Property taxation: exemption: low-value properties.

The California Constitution authorizes the Legislature, with the approval of 23 of the membership of each legislative house, to allow a county board of supervisors to exempt from property taxation those properties having a full value too low to justify the costs of assessment and collection. Existing property tax law implementing this authority generally limits any exemption granted under this constitutional provision by a county board of supervisors to real property with a total base year value, or personal property with a full value, not exceeding $10,000. Existing property tax law increases this limit to $50,000 in the case of a possessory interest, for a temporary and transitory use, in a publicly owned fairground, fairground facility, convention facility, or cultural facility. This bill, for lien dates occurring on or after January 1, 2020, and before January 1, 2025, would delete this requirement that the possessory interest be for a temporary and transitory use of a publicly owned fairground, fairground facility, convention facility, or cultural facility, thereby allowing the exemption from taxation under these provisions of any possessory interest valued at $50,000 or less. The bill would include findings as to the specific goals, purposes, and objectives of the bill and require county assessors to report to the State Board of Equalization on whether and by what amount the county has increased the low-value property tax exemption for possessory interests. By adding to the duties of county assessors in this regard, the bill would impose a state-mandated local program. Existing property tax law specifies that the authority to exempt low-value properties, as described above, does not authorize an assessor to exempt or to not enroll any property of any value, unless specifically authorized by a county board of supervisors. This bill would delete this specification. The bill would also authorize an assessor, in administering the exemption, to opt either to not enroll the property on the assessment roll or to enroll the property and apply the exemption. 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.