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California bills · 2025-2026 Regular Session

California AB 1294

Real property tax: welfare exemption: moderate-income housing.

  1. Introduced
  2. In committee
  3. Passed House
  4. Passed Senate
  5. To Governor
  6. Became law

Sponsors

Cosponsors (2)

Summary

Official abstract published by the California legislature· 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. That law provides a partial welfare exemption in the case of residential rental property used for lower income households, as specified, calculated as 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. This bill would, for lien dates commencing on or after January 1, 2027, and before January 1, 2030, provide a partial welfare exemption in the case of certain residential rental property used for low- and moderate-income households. The partial exemption would be equal to the value of the units serving low- and moderate-income households, as defined. The bill would require an owner to make specified certifications relating to the use of the property. The bill would apply the exemption described above for a period of 15 years from the date of the initial filing of the exemption, as specified. By expanding the duties of local tax officials, and by expanding the crime of perjury, the bill would impose a state-mandated local program. This bill would declare that the above provisions are severable. 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. This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Alameda and Sacramento and the City and County of San Francisco. This bill would incorporate additional changes to Section 214 of the Revenue and Taxation Code proposed by AB 2089 to be operative only if this bill and AB 2089 are enacted and this bill is enacted last. 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 with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so 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.

Text versions

Roll-call votes

State vote data last updated Oct 14, 2026, 12:15 PM.

DateVoteResultYour legislators
Aug 31, 2026
House		AB 1294 Haney Concurrence in Senate AmendmentspassSet your home in California to see
Aug 26, 2026
Senate		3rd Reading AB1294 Haney et al. By ArreguínpassSet your home in California to see
Aug 13, 2026
Senate		Do passpassSet your home in California to see
Aug 10, 2026
Senate		Placed on suspense filepassSet your home in California to see
Aug 5, 2026
Senate		Do pass, but first be re-referred to the Committee on [Appropriations]passSet your home in California to see
Jul 1, 2025
Senate		Do pass as amended, but first amend, and re-refer to the Committee on [Local Government]passSet your home in California to see
Jun 3, 2025
House		AB 1294 Haney Assembly Third ReadingpassSet your home in California to see
May 23, 2025
House		Do pass.passSet your home in California to see
Apr 30, 2025
House		Do pass and be re-referred to the Committee on [Appropriations]passSet your home in California to see
Apr 9, 2025
House		Do pass and be re-referred to the Committee on [Local Government] with recommendation: To Consent CalendarpassSet your home in California to see

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