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HomeGovernment CodeCh. 1Art. 2§ 91539 Tax Exemptions For Authorities

§ 91539 Tax Exemptions For Authorities

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 91539 Tax Exemptions For Authorities

Key Takeaways

  • •Money made by certain groups (called 'authorities') and their projects is free from income taxes.
  • •If these groups issue bonds (like borrowing money), those bonds and the interest earned are tax-free.
  • •Property owned by these groups doesn’t have to pay property taxes or other fees tied to the property.
  • •If a company works with these groups on a project, normal sales taxes don’t apply when they lease or transfer property for the project.

Example

A city builds a new sports stadium using a special group called an 'authority' to manage it.

The money the stadium makes from tickets and snacks isn’t taxed. The land and building don’t pay property taxes, and if a company helps build it, they don’t pay sales tax on the materials they transfer to the authority.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 91539 Tax Exemptions For Authorities

Notwithstanding any other provision of law: (a) Authorities and their revenues, amounts for administration or costs of issuance expenses, and any other income shall be exempt from all taxes on, or measured by, income. (b) Bonds issued by authorities shall be exempt from all property taxation and the interest on such bonds shall be exempt from all taxes on income. (c) All property owned by authorities shall be exempt from property taxes, assessments, and other public charges secured by liens. (d) All interests of companies in the property of projects shall, for purposes of property taxation, be subject to the provisions of Division 1 (commencing with Section 101) of the Revenue and Taxation Code, and such interests as constitute the tax base for property taxation shall be subject to such assessments and charges on the same basis as other property. (e) “Sale” and “purchase,” for the purposes of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code, do not include any lease or transfer of title of tangible or intangible personal property constituting any project or facility to an authority by a company, nor any lease or transfer of title of tangible or intangible personal property constituting any project or facility by such authority to any company, when the transfer or lease is made pursuant to this title. (Amended by Stats. 2009, Ch. 648, Sec. 12. (AB 1009) Effective November 5, 2009.)

Last verified: January 22, 2026

Key Terms

taxationauthoritieslienleasepropertyfacilityauthorityeffective november

Related Statutes

  • § 91540 Authority Property Exemption Limits
  • § 19816.20 State Safety Employee Classification
  • § 43092 Annual City Tax Revenue
  • § 51334 City Tax Assessment Transfer
  • § 62110 Covenant Subordination Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 91539.
View Official Source