AB 2167: Property tax: documentary transfer tax: exemptions: nonprofit corporations chartered under tribal or federal law.

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. Chapter 2 of the Statutes of 2026 (AB 1485) provides 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.

This bill would expand the above-described authorization, for purposes of the exemption for property used exclusively for the preservation of specified natural resources or open-space lands, to include property owned and operated by a nonprofit corporation chartered by a federally recognized tribe pursuant to tribal law or a specified provision of federal law, or a wholly owned tribal entity, as defined.

(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. AB 1485 exempts from that tax, until January 1, 2031, the transfer of any deed, instrument, or other writing that makes effective a tribal land return transaction. AB 1485 defines a “tribal land return transaction” to mean a land return acquisition that transfers ownership of land to a federally recognized tribe or a wholly owned subsidiary of a federally recognized Indian tribe in fee simple and that includes specified restrictive covenants.

This bill would, for these purposes, expand the definition of “tribal land return transaction” to include a land return acquisition that transfers ownership of land to a nonprofit corporation chartered by a federally recognized tribe pursuant to tribal law or a specified provision of federal law, or a wholly owned tribal entity, 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): Republican 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 584, Statutes of 2026.
2. September 27, 2026Approved by the Governor.
3. September 15, 2026Enrolled and presented to the Governor at 3 p.m.
4. August 31, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 7027.).
5. August 28, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 27, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).
7. August 13, 2026Read second time. Ordered to third reading.
8. August 13, 2026From committee: Do pass. (Ayes 7. Noes 0.) (August 13).
9. August 3, 2026In committee: Referred to APPR. suspense file.
10. June 24, 2026From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.
11. June 11, 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.
12. June 8, 2026In committee: Set, first hearing. Hearing canceled at the request of author.