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Measure AB 698
Authors Wicks   Mark González  
Subject Local taxation: real property transfers.
Relating To relating to local government.
Title An act to add Section 37100.6 to the Government Code, relating to local government.
Last Action Dt 2025-06-02
State Amended Assembly
Status Pending Referral
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee No
Local Program No
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-06-09     In Senate. Read first time. To Com. on RLS. for assignment.
2025-06-05     Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 0. Page 2102.)
2025-06-02     Read third time and amended. Ordered to third reading. (Page 1951.)
2025-05-06     Read second time. Ordered to third reading.
2025-05-05     Read second time and amended. Ordered returned to second reading.
2025-05-01     From committee: Amend, and do pass as amended. (Ayes 10. Noes 0.) (April 30).
2025-04-01     Re-referred to Com. on L. GOV.
2025-03-28     Referred to Com. on L. GOV.
2025-03-28     From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.
2025-02-15     From printer. May be heard in committee March 17.
2025-02-14     Read first time. To print.
Keywords
Tags
Versions
Amended Assembly     2025-06-02
Amended Assembly     2025-05-05
Amended Assembly     2025-03-28
Introduced     2025-02-14
Last Version Text 
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Members Wicks and Mark González</ns0:AuthorText>
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		<ns0:Title>An act to add Section 37100.6 to the Government Code, relating to local government.</ns0:Title>
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			<ns0:Subject>Local taxation: real property transfers.</ns0:Subject>
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			<html:p>Existing statutory law, enacted by Proposition 62, as approved by the voters at the November 4, 1986, statewide general election, prohibits a local government or district from imposing any transaction tax or sales tax on the sale of real property within the city, county, or district, except as provided. The California Constitution authorizes cities organized under a charter to make and enforce all ordinances and regulations in respect to municipal affairs, which supersede inconsistent general laws. Existing law, the Documentary Transfer Tax Act, authorizes the imposition of a tax by a county or city, as provided, with respect to specified instruments that transfer specified interests in real property.</html:p>
			<html:p>This bill would require a legislative body of a city, as specified, before it adopts any transfer tax on the sale of real property, to develop
			 and post on its internet website an analysis that examines, at a minimum, the effect of the proposed transfer tax on, among other things, the production of affordable housing, including affordable housing produced by market-rate housing projects.</html:p>
			<html:p>The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.</html:p>
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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 37100.6 is added to the 
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				, to read:
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							<html:p>Before a legislative body, including, but not limited to, the legislative body of a charter city, adopts any transfer tax on the sale of real property, the legislative body shall develop and post on its internet website an analysis that examines, at a minimum, the effect of the proposed transfer tax on all of the following:</html:p>
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								(a)
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								The production of affordable housing, including affordable housing produced by market-rate housing projects.
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								(b)
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								The production of market-rate housing units.
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								(c)
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								Property tax revenue for the city, county, state, and any relevant special
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				<html:p>The Legislature finds and declares that (a) property tax receipts are reduced by fewer property sales and a reduction in property tax has a countywide impact, and (b) the provision of adequate housing, in light of the severe shortage of housing at all income levels in this state, are matters of statewide concern and are not municipal affairs as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act adding Section 37100.6 to the Government Code applies to all cities, including charter cities.</html:p>
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Last Version Text Digest Existing statutory law, enacted by Proposition 62, as approved by the voters at the November 4, 1986, statewide general election, prohibits a local government or district from imposing any transaction tax or sales tax on the sale of real property within the city, county, or district, except as provided. The California Constitution authorizes cities organized under a charter to make and enforce all ordinances and regulations in respect to municipal affairs, which supersede inconsistent general laws. Existing law, the Documentary Transfer Tax Act, authorizes the imposition of a tax by a county or city, as provided, with respect to specified instruments that transfer specified interests in real property. This bill would require a legislative body of a city, as specified, before it adopts any transfer tax on the sale of real property, to develop and post on its internet website an analysis that examines, at a minimum, the effect of the proposed transfer tax on, among other things, the production of affordable housing, including affordable housing produced by market-rate housing projects. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.