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

California, 20252026. AB 672: Real property tax: welfare exemption: community land trusts.

Plural source record ↗

Official legislative source ↗

Latest action

September 30, 2026 — Chaptered by Secretary of State - Chapter 868, Statutes of 2026.

Summary

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. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. This bill would take effect immediately as a tax levy.

Sponsors

• Caloza — primary sponsor

Bill text

AB672 Read version ↗

02/14/25 - Introduced Read version ↗

06/18/25 - Amended Senate Read version ↗

04/28/26 - Amended Senate Read version ↗

08/20/26 - Amended Senate Read version ↗

09/01/26 - Enrolled Read version ↗

09/30/26 - Chaptered Read version ↗

Recorded votes

Legislative history

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 39. Noes 0. Page 5752.).
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.
13. August 13, 2026From committee: Do pass. (Ayes 7. Noes 0.) (August 13).
14. June 22, 2026In committee: Referred to APPR. suspense file.
15. June 10, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (June 10). Re-referred to Com. on APPR.
16. May 13, 2026Re-referred to Com. on REV. & TAX.
17. April 30, 2026Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(c).
18. April 29, 2026Read second time. Ordered to third reading.
19. April 28, 2026Read second time and amended. Ordered returned to second reading.
20. April 28, 2026Ordered to second reading.
21. April 28, 2026From inactive file.
22. August 25, 2025Ordered to inactive file at the request of Senator Durazo.
23. August 20, 2025Read second time. Ordered to third reading.
24. August 19, 2025From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
25. July 16, 2025From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (July 15). Re-referred to Com. on APPR.
26. June 25, 2025From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 1.) (June 25). Re-referred to Com. on JUD.
27. June 18, 2025From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R.
28. June 18, 2025Referred to Coms. on L., P.E. & R. and JUD.
29. May 15, 2025In Senate. Read first time. To Com. on RLS. for assignment.
30. May 15, 2025Read third time. Passed. Ordered to the Senate. (Ayes 62. Noes 4. Page 1562.)
31. May 8, 2025Read second time. Ordered to third reading.
32. May 7, 2025From committee: Do pass. (Ayes 11. Noes 0.) (May 7).
33. April 8, 2025From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 8). Re-referred to Com. on APPR.
34. March 19, 2025From committee: Do pass and re-refer to Com. on JUD. (Ayes 6. Noes 0.) (March 19). Re-referred to Com. on JUD.
35. March 3, 2025Referred to Coms. on P. E. & R. and JUD.
36. February 15, 2025From printer. May be heard in committee March 17.
37. February 14, 2025Read first time. To print.

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