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SB-252 Income taxation: exclusion: mobilehome park sales.(2019-2020)

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Date Published: 05/07/2019 09:00 PM
SB252:v96#DOCUMENT

Amended  IN  Senate  May 07, 2019
Amended  IN  Senate  April 22, 2019
Amended  IN  Senate  March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 252

Introduced by Senator Leyva

February 11, 2019

An act to add and repeal Sections 18041.6 and 24955.1 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 252, as amended, Leyva. Income taxation: exclusion: mobilehome park sales.
The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal law, provide various exclusions from gross income in computing tax liability.
This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would exclude from gross income under both of these laws the gain from the sale of a qualified mobilehome park held by a taxpayer for 30 years to a qualified purchaser, as those terms are defined. The bill would limit this exclusion to the sale of a qualified mobilehome park during the taxable year for which the taxpayer seeks the exclusion as confirmed by the Department of Housing and Community Development, as provided. exclusion. The bill would require applicants for approval as a qualified purchaser to apply with the department, as provided. Department of Housing and Community Development, and would require the department to certify under penalty of perjury, among other things, that the sale of a qualified mobilehome park by a taxpayer to a qualified purchaser meets specified requirements. The bill would require the Legislative Analyst to report to the Legislature by January 1, 2025, on the effects of the exclusion on the sales of qualified mobilehome parks in this state. The bill would repeal these provisions as of December 1, 2025. By expanding the scope of the crime of perjury, 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 no reimbursement is required by this act for a specified reason.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares the following:
(a) The State of California is experiencing a housing crisis due to the lack of affordable housing in the state.
(b) Mobilehomes and manufactured homes may help alleviate the housing crisis since they can be produced quickly and are affordable for most residents.
(c) Providing incentives to owners of qualified mobilehome parks to sell those parks to qualified purchasers with the intent to maintain and preserve the property as a mobilehome park and that will continue to operate those parks at affordable levels will allow residents to secure affordable housing.

SEC. 2.

 Section 18041.6 is added to the Revenue and Taxation Code, to read:

18041.6.
 (a) (1) Subject to paragraph (2), for taxable years beginning on or after January 1, 2020, and before January 1, 2025, gain from the sale of a qualified mobilehome park held by a taxpayer for a period of at least 30 years to a qualified purchaser shall not be recognized.
(2) (A)The exclusion provided by this section shall apply only to a sale of a qualified mobilehome park that occurs during the taxable year for which the taxpayer seeks the exclusion and is confirmed certified by the Department of Housing and Community Development in accordance with this section.

(B)The exclusion provided by this section shall only be allowed to a taxpayer that provides proof of an independent appraisal of the qualified mobilehome park to the Department of Housing and Community Development.

(3) A qualified purchaser shall comply with both of the following requirements:
(A) The purchaser agrees to own and operate a qualified mobilehome park and records a deed restriction to maintain affordable rents for at least 30 years.
(B) The purchaser applies to and is approved by the Department of Housing and Community Development pursuant to subdivision (c).
(b) For purposes of this section:
(1) “Qualified mobilehome park” means a mobilehome park, as that term is defined in Section 18214 of the Health and Safety Code that is in existence as of January 1, 2020.
(2) “Qualified purchaser” means any of the following:
(A) A local public entity, as defined in Section 50079 of the Health and Safety Code, including a tribally designated housing entity.
(B) A qualified nonprofit housing sponsor, as defined in subdivision (k) of Section 50781 of the Health and Safety Code.
(C) A resident organization, as defined in subdivision (l) of Section 50781 of the Health and Safety Code.
(D) A tribally designated housing entity, as defined in Section 50104.6.5 of the Health and Safety Code.
(c) The Department of Housing and Community Development shall do all of the following:
(1) Develop and administer a process pursuant to which an organization seeking to become a qualified purchaser may submit an application to the department for approval.

(2)Confirm the information provided in an application for approval as a qualified purchaser.

(3)Designate

(2) Certify as a qualified purchaser any applicant that the department determines meets the criteria specified in this section.

(4)Confirm the amount of exclusion to a taxpayer based on the independent appraisal and the information provided in the application for the qualified purchaser to which the taxpayer sold the qualified mobilehome park.

(3) Certify the sale of a qualified mobilehome park by a taxpayer to a qualified purchaser.
(4) Certify the qualified purchaser has recorded a deed restriction pursuant to subparagraph (A) of paragraph (3) of subdivision (a).
(5) Provide the taxpayer with a copy of the certifications in paragraphs (2) to (4), inclusive.
(6) Provide the Franchise Tax Board, upon request of the Franchise Tax Board, with a copy of the certifications in paragraphs (2) to (4), inclusive, and all of the following information:
(A) The taxpayer’s name and social security number or taxpayer identification number.
(B) The address of the qualified mobilehome park.
(C) The qualified purchaser’s name and social security number or taxpayer identification number.
(d) The Department of Housing and Community Development may adopt any regulations necessary or appropriate to implement this section. Regulations promulgated adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(e) The taxpayer shall provide the certifications issued pursuant to paragraph (5) of subdivision (c) to the Franchise Tax Board upon request.

(e)

(f) (1) No later than January 1, 2025, the Legislative Analyst shall submit a report to the Legislature on the effects of the exclusion provided by this section and Section 24955.1 on the sales of qualified mobilehome parks in this state.
(2) The report required to be submitted by this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

(f)

(g) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.

SEC. 3.

 Section 24955.1 is added to the Revenue and Taxation Code, to read:

24955.1.
 (a) (1) Subject to paragraph (2), for taxable years beginning on or after January 1, 2020, and before January 1, 2025, gain from the sale of a qualified mobilehome park held by a taxpayer for a period of at least 30 years to a qualified purchaser shall not be recognized.
(2) (A)The exclusion provided by this section shall apply only to a sale of a qualified mobilehome park that occurs during the taxable year for which the taxpayer seeks the exclusion and is confirmed certified by the Department of Housing and Community Development in accordance with this section.

(B)The exclusion provided by this section shall only be allowed to a taxpayer that provides proof of an independent appraisal of the qualified mobilehome park to the Department of Housing and Community Development.

(3) A qualified purchaser shall comply with both of the following requirements:
(A) The purchaser agrees to own and operate a qualified mobilehome park and records a deed restriction to maintain affordable rents for at least 30 years.
(B) The purchaser applies to and is approved by the Department of Housing and Community Development pursuant to subdivision (c).
(b) For purposes of this section:
(1) “Qualified mobilehome park” means a mobilehome park, as that term is defined in Section 18214 of the Health and Safety Code that is in existence as of January 1, 2020.
(2) “Qualified purchaser” means any of the following:
(A) A local public entity, as defined in Section 50079 of the Health and Safety Code, including a tribally designated housing entity.
(B) A qualified nonprofit housing sponsor, as defined in subdivision (k) of Section 50781 of the Health and Safety Code.
(C) A resident organization, as defined in subdivision (l) of Section 50781 of the Health and Safety Code.
(D) A tribally designated housing entity, as defined in Section 50104.6.5 of the Health and Safety Code.
(c) The Department of Housing and Community Development shall do all of the following:
(1) Develop and administer a process pursuant to which an organization seeking to become a qualified purchaser may submit an application to the department for approval.

(2)Confirm the information provided in an application for approval as a qualified purchaser.

(3)Designate

(2) Certify as a qualified purchaser any applicant that the department determines meets the criteria specified in this section.

(4)Confirm the amount of exclusion to a taxpayer based on the independent appraisal and the information provided in the application for the qualified purchaser to which the taxpayer sold the qualified mobilehome park.

(3) Certify the sale of a qualified mobilehome park by a taxpayer to a qualified purchaser.
(4) Certify the qualified purchaser has recorded a deed restriction pursuant to subparagraph (A) of paragraph (3) of subdivision (a).
(5) Provide the taxpayer with a copy of the certifications in paragraphs (2) to (4), inclusive.
(6) Provide the Franchise Tax Board, upon request of the Franchise Tax Board, with a copy of the certifications in paragraphs (2) to (4), inclusive, and all of the following information:
(A) The taxpayer’s name and social security number or taxpayer identification number.
(B) The address of the qualified mobilehome park.
(C) The qualified purchaser’s name and social security number or taxpayer identification number.
(d) The Department of Housing and Community Development may adopt any regulations necessary or appropriate to implement this section. Regulations promulgated adopted pursuant to this section shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(e) The taxpayer shall provide the certifications issued pursuant to paragraph (5) of subdivision (c) to the Franchise Tax Board upon request.

(e)

(f) (1) No later than January 1, 2025, the Legislative Analyst shall submit a report to the Legislature on the effects of the exclusion provided by this section and Section 18041.6 on the sales of qualified mobilehome parks in this state.
(2) The report required to be submitted by this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

(f)

(g) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.

SEC. 4.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 4.SEC. 5.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.