Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011
 

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

CHAPTER 1. Taxation Base

Article 1. Taxable and Exempt Property

Section 237

237. Exemption; Indian Tribal-owned low-income rental housing. (a) (1) Subject to the requirements set forth in paragraph (2), there is exempt from taxation under this part that portion of the assessed value of property, owned and operated by a federally recognized Indian tribe or its tribally designated housing entity, that corresponds to that portion of the property that is continuously available to, or occupied by, lower income households, as defined in Section 50079.5 of the Health and Safety Code or applicable federal, state, or local financing agreements, at rents that do not exceed those prescribed by Section 50053 of the Health and Safety Code, or rents that do not exceed those prescribed by the terms of the applicable federal, state, or local financing agreements or financial assistance agreements.

(2) The exemption set forth in subdivision (a) applies only if the property and entity meet the following requirements:

(A) At least 30 percent of the property's housing units are either continuously available to, or occupied by, lower income households, as defined in Section 50079.5 of the Health and Safety Code or applicable federal, state, or local financing agreements, at rents that do not exceed those prescribed by Section 50053 of the Health and Safety Code, or rents that do not exceed those prescribed by the terms of the applicable federal, state, or local financing agreements or financial assistance agreements.

(B) The housing entity is nonprofit.

(C) No part of the net earnings of the housing entity inure to the benefit of any private shareholder or individual.

(b) In lieu of the tax imposed by this part, a tribe or tribally designated housing entity may agree to make payments to a county, city, city and county, or political subdivision of the state for services, improvements, or facilities provided by that entity for the benefit of a low-income housing project owned and operated by the tribe or tribally designated housing entity. Any payments in lieu of tax may not exceed the estimated cost to the city, county, city and county, or political subdivision of the state of the services, improvements, or facilities to be provided.

(c) A tribe or tribally designated housing entity applying for an exemption under this section shall provide the following documents to the assessor:

(1) Documents establishing that the designating tribe is federally recognized.

(2) Documents establishing that the housing entity has been designated by the tribe.

(3) Documents establishing that there is a deed restriction, agreement, or other legally binding document requiring that the property be used in compliance with subparagraph (A) of paragraph (2) of subdivision (a).

(d) This exemption shall be known as the "tribal housing exemption."

History.—Added by Stats. 1999, Ch. 941 (SB 1231), in effect January 1, 2000. Stats. 2000, Ch. 601 (AB 659), in effect September 24, 2000, added paragraph designation (1) to the former first sentence of subdivision (a), substituted "Subject to the requirements . . . assessed value of property," for "Property" before "owned and operated", and substituted ", that corresponds . . . assistance agreements" for "is not subject to taxation under this part" after "housing entity" therein; created new paragraph (2) by adding "The exemption set forth in subdivision (a) applies only" to the balance of the former first sentence commencing with "if the property", designated former paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively, of new paragraph (2) of subdivision (a), and substituted "At least 30 percent . . . assistance agreements." for the former first sentence of former paragraph (1) which provided that "The property is used exclusively and solely for the charitable purpose of providing rental housing and related facilities for tenants who are persons of low income (as defined in Section 50093 of the Health and Safety Code)." therein; deleted "providing" after "state for", and added "provided" after "facilities" in the first sentence of subdivision (b); and substituted "requiring that the property be used in compliance with subparagraph (A) of paragraph (2) of subdivision (a)." for "restricting the property's use to low-income housing and that provides that the property's housing units are continuously available to or occupied by persons who are low income, as defined by Section 50093 of the Health and Safety Code, at rents that do not exceed those prescribed by Section 50053 of the Health and Safety Code, or, to the extent that the terms of federal, state, or local financing or financial assistance conflict with that section, rents that do not exceed those prescribed by the terms of the financing agreements or financial assistance agreements." after "binding document" in the first sentence of paragraph (3) of subdivision (c). Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, substituted "recognized" for "designated" after "by a federally", added "or applicable federal, state, or local financing agreements," after "Health and Safety Code", deleted ", to the extent that the terms of federal, state, or local financing or financial assistance conflict with that section," after "Health and Safety Code, or", and added "applicable federal, state, or local" after "terms of the" in the first sentence of paragraph (1), and added "or applicable federal, state, or local financing agreements" after "Health and Safety Code", deleted ", or to the extent that the terms of federal, state, or local financing or financial assistance conflict with that section," after the "Health and Safety Code, or", and added "applicable federal, state, or local" after "terms of the" in the first sentence of subparagraph (A) of paragraph (2) of subdivision (a); and added subdivision (d).

Note.—Section 41 of Stats. 1999, Ch. 941 (SB 1231) provided that notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.

Note.—Section 4 of Stats. 2000, Ch. 601 (AB 659) provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.