SB 2416

Present law generally requires all mineral interests and all other interests of whatever character , not defined as products of the soil, in real property, including the interest that the lessee may have in and to the improvements erected upon land where the fee, reversion, or remainder on it is exempt to the owner, and which interest or interests is or are owned separately from the general freehold, are assessed to the owner, separately from the other interests in such real estate, which other interests are assessed to the owner, all of whic h is assessed as real property . However, there is an exception if the lessee's or sublessee's interest in any such real property, including any improvements erected upon the land, is the subject of a lawful agreement between a lessee and this state or a local government, or instrumentality of such government , for payments in lieu of taxes, entered into or amended on or after April 30, 2019 . This bill adds an additional exception to the requirement that mineral and other interests are assessed to the owner of real property if t he lessee is the lessee of a lease entered into or amended on or after April 30, 2026, and such lessee is an entity that is a corporate instrumentality of a housing authority or an entity in which such corporate instrumentality holds an interest and the i mprovements are used in furtherance of the housing authority's public purpose of promoting affordable housing. In the case of either exception, this bill provides that the property is assessed solely to the governmental entity, including a housing authority, and subject to all available exemptions.