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<ns0:Description>
<ns0:Id>20250AB__208998AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-18</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-04-06</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>2089</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Ward</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ward</ns0:Name>
</ns0:Legislator>
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<ns0:Title> An act to amend Section 4985.05 of, and to add Sections 254.4, 259.16, and 259.17 to, the Revenue and Taxation Code, relating to taxation. </ns0:Title>
<ns0:RelatingClause>taxation</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Property taxation: welfare exemption: filing of claims: delinquency penalties.</ns0:Subject>
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<ns0:DigestText>
<html:p>
(1)
<html:span class="EnSpace"/>
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 certain qualifying criteria are met. 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 establishes procedures for claiming the welfare exemption, including requiring the annual filing of a claim for the exemption with the county assessor, as provided.
</html:p>
<html:p>This bill would require 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 requirement.</html:p>
<html:p>This bill would also require the county assessor to provide on their internet website certain documentation requirements for the above-described partial exemption, as described, and would require that information to be updated within 7 days of any changes.</html:p>
<html:p>This bill would require 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.</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Existing property tax law imposes various penalties and costs for delinquent payment of real property taxes. Existing law provides that a property owner is not liable for interest or penalties, and prohibits the tax collector from taking or continuing any collection action, with respect to ad valorem property taxes levied upon a property if, annually while receiving the benefit, the facilities are in the course of construction, as defined, and the property owner supplies evidence to the tax collector that the property owner has submitted to the county assessor an application for an exemption pursuant to the above-described partial welfare exemption, except as provided, and that the property received a specified reservation of tax credits or award of funds. Existing law makes this benefit applicable to property tax installments that are
due and payable from December 10, 2025, to April 10, 2031.
</html:p>
<html:p>This bill would extend the benefit to those properties that provide evidence that the property received a welfare tax exemption but lost the exemption due to a change in control, change in ownership, or removal, resignation, or replacement of a nonprofit managing general partner, as those terms are defined, and that the benefit is necessary to continue maintaining the welfare exemption on the property, in lieu of providing evidence that facilities are in the course of construction. The bill would make this extended benefit applicable to property tax installments that are due and payable from December 10, 2027.</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
By imposing additional duties on local tax officials, the bill would impose a state-mandated local program.
</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_310384F2-5E26-48F1-9060-3E8B874DB13B">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 254.4 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_B64432C3-321D-4564-B31B-B1FF2116EE16">
<ns0:Num>254.4.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The county assessor shall accept electronic signatures for materials necessary to claim, maintain, or otherwise receive the welfare exemption, including, but not limited to, annual income verification.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The county board of supervisors shall, if necessary and in collaboration with the county assessor, adopt any ordinances or resolutions to implement subdivision (a).
</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 259.16 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:Num>259.16.</ns0:Num>
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<html:p>
(a)
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(1)
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The county assessor shall make all documentation requirements for the exemption provided under subdivision (g) of Section 214 that are related to the certification that a unit is occupied by a lower income household, as applicable, available on its internet website. The documentation made available shall also include clear information about variations in requirements based on property type.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The county assessor shall update the information made available pursuant to this subdivision within seven days of any changes.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “lower income household” shall have the same meaning as set forth in Section 50079.5 of the
Health and Safety Code.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 259.17 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_B70DA4A9-E902-4508-A8BB-6A9734B43CEF">
<ns0:Num>259.17.</ns0:Num>
<ns0:LawSectionVersion id="id_A3AA91B2-CF2D-444C-9BC2-FE912196259B">
<ns0:Content>
<html:p>Every county shall release all forms related to the annual recertification of tenant income necessary to receive the exemption under Section 214 by November 15 of each calendar year prior to the due date for the forms.</html:p>
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 4985.05 of the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_E556C8DB-867D-40AD-85D2-CE29513A299D">
<ns0:Num>4985.05.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any other law, but except as provided in subdivision (b), a property owner shall not be liable for interest or penalties, nor shall the tax collector take or continue any collection action, with respect to any ad valorem property taxes levied upon a property if the property owner satisfies all of the following requirements annually while receiving the benefit:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The property owner supplies evidence to the tax collector that the property owner has submitted to the county assessor an application for an exemption pursuant to subdivision (g) of Section 214, including, but not limited to, the information required under Section 254.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The property owner supplies evidence to the tax collector that they received a reservation of tax credits from the California Tax Credit Allocation Committee or an award of funds from the Department of Housing and Community Development, including a copy of the reservation letter or notice of award.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Facilities are in the course of construction, as defined in Section 214.2 of the Revenue and Taxation Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Evidence that the property received a welfare tax exemption, but lost the exemption due to a change in control, change in ownership, or removal, resignation, or replacement of a nonprofit managing general partner of the property, and that the benefit provided by this
section is necessary to continue maintaining the welfare exemption on the property.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The treatment of delinquent installments of ad valorem property tax and associated penalties and interest under subdivision (a) shall not apply to any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The prorated portion of any delinquent installments of ad valorem property taxes that are related to improvements not eligible for an exemption or to residential units not restricted as affordable to lower and very low income households pursuant to the reservation of tax credits from the California Tax Credit Allocation Committee or the award of funds from the Department of Housing and Community Development.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any late or delinquent installments of ad valorem
property taxes related to property which the assessor, upon completion of its review of the application for exemption pursuant to subdivision (g) of Section 214, has deemed ineligible for exemption.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Any delinquent installment of ad valorem taxes for property that, after four years from the date the claim for the welfare exemption was filed with the assessor, has not been developed in a manner that would make the property eligible for exemption under subdivision (g) of Section 214.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
An eligible property owner who is not liable for penalties or interest under this section shall provide verification of eligibility to the tax collector annually. The tax collector shall provide the list of eligible properties to the assessor.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If an assessor deems an application ineligible for exemption, as described in paragraph (2) of subdivision (b), they shall make the notice required in paragraph (2) of subdivision (c) of Section 254.5 and provide a copy of the notification to the tax collector upon receipt of the annual eligibility list.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Any bill, notice of deficiency, or other routine communication sent to the taxpayer from the tax collector shall not constitute a collection action under this section.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
For purposes of this section, the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Change in control” has the same meaning as described in subdivision (c) of Section 64 and as that term is used otherwise in this division.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Change in ownership” has the same meaning as that term is used in subdivision (d) of Section 64 and as that term is used otherwise in this division.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Paragraph (1) of subdivision (a) and related provisions of this section shall apply to property tax installments that are due and payable from December 10, 2025, to April 10, 2031.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Paragraph (2) of subdivision (a) and related provisions of this section shall apply to property tax installments that are due and payable from December 10,
2027.
</html:p>
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<ns0:BillSection id="id_ACFC80F9-9DDE-41F6-9040-42FAD112700F">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:Content>
<html:p>If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.</html:p>
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