Property taxation: low-value exemption: possessory interests in publicly owned streets and sidewalks.

The California Constitution authorizes the Legislature, with the approval of 23 of the membership of each house, to allow a county board of supervisors to exempt from property taxation those properties having a 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, or $50,000 for lien dates occurring on or after January 1, 2020, and before January 1, 2025, in the case of possessory interests and, in the case of certain possessory interests, for lien dates occurring on or after January 1, 2025. This bill would instead apply the above-described authority for an exemption of $50,000 to lien dates occurring on or after January 1, 2020, and before January 1, 2030, in the case of possessory interests and, in the case of certain possessory interests, to lien dates occurring on or after January 1, 2030. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would declare findings and reporting requirements in compliance with this requirement, including that each county assessor report to the State Board of Equalization, as specified, and post that information on its internet website. By imposing additional duties on each county assessor, 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 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.