sole partner to claim the above-described property exemption. The bill would make conforming changes. (3) By imposing new duties upon local tax officials, 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 the statutory provisions noted above. (4) 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. (5) This bill would take effect immediately as a tax levy.