Sec. 11. Possessory interest tax

675 words·~3 min read·/bill/119/hr/5935/ih/section-11

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

No Possessory Interest shall be subject to the Riverside County Ad Valorem Property Tax for any taxable period when the Tribe imposes a Tribal Tax on such Possessory Interest. The provisions of this section shall preempt any and all State or local laws, decisions, rules, regulations, or actions having the effect of law insofar as inconsistent with the provisions of this section. The preemption in this section shall not apply to any fee, tax, assessment, levy, or other charge imposed by any Other Public Agency.

The Tribe shall have the authority to impose, assess, collect, and distribute a Tribal Tax on Possessory Interests in lieu of the Riverside County Ad Valorem Property Tax. Such tax shall be governed exclusively by this section and any law adopted by the Tribe to implement the Tribal Tax. The Tribe may delegate this authority to the Riverside County via an intergovernmental agreement as provided in paragraph (6). The Tribal Tax shall not for any taxable period be imposed with respect to any Possessory Interest at a rate or on an assessed value lower than the rate and any assessed value that, but for the preemption in this section, would have formed the basis for imposition and assessment of the Riverside County Ad Valorem Property Tax with respect to such Possessory Interest for such taxable period.

Leaseholds, easements, rights of way, and other property interests or enterprises held or conducted by governments or nonprofit organizations that are exempt from property taxation under California law shall be similarly exempt from any Tribal Tax. Subject to paragraph (8), the Tribe shall distribute Tribal Tax proceeds to Other Public Agencies in the amounts that, but for the preemption in this section, such Other Public Agencies would have been entitled to receive from the levy of the Riverside County Property Tax on the Possessory Interests.

These distributions will take priority over any other use of the Tribal tax proceeds and will be made in accordance with the Tax Apportionment Schedule. The requirements of this section, including the distributions to Other Public Agencies pursuant to paragraph (4), shall be enforceable by Other Public Agencies in Federal district court, except to the degree that enforcement is available in an intergovernmental agreement with the County pursuant to paragraph (6). The Tribe waives its sovereign immunity for the specific and limited purpose of enforcing those requirements.

The Tribe may delegate its authority to assess, collect, and distribute the Tribal Tax to Riverside County through an intergovernmental agreement. Such agreement shall provide that Riverside County shall distribute to Other Public Agencies the amounts that, but for the preemption in this section, such Other Public Agencies would have been entitled to receive from the levy of the Riverside County Property Tax on the Possessory Interests and in accordance with the Tax Apportionment Schedule.

Such agreement will also provide that the Other Public Agencies are third-party beneficiaries of the Agreement and entitled to enforce its terms. Tribal Tax proceeds shall not be used for per capita distribution to Tribal Members and shall be used solely for the following purposes— offsetting the operating cost of the Agua Caliente Water Authority; offsetting the cost of operation, maintenance, repair, and replacement of the Tribe’s water project infrastructure; funding the Tribe’s government, including but not limited to offsetting costs associated with administering the Tribal Tax; and providing funds to Other Public Agencies, including assurance that the Other Public Agencies will receive proceeds from the Tribal Tax at least equivalent to the distributions that they would have received from the levy of the Riverside County Property Tax on the Possessory Interests but for the preemption in this section.

Unless the Tribe determines otherwise, in no event will the Tribe be required to distribute Tribal Tax proceeds such that Other Public Agencies receive a greater amount of combined State or Tribal Tax revenue, than the Other Public Agencies would otherwise receive pursuant to California law but for the preemption in this section. This section shall take effect on the first day of January following the Enforceability Date.