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SB-294 Property taxation: welfare exemption: low income housing.(2019-2020)

Senate:
1st
Cmt
2nd
3rd
Pass
Pass
Veto
Assembly:
1st
Cmt
2nd
3rd
Pass
Bill Status
SB-294
Hill (S)
-
-
Property taxation: welfare exemption: low income housing.
03/17/19
An act to amend Section 214 of, and to add Section 214.20 to, the Revenue and Taxation Code, relating to taxation.
Senate
09/11/19
07/01/19

Type of Measure
Active Bill - In Floor Process
Majority Vote Required
Non-Appropriation
Fiscal Committee
State-Mandated Local Program
Non-Urgency
Non-Tax levy
Last 5 History Actions
Date Action
10/12/19 In Senate. Consideration of Governor's veto pending.
10/12/19 Vetoed by the Governor.
09/17/19 Enrolled and presented to the Governor at 2 p.m.
09/06/19 Assembly amendments concurred in. (Ayes 39. Noes 0. Page 2609.) Ordered to engrossing and enrolling.
09/06/19 Ordered to special consent calendar.
Governor's Veto Message
To the Members of the California State Senate:

I am returning Senate Bill 294 without my signature.

This bill would revise the current property tax welfare exemption for nonprofits that own and operate non-publicly financed affordable housing developments by increasing the current exemption for nonprofits from $20 million to $100 million and reducing the current low-income tenancy threshold from 90 percent to 50 percent for ten years. The bill would also allow outstanding unpaid property tax bills to be reduced or potentially forgiven on qualified properties.

While well intended, and specific to certain nonprofit entities that provide affordable housing, this bill makes changes to the property tax welfare exemption that could have significant long-term General Fund costs and reduced local revenue. In addition to tax exemptions under current law, properties that are in need of assistance to maintain long-term affordability have access to a range of state and local preservation financing programs.

Sustaining affordable housing in fiscally responsible manner for the long-term is a goal I share with the Legislature. Although this bill is not the solution, I am committed to working with the Legislature on bolstering existing programs and tailoring them to produce and preserve the State's much needed affordable housing stock.

Sincerely,



Gavin Newsom