Property taxation: exemptions: Chiquita Canyon elevated temperature landfill event.

Plain English Breakdown

The official source material does not specify how many microbusinesses will benefit from the tax exemption.

Property Tax Exemptions for Chiquita Canyon Landfill Event

The bill exempts property affected by the Chiquita Canyon elevated temperature landfill event from property taxes and provides tax relief to certain microbusinesses.

What This Bill Does

• Exempts real property impacted by the Chiquita Canyon elevated temperature landfill event from property taxation for lien dates between January 1, 2025, and January 1, 2030.
• Requires county assessors to identify properties affected by the Chiquita Canyon incident and apply tax exemptions accordingly.
• Exempts corporations that are microbusinesses incorporated in California from paying the annual minimum franchise tax starting January 1, 2025.
• Also exempts limited liability companies (LLCs), limited partnerships, and limited liability partnerships that are microbusinesses from an annual tax equal to the minimum franchise tax.

Who It Names or Affects

• Property owners affected by the Chiquita Canyon elevated temperature landfill event
• Corporations, LLCs, limited partnerships, and limited liability partnerships that are microbusinesses

Terms To Know

lien date

The specific date when property taxes are due and assessed.

microbusinesses

Small businesses that meet certain criteria, such as having fewer than a specified number of employees or generating less than a set amount in annual revenue.

Limits and Unknowns

• The bill does not provide state reimbursement for property tax revenues lost by local agencies due to the exemptions.
• It is unclear how many microbusinesses will benefit from the tax exemption on minimum franchise tax and annual taxes.

Official Summary Text

SB 816, as amended, Valladares.
Taxation: corporations: minimum franchise tax: limited liability companies: annual tax: microbusinesses.
Property taxation: exemptions: Chiquita Canyon elevated temperature landfill event.
The California Constitution declares that all property is taxable and establishes or authorizes various exemptions from tax for real property, including, among others, a homeowners’ exemption in the amount of $7,000 of the full value of a dwelling unless the dwelling receives another real property exemption.
This bill, for lien dates occurring on or after January 1, 2025, to, and including, January 1, 2030, would statutorily exempt from property taxation real property impacted by the Chiquita Canyon elevated temperature landfill event, as defined. By imposing additional duties on county assessors, the 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.
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.
Existing law imposes an annual minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law also imposes an annual tax in an amount equal to the minimum franchise tax on every limited partnership, limited liability partnership, and limited liability company doing business in this state, as specified.
This bill, for taxable years beginning on or after January 1, 2025, would exempt corporations that are microbusinesses, as specified, incorporated in this state from the minimum franchise tax. The bill would also exempt a limited partnership, limited liability partnership, and limited liability company that are microbusinesses, as specified, from the annual tax.
This
bill would take effect immediately as a tax levy.

Current Bill Text

Download Bill PDF