CaliforniaReal property tax: welfare exemption: community land trusts.
What it does
Existing property tax law, pursuant to constitutional authorization, 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 certain qualifying criteria are met.
More detail
Existing law also provides, until January 1, 2027, that property is within the welfare exemption if that property is owned by a community land trust, as defined, otherwise qualifying for the welfare exemption, and specified conditions are met, including that the property is being or will be developed or rehabilitated as housing, as specified. Existing law, however, makes community land trusts liable for property tax for the years for which the property was exempt from taxation if the property was not developed or rehabilitated, or if the development or rehabilitation is not in the course of construction, by January 1, 2027, for property acquired before January 1, 2022, or within 5 years of the lien date following acquisition of the property, for property acquired on and after January 1, 2022.
This bill would extend the operation of these provisions until January 1, 2032. The bill would make various conforming changes, including with respect to the lien dates for which the exemption applies.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would state that it is the intent of the Legislature to apply those requirements to the above-described exemption and would set forth specified information relating to those requirements. In that regard, the bill would require the assessor to provide the State Board of Equalization with certain information and would require the assessor to retain that information, as specified.
By imposing additional duties on local tax officials, the bill would impose a state-mandated local program.
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.
Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
This bill would take effect immediately as a tax levy.
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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 30Chaptered by Secretary of State - Chapter 868, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Sep 4Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 27Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0. Page 6736.).Major
- Vote recorded AB 672 Caloza Concurrence in Senate Amendments. Result: pass.Lower
- Vote recorded With recommendation: That Senate amendments be concurred in. Result: pass.Lower
- Aug 27From committee: That the Senate amendments be concurred in. (Ayes 7. Noes 0.) (August 27).Minor
- Aug 26Joint Rule 62(a), file notice suspended. (Page 6563.)
- Aug 25Re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 77.2.Minor
- Vote recorded 3rd Reading AB672 Caloza By Grayson. Result: pass.Upper
- Aug 25In Assembly. Concurrence in Senate amendments pending.
- Aug 25Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0.).Passed Senate
- Aug 24Read second time. Ordered to third reading.Minor
- Aug 20Read third time and amended. Ordered to second reading.Major
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 13From committee: Do pass. (Ayes 7. Noes 0.) (August 13).Minor
- Jun 22In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 10From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 10). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- May 13Re-referred to Com. on REV. & TAX.Minor
- Apr 30Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(c).Minor
- Apr 29Read second time. Ordered to third reading.Minor
- Apr 28Read second time and amended. Ordered returned to second reading.Major
- Apr 28Ordered to second reading.Minor
- Apr 28From inactive file.
- 2025
- Aug 25Ordered to inactive file at the request of Senator Durazo.
- Aug 20Read second time. Ordered to third reading.Minor
- Aug 19From committee: Be ordered to second reading pursuant to Senate Rule 28.8.Minor
- Jul 16From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (July 15). Re-referred to Com. on APPR.Minor
- Jul 15
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jun 25From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 1.) (June 25). Re-referred to Com. on JUD.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Judiciary]. Result: pass.Upper
- Jun 18From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R.Major
- Jun 18Referred to Coms. on L., P.E. & R. and JUD.Minor
- May 15In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 672 Caloza Assembly Third Reading. Result: pass.Lower
- May 15Read third time. Passed. Ordered to the Senate. (Ayes 62. Noes 4. Page 1562.)Passed Assembly
- May 8Read second time. Ordered to third reading.Minor
- May 7From committee: Do pass. (Ayes 11. Noes 0.) (May 7).Minor
- Vote recorded Do pass. Result: pass.Lower
- Apr 8From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 8). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Mar 19From committee: Do pass and re-refer to Com. on JUD. (Ayes 6. Noes 0.) (March 19). Re-referred to Com. on JUD.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Judiciary]. Result: pass.Lower
- Mar 3Referred to Coms. on P. E. & R. and JUD.Minor
- Feb 15From printer. May be heard in committee March 17.
- Feb 14Read first time. To print.Introduced