AB 2089 California Assembly · 2025-2026 Regular Session

Property taxation: welfare exemption.

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. The tax imposed pursuant to these provisions is commonly referred to as an ad valorem property tax. Existing property tax law, in accordance with the California Constitution, 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 any of certain qualifying criteria are met, including that the owner of the property receives low-income housing tax credits pursuant to specified provisions of the Internal Revenue Code. Under existing property tax law, property that meets these requirements that is used exclusively for rental housing and related facilities is entitled to a partial exemption, equal to 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, in any year that any of certain criteria apply. Existing property tax law, for the 2018–19 fiscal year through the 2027–28 fiscal year, in the case of an owner of property who is eligible for the federal low-income housing tax credit, requires that a unit continue to be treated as occupied by a lower income household if the occupants were lower income households on the lien date in the fiscal year in which occupancy of the unit commenced and the unit continues to be rent restricted, notwithstanding an increase in the income of the occupants of the unit to 140% of area median income. This bill would extend the above-described provision through the 2028–29 fiscal year. Existing property tax law establishes procedures for claiming the welfare exemption, including requiring the annual filing of a claim for the exemption with the county assessor, as provided. This bill would authorize the county assessor to accept electronic signatures for materials necessary to claim, maintain, or otherwise receive the welfare exemption. The bill would require the county board of supervisors to, if necessary and in collaboration with the county assessor, adopt any ordinances or resolutions to implement the electronic portal and submission authorization. The bill would require, as provided, every county to release all forms related to the annual recertification of tenant income necessary to receive the welfare exemption by November 15 of each calendar year prior to the due date for the forms. By imposing additional duties on counties, the bill would impose a state-mandated local program. This bill would incorporate additional changes to Section 214 of the Revenue and Taxation Code proposed by Assembly Bill 1294 to be operative only if this bill and Assembly Bill 1294 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, 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.

Issues: ✓ Budget & Taxes

Bill status passed both 4 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Aug 2026

Assembly Passage

May 2026

Senate Passage

Aug 2026

Governor

Introduced Feb 18, 2026 Last action Aug 26, 2026

Maddy AI version diff · 6 comparisons

What changed between versions

08/30/26 - Enrolled → AB2089 · 2 edits

MINOR

This diff reflects a change in document format rather than a change in law. The Enrolled version contains the formal legislative document (chapter heading, legislative counsel's digest, page numbering, and enactment language), while the new version is a web page rendering of the same bill text with navigation menus, search tools, sidebar links, and status information added. No substantive policy provisions were altered.

TECHNICAL

Removed formal legislative document elements including the chapter heading, legislative counsel's digest, page numbers, and the enactment preamble ('The people of the State of California do enact as follows').

Added web page navigation elements (home, accessibility, FAQ, sitemap, login), search functionality (bill number and keyword search), sidebar links (votes, history, bill analysis, compare versions, status), version history listing, and bill status metadata (enrolled date, passage dates in both chambers).

04/22/26 - Amended Assembly → 06/16/26 - Amended Senate · 5 edits · Jun 16, 2026

MODERATE

The Senate amendment to AB 2089 removed two major provisions from the Assembly version: (1) a new penalty protection for property owners who lost their welfare exemption due to change in control or ownership, and (2) a requirement that county assessors post documentation requirements on their websites. The Senate also changed electronic signature acceptance from mandatory to permissive, and extended the low-income housing tax credit occupancy provision by one year (through fiscal year 2028-29 instead of 2027-28).

Scope change

The bill's scope narrowed significantly. The Assembly version addressed three areas: electronic signatures, website transparency for exemption documentation, and delinquency penalty protections. The Senate version dropped the website transparency requirement and the entire delinquency penalty protection, keeping only the electronic signature authorization (now permissive), the county form release deadline, and adding a one-year extension of the LIHTC occupancy rule.

ENFORCEMENT

Removed the entire amendment to Section 4985.05 that would have protected property owners from interest, penalties, and collection actions on delinquent property taxes if they had filed for a welfare exemption and were either in construction or had lost the exemption due to a change in control, ownership, or replacement of a nonprofit managing general partner. The Assembly version applied this protection to installments due from December 10, 2025 through April 10, 2031 (construction) and from December 10, 2027 (change in control/ownership).

REQUIREMENT

Removed new Section 259.16 that would have required county assessors to post documentation requirements for the partial welfare exemption on their internet websites, including information about variations by property type, and to update that information within seven days of any changes.

Changed Section 254.4 from requiring county assessors to accept electronic signatures (shall) to authorizing them to do so (may), making electronic signature acceptance permissive rather than mandatory for counties.

TIMELINE

Extended the provision allowing units in low-income housing tax credit properties to continue being treated as occupied by lower income households even if occupant income rises to 140 percent of area median income, from fiscal year 2027-28 to fiscal year 2028-29, a one-year extension.

SCOPE

The bill's scope narrowed: it no longer amends Section 4985.05 (delinquency penalties) and no longer adds Section 259.16 (website documentation). It now only amends Section 214 (to extend the LIHTC provision) and adds Sections 254.4 and 259.17.

04/06/26 - Amended Assembly → 04/22/26 - Amended Assembly · 4 edits · Apr 22, 2026

MODERATE

The April 22 amendment makes three substantive policy changes to AB 2089: it converts the county assessor's electronic signature requirement from mandatory to permissive, adds a held-harmless provision protecting counties from liability when state-level delays prevent timely form release, and removes language that would have extended the property tax delinquency benefit indefinitely. These changes reduce the bill's mandates on local governments and narrow the duration of the tax relief provision.

Scope change

The bill's scope narrowed in two ways: counties are no longer required to accept electronic signatures (now optional), and the property tax delinquency benefit lost its indefinite extension, reverting to specific sunset dates.

REQUIREMENT

Section 254.4(a) changed from 'The county assessor shall accept electronic signatures' to 'The county assessor may accept electronic signatures,' converting a mandatory requirement into permissive authorization. Counties now have discretion rather than an obligation to accept e-signatures for welfare exemption claims.

ENFORCEMENT

A new sentence was added to Section 259.17 providing that a county shall be held harmless from liability for failing to release annual recertification forms by November 15 if the failure is caused by a delay by the State Board of Equalization or other state entity in publishing relevant forms.

TIMELINE

The digest language stating 'This bill would extend the benefit described above indefinitely' was removed. The statutory text retains specific end dates (April 10, 2031 for the first category and December 10, 2027 start date for the second), meaning the delinquency protection is no longer being extended without a fixed expiration.

TECHNICAL

Section numbering was reorganized in the amendment markup, with some sections renumbered. The digest title was also shortened from 'delinquent payments: interest and filing of claims: delinquency penalties' to 'filing of claims: delinquency penalties.'

02/18/26 - Introduced → 04/06/26 - Amended Assembly · 5 edits · Apr 6, 2026

MODERATE

The amended version of AB 2089 expands the bill's scope beyond its original focus on delinquent property tax penalties for affordable housing properties in construction. The amendment adds three new sections to the Revenue and Taxation Code that impose administrative duties on county assessors: accepting electronic signatures for welfare exemption claims, publishing documentation requirements online with a 7-day update deadline, and releasing tenant income recertification forms by November 15 each year. These changes make it easier for property owners to claim and maintain the partial welfare tax exemption for lower-income housing.

REQUIREMENT

New Section 254.4 requires county assessors to accept electronic signatures for all materials needed to claim, maintain, or receive the welfare exemption, including annual income verification. County boards of supervisors must adopt implementing ordinances if necessary.

New Section 259.16 requires county assessors to publish documentation requirements for the partial welfare exemption (related to lower income household certification) on their internet website, including information about variations by property type, and to update that information within 7 days of any changes.

TIMELINE

New Section 259.17 requires every county to release all forms related to annual recertification of tenant income by November 15 of each calendar year, prior to the due date for those forms.

SCOPE

The bill's stated purpose expanded from amending only Section 4985.05 (delinquent tax penalties) to also adding Sections 254.4, 259.16, and 259.17, broadening the bill from a purely financial relief measure to one that also addresses administrative procedures for claiming the welfare exemption.

TECHNICAL

The core delinquent tax penalty provision (Section 4985.05) was renumbered from Section 1 to Section 4 of the bill to accommodate the three new sections, but its substantive content remains essentially unchanged.

Floor votes · Senate Aug 26, 2026 · Assembly May 18, 2026

How they voted

39–0

Passed · 1 other

Total votes 40

Aug 26, 2026

D Democratic30

30 Yea

100% Yea

R Republican10

9 Yea 1

90% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 26, 2026

Lower · Passed

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0.).

lower

Aug 26, 2026

Introduced

In Assembly. Concurrence in Senate amendments pending.

lower

Aug 26, 2026

Upper · Passed

Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).

upper

Aug 21, 2026

Upper · Passed

Read third time and amended. Ordered to second reading.

upper

Aug 3, 2026

Upper · Passed

From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

upper

Jun 24, 2026

Upper · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.

upper

Jun 16, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on REV. & TAX.

upper

May 27, 2026

Committee

Referred to Com. on REV. & TAX.

upper

May 18, 2026

Lower · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 72. Noes 0. Page 5135.)

lower

May 13, 2026

Lower · Passed

From committee: Do pass. (Ayes 15. Noes 0.) (May 13).

lower

Apr 23, 2026

Committee

Re-referred to Com. on APPR.

lower

Apr 22, 2026

Lower · Passed

Read second time and amended.

lower

Apr 21, 2026

Introduced

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 20).

lower

Apr 20, 2026

Committee

In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

lower

Apr 15, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 12. Noes 0.) (April 15). Re-referred to Com. on REV. & TAX.

lower

Apr 7, 2026

Committee

Re-referred to Com. on H. & C.D.

lower

Apr 6, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.

lower

Mar 12, 2026

Committee

Re-referred to Coms. on H. & C.D. and REV. & TAX. pursuant to Assembly Rule 96.

lower

Mar 9, 2026

Committee

Referred to Coms. on REV. & TAX. and H. & C.D.

lower

Feb 19, 2026

Lower · Passed

From printer. May be heard in committee March 21.

lower

1 primary · 0 co-sponsors