Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2018

Revenue and Taxation Code

Property Taxation

Part 4. Levy of Tax

Chapter 3. Reimbursement for Costs Mandated by the State

Article 2. General Provisions

Section 2229

2229. Limitations on property tax exemptions enacted after January 1, 1973; state reimbursement; review by Legislative Analyst. (a) Any classification or exemption of property for purposes of ad valorem property taxation enacted by the Legislature after January 1, 1973, shall be reimbursed by the state for the 1973–1974 fiscal year and for each fiscal year thereafter.

(b) For purposes of this section the actual loss of revenue does not include potential revenue from property of a type which was not being assessed and taxed on January 1, 1973.

(c) Upon appropriation of reimbursement funds by the Legislature, each county auditor shall file a claim with the Controller on or before September 30 for reimbursement of the tax loss attributable to the exemption. The Controller shall pay on or before December 30 of each year one-half of the amount claimed and shall pay the other one-half on or before April 30. The Controller may audit, or may request the State Board of Equalization to audit, any of these claims or payments. This section does not apply to classes of property affected by Sections 988, 1152, 5303, and subdivision (c) of Section 227.

(d) The Legislative Analyst shall review any classification or exemption of property to which this section is applicable and shall report to the Legislature on the general economic effects thereof. This report shall be submitted at least one year prior to the date on which the classification or exemption is scheduled to terminate.

(e) Any claim alleging that the reimbursement requirements of this section have not been complied with shall be presented directly to the Legislature and Sections 905.2 and 945.4 of the Government Code shall not apply thereto.

History.—Stats. 1977 Ch. 309, in effect July 8, 1977 added "subdivision (b) of" in the fourth paragraph and added the sixth paragraph. Stats. 1984, Ch. 1325, in effect September 25, 1984, substituted the fourth paragraph for the former fourth paragraph, which provided that "Claims for reimbursement shall be filed according to the procedure provided in Section 16113 of the Government Code. Upon appropriation of reimbursement funds by the Legislature, the Controller shall pay such claims at the times provided in subdivision (b) of Section 16115 of the Government Code. Such claims shall be audited as provided in Section 16114 of the Government Code". Stats. 1986, Ch. 608, effective January 1, 1987, substituted "section does" for "paragraph shall" after "This", deleted "219," after "Sections", deleted "991, 992," after "988,", deleted "5523," after "5303," and deleted "of the Revenue and Taxation Code" after "227" in the fourth sentence of the fourth paragraph; substituted "This" for "Such" in the second sentence of the fifth paragraph; and deleted "the provisions of" after "Legislature and" in the sixth paragraph. Stats 1994, Ch. 229, in effect January 1, 1995, added subdivision letter designations (a), (b), (c), (d), (e); and substituted "Any" for "No" before "classification" at the beginning of, and deleted "extend for more than five years or shall exempt more than 75 percent of the value thereof from such taxation. Any such classification or exemption enacted by the Legislature after January 1, 1973, shall" after "shall" in subdivision (a).