AB 672: Real property tax: welfare exemption: community land trusts.

Official summary

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

Existing property tax law, pursuant to constitutional authorization, 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 certain qualifying criteria are met.

Existing law also provides, until January 1, 2027, that property is within the welfare exemption if that property is owned by a community land trust, as defined, otherwise qualifying for the welfare exemption, and specified conditions are met, including that the property is being or will be developed or rehabilitated as housing, as specified. Existing law, however, makes community land trusts liable for property tax for the years for which the property was exempt from taxation if the property was not developed or rehabilitated, or if the development or rehabilitation is not in the course of construction, by January 1, 2027, for property acquired before January 1, 2022, or within 5 years of the lien date following acquisition of the property, for property acquired on and after January 1, 2022.

This bill would extend the operation of these provisions until January 1, 2032. The bill would make various conforming changes, including with respect to the lien dates for which the exemption applies.

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 above-described exemption and would set forth specified information relating to those requirements. In that regard, the bill would require the assessor to provide the State Board of Equalization with certain information and would require the assessor to retain that information, as specified.

By imposing additional duties on local tax officials, 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 30, 2026Chaptered by Secretary of State - Chapter 868, Statutes of 2026.
2. September 30, 2026Approved by the Governor.
3. September 4, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 27, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0. Page 6736.).
5. August 27, 2026From committee: That the Senate amendments be concurred in. (Ayes 7. Noes 0.) (August 27).
6. August 26, 2026Joint Rule 62(a), file notice suspended. (Page 6563.)
7. August 25, 2026Re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 77.2.
8. August 25, 2026In Assembly. Concurrence in Senate amendments pending.
9. August 25, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0.).
10. August 24, 2026Read second time. Ordered to third reading.
11. August 20, 2026Read third time and amended. Ordered to second reading.
12. August 13, 2026Read second time. Ordered to third reading.