Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2010
 

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

CHAPTER 1. Taxation Base

Article 1. Taxable and Exempt Property

Section 201.4

201.4. City of Palm Springs; possessory interests. (a) The possessory interests of a nonprofit entity, solely owned by the City of Palm Springs, in property which is located wholly within the boundaries of an Indian reservation and owned by the United States in trust for named Indian allottees, and which is leased to the City of Palm Springs under a master lease a portion of which for purposes of financing is subleased to a nonprofit entity, and subleased by that nonprofit entity to the City of Palm Springs which devotes that property exclusively to convention or related public purposes, shall be deemed to be property owned by the City of Palm Springs.

(b) Property which is owned in fee by a nonprofit entity in which the City of Palm Springs has the sole ownership interest, and leased by that nonprofit entity to the City of Palm Springs which devotes that property exclusively to convention or related public purposes, shall be deemed to be property owned by the City of Palm Springs.

(c) This section shall not be construed to exempt from ad valorem property taxation any possessory interest in otherwise tax-exempt property not devoted exclusively to convention or related public purposes or any property or possessory interest in property of the City of Palm Springs located outside of its boundaries.

History.—Added by Stats. 1989, Ch. 539, in effect September 20, 1989.

Note.—Sections 2 and 4 of Stats. 1989, Ch. 539, state the Legislature's findings, declarations and intent in enacting that act as follows: " . . . a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution due to the following unique circumstances:

The City of Palm Springs owns and operates public facilities located upon one of three assessor's parcels which are or will be leased from the United States of America as trustee for certain Indian allottees. That master lease serves the function of pooling rental income from all three parcels for distribution to the numerous Indian allottees. The one leased parcel used by the City of Palm Springs exclusively for public purposes is subleased to a nonprofit public benefit corporation, the sole ownership interest of which is held by the city. That nonprofit entity in turn has financed and constructed the public facility and sublet the property to the City of Palm Springs. The subleases require that any ad valorem taxes assessed against the property or possessory interest therein be paid by the sublessee. An adjoining parcel owned in fee by the same nonprofit entity is likewise leased to the City of Palm Springs and used by the city for public purposes. The unique nature of ownership and financing and leasing arrangements do not permit a total exemption from taxation under current law of these parcels even though used exclusively for public purposes.

It is the intent of the Legislature in enacting this act that the provisions of Article 5 (commencing with Section 5081) of Chapter 4 of Part 9 of Division 1 of the Revenue and Taxation Code shall apply to the subject property, including any taxable possessory interest in the subject property acquired by the City of Palm Springs or deemed to be owned by the city, and that the date of apportionment of taxes pursuant to Section 5082 of the Revenue and Taxation Code shall be the date upon which the City of Palm Springs acquires the master lease referred to the Sections 1 and 2."