AB 2084: Corporation Tax Law: tax-exempt organizations: revocation of tax-exempt status.

Official summary

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

Existing law, the Corporation Tax Law, exempts organizations that are organized and operated for nonprofit purposes, as specified, from taxes imposed by that law if the Franchise Tax Board issues a determination exempting the organization from tax, except as provided. To receive a determination of exemption from the board, existing law requires the organization to either submit an application for exemption or to submit documentation of exemption from federal income tax law, as provided. For organizations that submit documentation of their federal exemption, existing law requires the board to suspend or revoke, as applicable, an organization’s state exemption upon notification that the organization’s federal exemption is suspended or revoked.

This bill would instead authorize the board, in its discretion, to retain the organization’s tax-exempt status for state income tax purposes if it determines this suspension or revocation occurred for reasons other than fraud, intentional misrepresentation, misuse or diversion of organizational funds, failure to file necessary returns or reports, or other breaches of organizational reporting or governance requirements.

This bill would take effect immediately as a tax levy.

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 30, 2026Chaptered by Secretary of State - Chapter 921, Statutes of 2026.
2. September 30, 2026Chaptered by Secretary of State - Chapter 921, Statutes of 2026.
3. September 30, 2026Approved by the Governor.
4. September 30, 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 28. Noes 10. Page 5584.).
10. August 20, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 10.).
11. August 13, 2026Read second time. Ordered to third reading.
12. August 13, 2026From committee: Do pass. (Ayes 5. Noes 2.) (August 13).