Housing authorities: property taxation.

The California Constitution provides that all property is taxable and requires property to be taxed in proportion to its full value. The California Constitution exempts certain property from property taxation, including property owned by a local government, as specified. The California Constitution authorizes the Legislature to exempt from taxation, in whole or in part, property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity. The Housing Authorities Law establishes a public body corporate and politic, known as a housing authority, within each county and city. Upon enactment of a resolution by the county or city declaring that there is need for a housing authority to function, existing law authorizes the authority to undertake various specified activities relating to affordable housing. Existing law specifies that the property and bonds of a housing authority are exempt from taxation. This bill would specify that property held by a nonprofit public benefit corporation that is controlled by a housing authority, as described, is exempt from taxation. The bill would require any outstanding ad valorem tax, interest, or penalty that was levied on the property of a housing authority to be canceled, and any tax, interest, or penalty levied that was paid prior to January 1, 2024, to be refunded. 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 make findings and declarations related to a gift of public funds.