Bill Text: CA SB1152 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Property taxation: exemptions: veterans' organizations.

Spectrum: Slight Partisan Bill (Republican 5-2)

Status: (Engrossed - Dead) 2014-06-25 - Set, first hearing. Held in committee and under submission. [SB1152 Detail]

Download: California-2013-SB1152-Amended.html

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BILL NUMBER: SB 1152	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 30, 2014
	AMENDED IN SENATE  MARCH 26, 2014

INTRODUCED BY   Senator Anderson

                        FEBRUARY 20, 2014

   An act to amend Section 215.1 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1152, as amended, Anderson. Property taxation: exemptions:
veterans' organizations.
   Existing property tax law establishes a veterans' organization
exemption under which property is exempt from taxation if, among
other things, that property is used exclusively for charitable
purposes and is owned by a veterans' organization.
   This bill would provide that property owned by an organization
that satisfies the requirements for the veterans' organization
exemption may not be denied the veterans' organization exemption
because the property is occasionally made available for private
rentals as a service to the community, under specified conditions.
   Section 2229 of the Revenue and Taxation Code requires the
Legislature 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 Section 2229 of the
Revenue and Taxation Code, 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Section 501(c)(19) of the United States Internal Revenue Code
and related federal regulations provide for the exemption for posts
or organizations of war veterans, or an auxiliary unit or society of,
or a trust or foundation for, any such post or organization that,
among other attributes, carries on programs to perpetuate the memory
of deceased veterans and members of the Armed Forces and to comfort
their survivors, conducts programs for religious, charitable,
scientific, literary, or educational purposes, sponsors or
participates in activities of a patriotic nature, and provides social
and recreational activities for their members.  
   (b) Section 215.1 of the Revenue and Taxation Code stipulates that
all buildings, and so much of the real property on which the
buildings are situated as may be required for the convenient use and
occupation of the buildings, used exclusively for charitable
purposes, owned by a veterans' organization that has been chartered
by the Congress of the United States, organized and operated for
charitable purposes, when the same are used solely and exclusively
for the purpose of the organization, if not conducted for profit and
no part of the net earnings of which ensures to the benefit of any
private individual or member thereof, are exempt from taxation. 

   (c) The Chief Counsel of the State Board of Equalization
concluded, based on a 1979 appellate court decision, that only parts
of American Legion halls are exempt from property taxation and that
other parts, such as billiard rooms, card rooms, and similar areas,
are not exempt.  
   (d) In a 1994 memorandum, the State Board of Equalization's legal
division further concluded that the areas normally considered
eligible for exemptions are the office areas used to counsel veterans
and the area used to store veterans' records, but that the meeting
hall and bar found in most of the facilities are not considered used
for charitable purposes.  
   (e) Tax-exempt status is intended to provide economic incentive
and support to veterans' organizations to provide for the social
welfare of the community of current and former military personnel.
 
   (f) The State Board of Equalization's constriction of the tax
exemption has resulted in an onerous tax burden on California veteran
service organizations posts or halls, hinders the posts' ability to
provide facilities for veterans, and threatens the economic viability
of many local organizations.  
   (g) The charitable activities of a veteran service organizations
post or hall are much more than the counseling of veterans. The
requirements listed for qualification for the federal tax exemption
clearly dictate a need for more than just an office.  
   (h) Programs to perpetuate the memory of deceased veterans and
members of the Armed Forces and to comfort their survivors require
the use of facilities for funerals and receptions.  
   (i) Programs for religious, charitable, scientific, literary, or
educational purposes require space for more than 50 attendees. 

   (j) Activities of a patriotic nature need facilities to
accommodate hundreds of people.  
   (k) Social and recreational activities for members require
precisely those areas considered "not used for charitable purposes"
by the State Board of Equalization.  
   (l) The State Board of Equalization's interpretation of the
Revenue and Taxation Code reflects a lack of understanding of the
purpose and programs of the veteran service organizations posts or
halls and is detrimental to the good works performed in support of
our veteran community. 
   SECTION 1.   SEC. 2.   Section 215.1 of
the Revenue and Taxation Code is amended to read:
   215.1.  (a) All buildings, and so much of the real property on
which the buildings are situated as may be required for the
convenient use and occupation of the buildings, used exclusively for
charitable purposes, owned by a veterans' organization that has been
chartered by the Congress of the United States, organized and
operated for charitable purposes, when the same are used solely and
exclusively for the purpose of the organization, if not conducted for
profit and no part of the net earnings of which inures to the
benefit of any private individual or member thereof, shall be exempt
from taxation.
   (b) The exemption provided for in this section shall apply to the
property of all organizations meeting the requirements of this
section and subdivision (b) of Section 4 of Article XIII of the
California Constitution and paragraphs (1) to (7), inclusive, of
subdivision (a) of Section 214.
   (c) An organization that files a claim for the exemption provided
for in this section shall file with the assessor a valid
organizational clearance certificate issued pursuant to Section
254.6.
   (d) (1) This exemption shall be known as the "veterans'
organization exemption."
   (2) Property owned by an organization that satisfies the
requirements of Section 215 or this section shall not be denied the
veterans' organization exemption because the property is occasionally
made available for private rentals as a service to the community,
provided that the amount of rental fee charged is limited to that
amount necessary to reimburse the veterans' organization for its
costs in making the rental available, and any proceeds from the
rentals are used exclusively for the charitable purposes of the
organization.
   SEC. 2.   SEC. 3.  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.
   SEC. 3.   SEC. 4.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.