Plain English Breakdown
The specific definitions of 'community-serving small business or nonprofit' are referenced but not provided in the summary text.
AB-613: Property Tax Rules for Affordable Commercial Leases
This law requires county assessors to count specific renewable leases between commercial community ownership entities and qualifying small businesses or nonprofits as enforceable restrictions when calculating property taxes.
What This Bill Does
- Requires county assessors to consider certain renewable commercial leases as enforceable restrictions that affect land value for tax purposes.
- Adds these lease agreements to the list of existing government-imposed restrictions, such as zoning and contracts with agencies.
- Includes required information about goals, performance indicators, and data collection because the bill creates a new tax expenditure.
- States that if state-mandated costs are found by the Commission on State Mandates, local agencies may receive reimbursement under existing rules.
- Declares that no money will be provided to reimburse local agencies for lost property tax revenue caused by this law.
Who It Names or Affects
- County assessors who value real property for taxation
- Commercial community ownership entities as defined in the bill
- Community-serving small businesses or nonprofits, as defined in the bill
Terms To Know
- Enforceable restrictions
- Rules, contracts, or laws that limit how land can be used and affect its value.
- Commercial community ownership entity
- A specific type of organization defined in the bill that owns land for commercial use by others.
- Tax expenditure
- Money lost to the government because a law reduces taxes or provides special tax treatment, requiring goals and data collection.
Limits and Unknowns
- The bill does not define exactly what qualifies as a 'community-serving small business' or 'nonprofit', only stating they are defined in the text.
- It is unclear how much property value will change for each specific lease until assessors apply the new rules.
- Reimbursement for local agency costs depends on whether the Commission on State Mandates determines that state-mandated costs exist.