Taxation: military housing.

(1) 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. This bill would specify that a possession or use is not independent if, under a contract described above, the housing is for active duty military personnel or their dependents, or both, and would provide that the definition of a taxable possessory interest does not apply to a military housing unit managed by a private contractor, under a contract described above, that is rented to a tenant who is an unaffiliated member of the general public, as defined, and would require the private contractor to be responsible for any property taxes on housing units rented to unaffiliated members of the general public.