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SB-257 Property taxation: welfare exemption: museums.(2021-2022)

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Date Published: 01/26/2021 09:00 PM
SB257:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 257

Introduced by Senator Skinner
(Coauthors: Assembly Members Bonta and Wicks)

January 26, 2021

An act to amend Section 214.14 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 257, as introduced, Skinner. Property taxation: welfare exemption: museums.
Pursuant to constitutional authorization, existing property tax law provides a welfare exemption, pursuant to which property used exclusively for religious, hospital, scientific, or charitable purposes owned and operated by specified types of entities is exempt from taxation if it meets certain criteria, including that the property is used for the actual operation of the exempt activity, and does not exceed an amount of property reasonably necessary to the accomplishment of the exempt purpose. Under existing property tax law, property used exclusively for the charitable purposes of museums owned and operated by a religious, hospital, scientific, or charitable fund, foundation, limited liability company, or corporation that meets these criteria is deemed to be within the welfare exemption. Existing property tax law requires a person claiming the welfare exemption to file that claim with the assessor and obtain an organizational clearance certificate from the State Board of Equalization, as provided.
This bill would define the term “museum” for these purposes and prohibit the assessor from denying a claim for the welfare exemption for property that is used exclusively for the charitable purposes of museums, as described above, on the basis that the property is occasionally made available for private rentals as a service to the community if specified conditions are met. By adding to the duties of assessors in administering the welfare exemption, 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law requires the state 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 those provisions, 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   Local Program: YES  

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


SECTION 1.

 Section 214.14 of the Revenue and Taxation Code is amended to read:

214.14.
 (a) Property For purposes of this section, “museum” means a public or private nonprofit entity or institution organized on a permanent basis for essentially educational or aesthetic purposes and that utilizes a professional staff, owns or utilizes tangible objects, cares for tangible objects, and exhibits those tangible objects to the public on a regular basis. “Museum” includes, but is not limited to, museums that have both tangible and digital collections, aquariums, arboretums, botanical gardens, art museums, children’s museums, general museums, historic houses and sites, history museums, nature centers, natural history and anthropology museums, planetariums, science and technology centers, specialized museums, and zoological parks.
(b) Property used exclusively for the charitable purposes of museums and owned and operated by a religious, hospital, scientific, or charitable fund, foundation, limited liability company, or corporation which meets all the requirements of subdivision (a) of Section 214 shall be deemed to be within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution and Section 214.

(b)

(c) For purposes of this section:
(1) Property used exclusively for the charitable purposes of museums shall include property used for activities and facilities related to the primary charitable purposes of museums and reasonably necessary and incidental to those purposes.
(2) Property used exclusively for the charitable purposes of museums shall not be required to be indispensable to the primary charitable purposes of museums.
(3) Property Except as otherwise provided in subdivision (d), property used exclusively for the charitable purposes of museums shall not include property used for activities and facilities not related to the primary charitable purposes of museums and not reasonably necessary or incidental to those purposes.
(4) Property used exclusively for the charitable purposes of museums shall include property owned by a nonprofit association or organization performing auxiliary services to any city or county museum in the state and used for the storage of items donated for an annual rummage sale, the proceeds of which, after taking into account the expenses of the nonprofit association or organization, are used to provide support to those museums. For purposes of this subdivision, “storage of items donated for an annual rummage sale” shall not be considered a “fundraising activity,” as that term is used in paragraph (3) of subdivision (a) of Section 214.
(d) The assessor shall not deny a claim for the welfare exemption for property used exclusively for the charitable purposes of museums on the basis that the property is occasionally made available for private rentals as a service to the community if all of the following conditions are met:
(1) The property meets all of the requirements specified in subdivisions (b) and (c).
(2) The amount of rental fee charged is limited to the amount necessary to reimburse the religious, hospital, scientific, or charitable fund, foundation, limited liability company, or corporation for its costs in making the rental available, including, but not limited to, direct, personnel, and overhead costs.
(3) Any proceeds from the rental are used exclusively for the charitable purposes of the museum.

(c)

(e) The amendments made by the act adding this subdivision shall apply with respect to lien dates occurring on and after January 1, 2005.

SEC. 2.

 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.

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. 4.

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