Property taxation: welfare exemption: nature resources and open-space lands.

Existing property tax law, in accordance with the California Constitution, provides for a welfare exemption under which property used exclusively for religious, hospital, scientific, or charitable purposes and owned and operated by funds, foundations, or corporations meeting certain statutory requirements is exempt from taxation. Existing law also provides that property used exclusively for the preservation of specified nature resources or open-space lands meeting other specified criteria is deemed to be included within the welfare exemption. This bill would, commencing with the 2013–14 fiscal year, provide that, for the purposes of determining whether the property is used for the actual operation of the exempt activity described above, consideration shall not be given to the use of the property for activities resulting in direct or in-kind revenues, as specified, provided that the activities further the conservation objectives of the property, or for any lease of the property for a purpose that furthers the conservation objectives of the property, as provided. This bill would also make a technical, nonsubstantive change to this provision. By imposing new duties upon local tax officials with respect to the welfare exemption, this 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 these statutory provisions. Section 2229 of the Revenue and Taxation Code requires the Legislature 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 Section 2229 of the Revenue and Taxation Code, 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.