CaliforniaProperty tax: welfare exemption.
What it does
The California Constitution authorizes the Legislature to exempt from taxation, in whole or in part, property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity. Pursuant to that authority, existing law provides for a welfare exemption under which property used exclusively for an exempt purpose and owned and operated by specified entities, including foundations, limited liability companies, or corporations meeting certain statutory requirements is exempt from taxation. Existing law also provides that property used exclusively for the preservation of specified natural resources or open-space lands owned or operated by a specified entity meeting specified criteria is deemed to be included within the welfare exemption.
More detail
Existing law makes that provision operative up to, and including, the lien date in 2027 and repeals that provision on January 1, 2028.
This bill would extend the above-described operative date up to, and including, the lien date in 2032 and would extend the corresponding repeal date to January 1, 2033. By imposing additional duties upon local tax officials, this bill would impose a state-mandated local program.
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 bill and would set forth specified information relating to those requirements.
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 29Chaptered by Secretary of State - Chapter 814, Statutes of 2026.Latest
- Sep 29Approved by the Governor Gavin Newsom.Became Law
- Aug 27Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 20In Assembly. Ordered to Engrossing and Enrolling.Minor
- Vote recorded Special Consent AB1668 Pellerin By Allen. Result: pass.Upper
- Aug 20Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5589.).Passed Senate
- Aug 18Ordered to special consent calendar.
- 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
- Jun 3Referred to Com. on REV. & TAX.Minor
- May 27In Senate. Read first time. To Com. on RLS. for assignment.Minor
- May 26Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 5295.)Passed Assembly
- Vote recorded AB 1668 Pellerin Assembly Third Reading. Result: pass.Lower
- May 22Read third time and amended. Ordered to third reading. (Page 5271.)Major
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 15. Noes 0.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 14Joint Rule 62(a), file notice suspended. (Page 5030.)
- May 13In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 28From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 27). Re-referred to Com. on APPR.Minor
- Apr 27
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 21Re-referred to Com. on REV. & TAX.Minor
- Apr 20From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.Major
- Mar 16In committee: Set, first hearing. Referred to suspense file.Minor
- Feb 17Referred to Com. on REV. & TAX.Minor
- Jan 30From printer. May be heard in committee March 1.
- Jan 29Read first time. To print.Introduced