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HomeMy WebLinkAboutMINUTES - 02231988 - 2.8 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on February 23 , 1988 , by the following vote: AYES: Supervisors McPeak, Torlakson, Schroder NOES: None ABSENT: Supervisors Powers, Fanden ABSTAIN: None ---------------------------------------------------------=--------- ------------------------------------------------------------------ SUBJECT: Property Tax Exemption for Nursing Homes The Board received the attached report dated February 10, 1988 from Victor J. Westman, County Counsel, relative to property tax exemption for nursing homes. IT IS BY THE BOARD ORDERED that the report is REFERRED to the Internal Operations Committee (Supervisors McPeak and Torlakson) for review. CC: Internal Operations Committee County Counsel County Administrator 1 hereby certify that this is a true and coo.e^` an action taken and entered on, Board of Supervisors on the rist;L ATTESTED: PHIL BATCHELOR,, C`- si of Zh-'� i1'7r of Supekvisors and County Adminisi ator By i�(.�-ri.tr- (O Qlt/ielo�a'� Deputy °'RECEIVED COUNTY COUNSEL'S OFFICE CONTRA COSTA COUNTY MARTINEZ, CALIFORNIA Dote: February 10, 1988 PHIL BATCHELOR CLERK BOARD OF SUPERVISORS - By CONTRA OSTA CO. ........... D I TO: Board of Supervisors From: Victor J. Westman, County Counsel By: Dennis C. Graves, Deputy County C Re: Property tax exemption for nursing hom s Summary: State legislation, approved by a two-thirds vote of each House, can exempt personal property but a Constitutional amendment would be required to exempt real property of nursing homes . This responds to the Board' s Order of October 27 , 1987, by which we were asked to address the issue of "State authorization" for property tax incentives (i.e. , exemptions) for nursing homes. The materials accompanying the Order indicate that the primary concern is to grant property tax exemptions to nursing homes that do not limit Medi-Cal patients. Two issues should be addressed separately: 1) exemption of personal property and 2 ) exemption of real property. 1. Personal property exemption. Personal property is defined as all property except real property. (R&TC § 106. ) Personal property can be exempted by State legislation adopted by a two-thirds vote of each house of the Legislature. (Cal. Const. Art. XIII, § 2. ) We .suggest that the following proposed legislation would accomplish the exemption of nursing home personal property: R&TC § 236: All personal property -of nursing homes shall be exempt from property taxation. For purposes of this Section, "nursing home" shall mean a facility: a) In ,which at least percent of the beds are occupied by patients for whom payment is made wholly or partially by the State of California pursuant to the Medi-Cal program, and b) which is licensed by the State as a long-term health care facility under [specify law] or as a skilled nursing facility under or as an intermediate care facility under or as a under Board of Supervisors February 10, 1988 2. Real property exemption. Real property is defined as all land and improvements, including structures and items affixed thereto. (R&TC §§ 104, 105. ) Real property can be exempted only by an amendment to the California Constitution. (Cal. Const. Art. XIII, § 1; Lundberg v. Alameda County [1956] 46 Cal.2d 644, 648. ) Accordingly, the exemption of real property of nursing homes could be accomplished only by a Constitutional change adopted by a vote of the people, after being placed on the ballot either by initiative or referendum. The following is language, amending Article XIII, Section 3, which we suggest to accomplish the intended exemption. Article XIII, § 3. The following are exempt from property taxation: o (s) Real property used exclusively by a nursing home. In accord with this Constitutional amendment, legislation would also be needed to define a nursing home as specified above for the personal property exemption. cc: County Administrator County Assessor Health Services Director -2-