Real property tax: welfare exemption: moderate-income housing.

Plain English Breakdown

The bill summary does not provide details on specific penalties for false claims or how local agencies will be reimbursed for lost property tax revenues.

Real Property Tax Exemption for Moderate-Income Housing

The bill provides a partial property tax exemption for residential rental properties that serve low- and moderate-income households.

What This Bill Does

• Provides a partial welfare exemption for certain residential rental properties used by low- and moderate-income households.
• Requires owners of these properties to provide specific certifications about the use of their property.
• Expands duties for local tax officials related to this new exemption.

Who It Names or Affects

• Owners and managers of residential rental properties that serve low- and moderate-income households.
• Local tax officials responsible for enforcing the property tax laws.

Terms To Know

Welfare Exemption

A reduction in property taxes given to certain types of non-profit organizations or specific housing properties that serve low-income residents.

Moderate-Income Housing

Housing units designated for individuals and families with incomes within a specified range, typically below the median income level but above very low-income levels.

Limits and Unknowns

• The bill does not specify how local agencies will be reimbursed for property tax revenues lost due to this exemption.
• It is unclear what specific penalties will apply if an owner falsely claims the welfare exemption.

Official Summary Text

SB 1415, as introduced, Arreguín.
Real property tax: welfare exemption: moderate-income housing.
Existing property tax law, pursuant to constitutional authorization, 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. That law provides a partial welfare exemption in the case of residential rental property used for lower income households, as specified, calculated as 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.
This bill would provide a partial welfare exemption in the case of certain residential rental property used for low- and moderate-income households. The partial exemption would be equal to that
percentage of the value of the property that is equal to the percentage that the number of units serving low- and moderate-income households, as defined, represents of the total number of residential units, as provided. The bill would require an owner to make specified certifications relating to the use of the property. By expanding the duties of local tax officials, and by expanding the crime of perjury, the bill would impose a state-mandated local program.
This bill would declare that its provisions are severable.
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.
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.
This bill would take effect immediately as a tax levy.

Current Bill Text

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