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<ns0:Description>
<ns0:Id>20250SB__078996AMD</ns0:Id>
<ns0:VersionNum>96</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-21</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-03-26</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-04-21</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-04-30</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>789</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Menjivar</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Menjivar</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to add and repeal Part 6.8 (commencing with Section 11950) of Division 2 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.</ns0:Title>
<ns0:RelatingClause>taxation, and making an appropriation therefor</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Taxation: information returns: vacant commercial real property.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>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. Existing statutory 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. Existing law establishes the California Department of Tax and Fee Administration for the purpose of administering various taxes.</html:p>
<html:p>This bill would require a person, as defined, that owns commercial property, as defined, in this state to register with the department, as provided. The bill would require every person owning commercial real property in this state to file an information return each year by a date determined by the department, as provided. The bill
would require the information return to include specified information, including, among other requirements, whether any buildings or portions of buildings were vacant in the previous calendar year. The bill would authorize extensions of the time for a person to file an information return under specified circumstances, including for good cause. The bill would impose on any person who fails or refuses to timely furnish a return required by its provisions a penalty of $100 per commercial property that the person fails or refuses to timely furnish the information return.
The bill would authorize the Director of Finance to make a loan from the General Fund to the department to implement those provisions, and would require any loan to be repaid from revenues from penalties imposed. By authorizing the expenditure of moneys from the General Fund for specified purposes, the bill would create an appropriation.</html:p>
<html:p>This bill would require the department to collect information from the
information returns filed pursuant to its provisions and would require the department to annually post on its internet website data aggregated by ZIP Code, including, among other information, the percentage of commercial properties included in information returns required under this part that were vacant in a calendar year.</html:p>
<html:p>The bill would repeal these provisions as of January 1, 2031. The bill would also make findings and declarations related to its provisions.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>YES</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<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_8357AED3-F267-4856-8936-AE44353ED959">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Prolonged vacancies in commercial properties undermine local economic vitality, reduce tax revenues, and contribute to neighborhood deterioration.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Information is necessary to determine how a tax on long-term vacant commercial buildings could be designed to create incentives for property activation, support equitable community development, and generate revenue for the California Dream for All Program (Chapter 12 (commencing with Section 51520) of Part 3 of Division 31 of the Health and Safety
Code).
</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_00A95A1E-96EC-4643-8901-959C4C5010E5">
<ns0:Num>SEC. 2.</ns0:Num>
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Part 6.8 (commencing with Section 11950) is added to Division 2 of the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:Fragment>
<ns0:LawHeading id="id_BFB8DD55-010D-4139-909B-F03BA699DC19" type="PART">
<ns0:Num>6.8.</ns0:Num>
<ns0:LawHeadingVersion id="id_414C3822-28D2-4DD9-B756-B50B2F28B24D">
<ns0:LawHeadingText>Commercial Real Property Information Returns</ns0:LawHeadingText>
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<ns0:LawSection id="id_7D4530FD-8D31-49B7-8BF1-448796EC2A66">
<ns0:Num>11950.</ns0:Num>
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<ns0:Content>
<html:p>For purposes of this part:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Active renovation” means construction or repair pursuant to an approved building permit, with work ongoing for at least 90 consecutive days.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Commercial real property” has the same meaning as defined in subdivision (c) of Section 2079.13 of the Civil Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Department” means the California Department of Tax and Fee Administration.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“Person” includes, but is not limited to, an individual, group, limited liability company, trust, or entity holding legal or
equitable title to the property. “Person” does not include any city, county, city and county, district, commission, the state or any department, agency, or political subdivision thereof, any interstate body, or the United States and its agencies and instrumentalities.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
“Vacant” means commercial real property that is not subject to a valid lease agreement or actively used for commercial
purposes.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_99516C74-BDC0-462B-BB02-F7A835FADD73">
<ns0:Num>11951.</ns0:Num>
<ns0:LawSectionVersion id="id_EFFEA0E4-7386-4E17-845A-1ABA30822E34">
<ns0:Content>
<html:p>Every person owning commercial real property in this state shall register with the department in a form or manner as prescribed by the department.</html:p>
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</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_3B8EFD2A-8761-4C67-A9C3-D0316533477C">
<ns0:Num>11952.</ns0:Num>
<ns0:LawSectionVersion id="id_C8FF2165-33E5-43F7-9494-1BFDCA8076F3">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Every person owning commercial real property in this state shall file an information return, subject to the requirements of subdivision (b), each year by a date determined by the department and in the form and manner as prescribed by the department, which may include, but shall not be limited to, electronic media. Returns shall be authenticated in a form or manner as prescribed by the department.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The information return pursuant to subdivision (a) shall include the following information:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The address of each commercial real property owned by the person in the state in the previous calendar year.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The building or buildings on each commercial real property.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Whether any buildings or portions of each building described in paragraph (2) were vacant in the previous calendar year.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The number of days in the calendar year that each building described in paragraph (2) was vacant.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The reason for each vacancy described in paragraph (3).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Whether any of the following conditions apply with respect to each vacancy described in paragraph (3):
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The person is engaged in active renovation, including obtaining valid building permits and
ongoing construction.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
There are legal or regulatory barriers, including litigation,
environmental reviews, or permitting delays preventing occupancy.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The commercial real property has been affected by a natural disaster, including properties deemed uninhabitable by state or local authorities.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A person required to file an information return under this section shall endeavor to ensure that the same property is not listed on multiple returns.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_627FE3B4-D969-4958-B733-33119430661F">
<ns0:Num>11953.</ns0:Num>
<ns0:LawSectionVersion id="id_2195760F-92F2-4CAE-8D8D-F60CDC3543A6">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Except as provided in subdivision (b), the department for good cause may extend for not to exceed one month the time for filing an information return required under this part. The extension may be granted at any time if a request for that extension is filed with the department within or prior to the period for which the extension may be granted.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In the case of a disaster, the department, for a period not to exceed three months, may extend the time for filing any return required under this part. The extension may be granted at any time provided a request therefor is filed with the department within or before the period for which the
extension may be granted.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this section, “disaster” means fire, flood, storm, tidal wave, earthquake, or a similar public calamity, whether or not resulting from natural causes.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_F20A39B3-598B-4FC3-B060-E1FABA9141D8">
<ns0:Num>11954.</ns0:Num>
<ns0:LawSectionVersion id="id_251F54BA-BD2F-473C-9CAB-E60895FDCB68">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Subject to subdivision (c), if the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for filing any return required under this part for any person in an area identified in the state of emergency proclamation.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The department may make the extension in subdivision (a) only
during the first 12 months following the issuance of the state
of emergency proclamation or the duration of the state of emergency, whichever is less.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_927E083E-09EC-415A-BEB5-8D7AD39057A8">
<ns0:Num>11955.</ns0:Num>
<ns0:LawSectionVersion id="id_71B2DBAC-7FC6-4FB9-8641-BE3FA01025E5">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Subject to subdivision (b), any person subject to this part who fails or refuses to timely furnish an information return required by this part, or other data required by this part, shall be subject to a penalty of one hundred dollars ($100) per commercial property that the person fails or refuses to timely furnish the information
return.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
If the department finds that a person’s failure to file a timely return is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, the person may be relieved of the penalty imposed by this section.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_F8B34A24-EFAE-4CCB-9BE5-69C7C2E6E31B">
<ns0:Num>11956.</ns0:Num>
<ns0:LawSectionVersion id="id_7C96EFD9-5CFB-4395-B09B-E7E6DA615310">
<ns0:Content>
<html:p>The department shall collect information from the information returns filed pursuant to Section 11952 and shall post on the department’s internet website, on or before July 1 of each year, data aggregated by ZIP Code, including all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
The number of persons filing information returns required under this part in a calendar year.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The percentage of commercial properties included in information returns required under this part that were vacant in a calendar year.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Aggregated reasons for vacancy, specifically for those where vacancy existed for
more than 182 days in a calendar year.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The percentage of commercial properties where the person indicated that one of the conditions in paragraph (6) of subdivision (b) of Section 11952 applied, and for each condition, the percentage of persons indicating that condition applied out of persons indicating one of the conditions applied.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_37489CC3-87CA-4C07-B8CB-103CE96E2471">
<ns0:Num>11957.</ns0:Num>
<ns0:LawSectionVersion id="id_316C6C9A-E32A-467B-8AB6-37B2BBDAB135">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any other law, the Director of Finance may authorize a loan from the General Fund to the department for purposes of implementing the activities described in this part.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Any loan made pursuant to this part shall be repaid from the penalties imposed under this part.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_8782282F-21AE-4020-8165-ECE2F676891D">
<ns0:Num>11958.</ns0:Num>
<ns0:LawSectionVersion id="id_3FE40444-4978-4246-946E-F36511A87E9F">
<ns0:Content>
<html:p>This part shall remain in effect only until January 1, 2031, and as of that date is repealed.</html:p>
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