AB 1668: Property tax: welfare exemption.

Official summary

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

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 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. Existing law makes that provision operative up to, and including, the lien date in 2027 and repeals that provision on January 1, 2028.

This bill would extend the above-described operative date up to, and including, the lien date in 2032 and would extend the corresponding repeal date to January 1, 2033. By imposing additional duties upon local tax officials, this bill would impose a state-mandated local program.

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 state that it is the intent of the Legislature to apply those requirements to the bill and would set forth specified information relating to those requirements.

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.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“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. September 29, 2026Chaptered by Secretary of State - Chapter 814, Statutes of 2026.
2. September 29, 2026Chaptered by Secretary of State - Chapter 814, Statutes of 2026.
3. September 29, 2026Approved by the Governor.
4. September 29, 2026Approved by the Governor.
5. August 27, 2026Enrolled and presented to the Governor at 4 p.m.
6. August 27, 2026Enrolled and presented to the Governor at 4 p.m.
7. August 20, 2026In Assembly. Ordered to Engrossing and Enrolling.
8. August 20, 2026In Assembly. Ordered to Engrossing and Enrolling.
9. August 20, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5589.).
10. August 20, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).
11. August 18, 2026Ordered to special consent calendar.
12. August 18, 2026Ordered to special consent calendar.