AB 698: Local taxation: real property transfers.

Official summary

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

Existing statutory law, enacted by Proposition 62, as approved by the voters at the November 4, 1986, statewide general election, prohibits a local government or district from imposing any transaction tax or sales tax on the sale of real property within the city, county, or district, except as provided. The California Constitution authorizes cities organized under a charter to make and enforce all ordinances and regulations in respect to municipal affairs, which supersede inconsistent general laws. Existing law, the Documentary Transfer Tax Act, authorizes the imposition of a tax by a county or city, as provided, with respect to specified instruments that transfer specified interests in real property.

This bill would require a legislative body of a city, as specified, before it adopts any transfer tax on the sale of real property, to develop and post on its internet website an analysis that examines, at a minimum, the effect of the proposed transfer tax on, among other things, the production of affordable housing, including affordable housing produced by market-rate housing projects.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“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. June 9, 2025In Senate. Read first time. To Com. on RLS. for assignment.
2. June 5, 2025Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 0. Page 2102.)
3. June 2, 2025Read third time and amended. Ordered to third reading. (Page 1951.)
4. May 6, 2025Read second time. Ordered to third reading.
5. May 5, 2025Read second time and amended. Ordered returned to second reading.
6. May 1, 2025From committee: Amend, and do pass as amended. (Ayes 10. Noes 0.) (April 30).
7. April 1, 2025Re-referred to Com. on L. GOV.
8. March 28, 2025From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.
9. March 28, 2025Referred to Com. on L. GOV.
10. February 15, 2025From printer. May be heard in committee March 17.
11. February 14, 2025Read first time. To print.