AB 672: Real property tax: welfare exemption: community land trusts.

Session Year: 2025-2026
House: Assembly
Latest Version Date: 2026-04-28

Current Status:

In Progress

(2026-05-13: Re-referred to Com. on REV. & TAX.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

Existing property tax law, pursuant to constitutional authorization, 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.

Existing law also provides, until January 1, 2027, that property is within the welfare exemption if that property is owned by a community land trust, as defined, otherwise qualifying for the welfare exemption, and specified conditions are met, including that the property is being or will be developed or rehabilitated as housing, as specified. Existing law, however, makes community land trusts liable for property tax for the years for which the property was exempt from taxation if the property was not developed or rehabilitated, or if the development or rehabilitation is not in the course of construction, by January 1, 2027, for property acquired before January 1, 2022, or within 5 years of the lien date following acquisition of the property, for property acquired on and after January 1, 2022.

This bill would extend the operation of these provisions until January 1, 2032. The bill would make various conforming changes, including with respect to the lien dates for which the exemption applies. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program.

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.

(1)Existing law establishes the Public Employment Relations Board (PERB) in state government as a means of resolving disputes and enforcing the statutory duties and rights of specified public employers and employees under various acts regulating collective bargaining. Under existing law, PERB has the power and duty to investigate an unfair practice charge and to determine whether the charge is justified and the appropriate remedy for the unfair practice. This bill would require a plaintiff or petitioner filing a civil action seeking injunctive relief against a strike, work stoppage, or other labor action by public employees whose labor relations are regulated by PERB, if PERB is not a party to the action, to serve a copy of the petition or complaint by electronic mail on the general counsel of PERB, in accordance with certain procedures. The bill would also require a plaintiff or petitioner that intends to apply to a superior court for a temporary restraining order to enjoin a strike, work stoppage, or other labor action by public employees whose labor relations are regulated by PERB, if PERB is not a party to the action, to give notice by electronic mail to the general counsel of PERB of the application when the plaintiff or petitioner provides that notice to the defendant or respondent. The bill would specify that the above-described provisions do not authorize a plaintiff or petitioner to seek relief in court without first exhausting administrative remedies before PERB when exhaustion is required by statute, regulation, or case law.This bill would grant PERB the right, upon timely application, to intervene in a civil action arising from a labor dispute that involves public employees whose labor relations are regulated by PERB and that PERB claims implicate the constitutionality, interpretation, or enforcement of a statute administered by PERB.(2)Existing law, the Trial Court Employment Protection and Governance Act, establishes procedures regulating, among other matters, court employee classification and compensation, labor relations, and employment protection. Existing law requires the Judicial Council to adopt rules of court that provide a mechanism for the establishment of a panel of court of appeal justices who are qualified to hear certain petitions relating to arbitration and writ applications and from which a single justice is required to be assigned to hear the matter in the superior court, as prescribed.This bill would require the Judicial Council to adopt rules of court that provide a mechanism for the establishment of a panel of court of appeal justices who would be qualified to hear actions that seek to enjoin strikes, work stoppages, or other labor activity by trial court employees, from which a single justice would be assigned to hear the matter in the superior court in accordance with certain procedures.

Discussed in Hearing