Taxation: military housing.

Existing property tax law requires that all property subject to tax be assessed at its full value, and includes certain possessory interests among those property interests that are subject to tax. Existing property tax law defines a taxable possessory interest to be a use that is independent, durable, and exclusive. Existing property tax law specifies that, for purposes of the definition of a taxable possessory interest, a possession or use is not independent if it is pursuant to a contract that includes, but is not limited to, a long-term lease for the private construction, renovation, rehabilitation, replacement, management, or maintenance of housing for active duty military personnel and their dependents, if the housing units and the private contractor constructing the housing meet specified criteria. Existing law specifies that one of these criteria is a requirement that any reduction, as specified, in property taxes on leased property used for military housing, as defined, inures solely to the benefit of the residents of the military housing through improvements. This bill would delete the requirement that the housing be for military personnel and their dependents and instead specify that the housing be for military personnel or their dependents or both. This bill would clarify that, for the purposes of the definition of a taxable possessory interest, any reduction, as specified, in property taxes on leased property used for military housing, as defined, would inure solely to the benefit of the residents of the military housing through improvements, including community improvements, as specified, and housing improvements, as specified, and the renovation and refurbishment of those improvements. This bill would authorize the private contractor to use the reasonable estimate of property tax savings to construct, or to secure financing for the construction of, the community and housing improvements to be constructed as part of the initial construction of the project, as defined. This bill would authorize the private contractor and the county assessor to agree to extend the time for the initial construction of the project, as specified. This bill would extend the time period the county assessor may make an escape assessment, as specified, by a period equal to the extension of the initial construction period agreed upon by the county assessor and the private contractor. This bill would require the private contractor to submit specified information to the county assessor, as provided, and would require the private contractor's response that was accepted by the military, and the binding project documents, for certain leases, to include specified information.