Bills

SB 336: Real property tax: welfare exemption: moderate-income housing.

  • Session Year: 2025-2026
  • House: Senate
  • Latest Version Date: 2025-05-07

Current Status:

Failed

(2026-02-02: Returned to Secretary of Senate pursuant to Joint Rule 56.)

Introduced

In Committee

Awaiting First Chamber Vote

Passed First Chamber

In Committee

Awaiting Second Chamber Vote

Passed Second Chamber

Enacted

What does this bill do?

This bill lets certain nonprofit-owned rental housing get a partial property tax exemption when some units are reserved for low- and moderate-income households, with the exemption equal to the share of qualifying units. To qualify, owners must swear under penalty of perjury (a criminal penalty for lying under oath) that those units will be rent‑restricted for at least 55 years, that initial rents are below local fair‑market levels based on a market study, and that the tax savings will be used to keep rents affordable; it applies only to properties with new or converted residential units on or after January 1, 2026.

The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.

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. That law provides a partial welfare exemption in the case of residential rental property used for lower income households, as specified, calculated as 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.

This bill would provide a partial welfare exemption in the case of certain residential rental property used for low- and moderate-income households. The partial exemption would be equal to that percentage of the value of the property that is equal to the percentage that the number of units serving low- and moderate-income households households, as defined, represents of the total number of residential units, as provided. The bill would require an owner to make specified certifications, under penalty of perjury, relating to the use of the property. By expanding the duties of local tax officials, and by expanding the crime of perjury, this bill would impose a state-mandated local program.

The bill would declare that its provisions are severable.

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 with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so 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.

Discussed in Hearing

Senate Standing Committee on Appropriations 31SEC
May 19, 2025

Senate Standing Committee on Appropriations

Senate Standing Committee on Revenue and Taxation 9MIN
May 14, 2025

Senate Standing Committee on Revenue and Taxation

View Older Hearings
Authors shown for version:
Amended Senate (5/7/2025)

Bill Author

Bill Co-Author(s):