CaliforniaProperty taxation: welfare exemption.
What it does
Except as provided, the California Constitution requires that all property be taxed in proportion to its full value and assessed at the same percentage of fair market value. The tax imposed pursuant to these provisions is commonly referred to as an ad valorem property tax. Existing property tax law, in accordance with the California Constitution, provides for a "welfare exemption" for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if any of certain qualifying criteria are met, including that the owner of the property receives low-income housing tax credits pursuant to specified provisions of the Internal Revenue Code.
More detail
Under existing property tax law, property that meets these requirements that is used exclusively for rental housing and related facilities is entitled to a partial exemption, equal to that percentage of the value of the property that is equal to the percentage that the number of units serving lower income households represents of the total number of residential units, in any year that any of certain criteria apply.
Existing property tax law, for the 2018–19 fiscal year through the 2027–28 fiscal year, in the case of an owner of property who is eligible for the federal low-income housing tax credit, requires that a unit continue to be treated as occupied by a lower income household if the occupants were lower income households on the lien date in the fiscal year in which occupancy of the unit commenced and the unit continues to be rent restricted, notwithstanding an increase in the income of the occupants of the unit to 140% of area median income.
This bill would extend the above-described provision through the 2028–29 fiscal year.
Existing property tax law establishes procedures for claiming the welfare exemption, including requiring the annual filing of a claim for the exemption with the county assessor, as provided.
This bill would authorize the county assessor to accept electronic signatures for materials necessary to claim, maintain, or otherwise receive the welfare exemption. The bill would require the county board of supervisors to, if necessary and in collaboration with the county assessor, adopt any ordinances or resolutions to implement the electronic portal and submission authorization. The bill would require, as provided, every county to release all forms related to the annual recertification of tenant income necessary to receive the welfare exemption by November 15 of each calendar year prior to the due date for the forms.
By imposing additional duties on counties, the bill would impose a state-mandated local program.
This bill would incorporate additional changes to Section 214 of the Revenue and Taxation Code proposed by Assembly Bill 1294 to be operative only if this bill and Assembly Bill 1294 are enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27Chaptered by Secretary of State - Chapter 577, Statutes of 2026.Latest
- Sep 27Approved by the Governor Gavin Newsom.Became Law
- Sep 3Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 26Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6640.).Major
- Vote recorded AB 2089 Ward Concurrence in Senate Amendments. Result: pass.Lower
- Vote recorded 3rd Reading AB2089 Ward By Grayson. Result: pass.Upper
- Aug 26In Assembly. Concurrence in Senate amendments pending.
- Aug 26Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).Passed Senate
- Aug 24Read second time. Ordered to third reading.Minor
- Aug 21Read third time and amended. Ordered to second reading.Major
- Aug 4Read second time. Ordered to third reading.Minor
- Aug 3From committee: Be ordered to second reading pursuant to Senate Rule 28.8.Minor
- Jun 24From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jun 16From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on REV. & TAX.Major
- May 27Referred to Com. on REV. & TAX.Minor
- May 18In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 2089 Ward Assembly Third Reading. Result: pass.Lower
- May 18Read third time. Passed. Ordered to the Senate. (Ayes 72. Noes 0. Page 5135.)Passed Assembly
- May 14Read second time. Ordered to third reading.Minor
- May 13From committee: Do pass. (Ayes 15. Noes 0.) (May 13).Minor
- Vote recorded Do pass. Result: pass.Lower
- Apr 23Re-referred to Com. on APPR.Minor
- Apr 22Read second time and amended.Major
- Apr 21From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 20).Major
- Apr 20In committee: Set, first hearing. Referred to REV. & TAX. suspense file.Minor
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 15From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 12. Noes 0.) (April 15). Re-referred to Com. on REV. & TAX.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Revenue and Taxation]. Result: pass.Lower
- Apr 7Re-referred to Com. on H. & C.D.Minor
- Apr 6From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.Major
- Mar 12Re-referred to Coms. on H. & C.D. and REV. & TAX. pursuant to Assembly Rule 96.Minor
- Mar 9Referred to Coms. on REV. & TAX. and H. & C.D.Minor
- Feb 19From printer. May be heard in committee March 21.
- Feb 18Read first time. To print.Introduced