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<ns0:Id>20250AB__239499INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>2394</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Lee</ns0:AuthorText>
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<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Lee</ns0:Name>
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<ns0:Title> An act to add Section 17152.5 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. </ns0:Title>
<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Personal Income Tax Law: exclusions: real property.</ns0:Subject>
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<html:p>The Personal Income Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.</html:p>
<html:p>This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would exclude from gross income amounts received by a qualified taxpayer as a result of the sale or exchange of certain real property. The bill would define “qualified taxpayer” to mean an individual who is 65 years of age or older and who has owned the real property for 20 years or more.</html:p>
<html:p>This bill would take effect immediately as a tax levy.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
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<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>YES</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 17152.5 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:Num>17152.5.</ns0:Num>
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(a)
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For taxable years beginning on or after January 1, 2027, and before January 1, 2032, gross income does not include any income received by a qualified taxpayer as a result of the sale or exchange of qualified real property.
</html:p>
<html:p>
(b)
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For purposes of this section, the following definitions shall apply:
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<html:p>
(1)
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“Qualified real property” means real property for which both of the following are true:
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<html:p>
(A)
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The qualified taxpayer has, or the qualified taxpayer or their spouse in the case of spouses filing joint returns have, owned the real property for 20 consecutive years or longer.
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(B)
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The real
property is owned entirely by the taxpayer or, in the case of spouses filing joint returns, entirely by the taxpayer and their spouse.
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(2)
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“Qualified taxpayer” means an individual who is 65 years of age or older.
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<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
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