SB 789 (Menjivar D) Vacancy tax: commercial real property.

Current Text: Amended: 3/26/2025
Last Amend: 3/26/2025
Status: 4/2/2025-Re-referred to Com. on REV. & TAX.
Location: 4/2/2025-S. REV. & TAX
Summary: Except as provided, the California Constitution requires that all property be taxed in
proportion to its full value and assessed at the same percentage of fair market value. Current
statutory 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.
Current law establishes the California Department of Tax and Fee Administration for the purpose of
administering various taxes. This bill would impose on and after July 1, 2028, and except as provided,
a vacancy tax on commercial real property, as defined, with parcels that have been vacant, as defined,
exclusive of residential portions, at the rate of $5 per square foot. The bill would require taxes
imposed by its provisions be due and payable on March 15 of each year for the previous calendar year
and would require payment be accompanied by a return filed using electronic media, as specified. The
bill would require that the department administer and collect the tax pursuant to the Fee Collection
Procedures Law, the violation of which is a crime. The bill would also require that a person who
violates these provisions through conduct that includes an intentional misstatement or fraudulent claim
be liable for a civil penalty, as specified.