Property tax: exemptions: personal property used for space flight activities.

The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 23 vote of the membership of each house. Pursuant to this constitutional authorization, existing property tax law, for the January 1, 2014, lien date to and including the January 1, 2024, lien date, exempts qualified property, as defined, for use in space flight, including tangible personal property that has space flight capacity, as specified. Existing law repeals this exemption as of July 1, 2025. This bill would extend the above-described repeal date from July 1, 2025, to July 1, 2033, thereby extending operation of the exemption for qualified property for use in space flight. The bill, on or after January 1, 2022, would also expand the exemption for qualified property used in space flight to include tangible personal property used for space flight activities, including tangible personal property that has a role as ground support equipment for space flight launch preparation and operations, as specified, or that has role in testing space flight engines and components at a test site, as specified. By expanding the scope of this exemption, by extending the operation of this exemption, and by requiring county assessors to provide specified information, this bill would impose a state-mandated local program. Existing law requires any bill authorizing a new tax expenditure, as defined to include tax credits, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would include findings and reporting requirements in compliance with this requirement. 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. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. This bill would take effect immediately as a tax levy.