AB 1485: Property tax: documentary transfer tax: exemptions: Native American tribes.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)The California Constitution authorizes the Legislature to exempt from taxation, in whole or in part, property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity. Pursuant to that authority, existing law provides for a welfare exemption under which property used exclusively for an exempt purpose and owned and operated by specified entities, including foundations, limited liability companies, or corporations meeting certain statutory requirements, is exempt from taxation. Existing law, until the lien date in 2027, also provides that property used exclusively for the preservation of specified natural resources or open-space lands owned or operated by a specified entity meeting specified criteria is deemed to be included within the welfare exemption.

This bill would provide that, for purposes of the exemption for property used exclusively for the preservation of specified natural resources or open-space lands, for the property tax lien dates for the 2026–27 fiscal year to the 2031–32 fiscal year, inclusive, property may be owned and operated by a federally recognized Indian tribe or a wholly owned subsidiary of a federally recognized Indian tribe meeting certain requirements. By expanding the duties of local tax officials, this bill would impose a state-mandated local program.

(2)Existing law authorizes counties and cities and counties to impose a documentary transfer tax at a specified rate upon deeds, instruments, or other writings by which specified property is transferred. Existing law exempts certain transfers from the imposition of that tax, as specified.

This bill would, until January 1, 2031, exempt from that tax the transfer of any deed, instrument, or other writing that makes effective a tribal land return transaction, as defined.

(3)Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

Sponsors

Sponsors by party (alphabetical): Democratic 1 · Republican 4

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 10, 2026Chaptered by Secretary of State - Chapter 2, Statutes of 2026.
2. February 10, 2026Approved by the Governor.
3. February 5, 2026Enrolled and presented to the Governor at 2:30 p.m.
4. January 29, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 0. Page 3884.).
5. September 12, 2025In Assembly. Concurrence in Senate amendments pending.
6. September 11, 2025Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2933.).
7. September 9, 2025Ordered to special consent calendar.
8. September 8, 2025Read second time. Ordered to third reading.
9. September 5, 2025Read third time and amended. Ordered to second reading.
10. September 2, 2025Read second time. Ordered to third reading.
11. August 29, 2025Read second time and amended. Ordered returned to second reading.
12. August 29, 2025From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 29).