AB 2089: Property taxation: welfare exemption.

Official summary

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

Except as provided, the California Constitution requires that all property be taxed in proportion to its full value and assessed at the same percentage of fair market value. The tax imposed pursuant to these provisions is commonly referred to as an ad valorem property tax. Existing property tax law, in accordance with the California Constitution, 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 any of certain qualifying criteria are met, including that the owner of the property receives low-income housing tax credits pursuant to specified provisions of the Internal Revenue Code. Under existing property tax law, property that meets these requirements that is used exclusively for rental housing and related facilities is entitled to a partial exemption, equal to 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, in any year that any of certain criteria apply.

Existing property tax law, for the 2018–19 fiscal year through the 2027–28 fiscal year, in the case of an owner of property who is eligible for the federal low-income housing tax credit, requires that a unit continue to be treated as occupied by a lower income household if the occupants were lower income households on the lien date in the fiscal year in which occupancy of the unit commenced and the unit continues to be rent restricted, notwithstanding an increase in the income of the occupants of the unit to 140% of area median income.

This bill would extend the above-described provision through the 2028–29 fiscal year.

Existing property tax law establishes procedures for claiming the welfare exemption, including requiring the annual filing of a claim for the exemption with the county assessor, as provided.

This bill would authorize the county assessor to accept electronic signatures for materials necessary to claim, maintain, or otherwise receive the welfare exemption. The bill would require the county board of supervisors to, if necessary and in collaboration with the county assessor, adopt any ordinances or resolutions to implement the electronic portal and submission authorization. The bill would require, as provided, every county to release all forms related to the annual recertification of tenant income necessary to receive the welfare exemption by November 15 of each calendar year prior to the due date for the forms.

By imposing additional duties on counties, the bill would impose a state-mandated local program.

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 27, 2026Chaptered by Secretary of State - Chapter 577, Statutes of 2026.
2. September 27, 2026Approved by the Governor.
3. September 3, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 26, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6640.).
5. August 26, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 26, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).
7. August 24, 2026Read second time. Ordered to third reading.
8. August 21, 2026Read third time and amended. Ordered to second reading.
9. August 4, 2026Read second time. Ordered to third reading.
10. August 3, 2026From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
11. June 24, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.
12. June 16, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on REV. & TAX.