Taxation: information returns: vacant commercial real property.

The entire vacancy tax was eliminated. The previous version imposed a $5 per square foot tax on commercial real property vacant 182 or more days per year, effective July 1, 2028, with exemptions for active renovation, legal/regulatory barriers, and natural disasters. All of this is gone.

The bill's vote requirement changed from two-thirds majority (required for tax increases under Article XIIIA) to simple majority, reflecting that it no longer imposes a tax.

Revenue from the vacancy tax that was to be deposited into the California Dream for All Fund (prioritizing first-time home buyer assistance) was removed along with the tax itself.

A new provision authorizes the Director of Finance to make a loan from the General Fund to the department to implement the information reporting requirements, with repayment required from penalties collected. This creates a new appropriation.

The application of the Fee Collection Procedures Law (which made violations a crime) and the 75% civil penalty for intentional misstatement or fraudulent claims were both removed, eliminating the state-mandated local program finding.

A specific civil penalty of $100 per commercial property was set for failing or refusing to timely file an information return. The previous version left the penalty amount blank.

The definition of 'vacant' was simplified from requiring 182 or more days of vacancy in a calendar year (on or after January 1, 2028) to simply meaning property not subject to a valid lease or actively used for commercial purposes, with no minimum duration threshold.

The term 'owner' was replaced throughout with 'person,' defined to include individuals, groups, LLCs, trusts, or entities holding legal or equitable title, while excluding government entities.

The document was reformatted from a traditional legislative print layout with line numbers and page headers into a web page format that includes navigation menus (home, accessibility, FAQ, feedback, sitemap, login), a quick search box, bill information panels, and share/track links. No changes were made to the substantive bill language.

Entirely new Part 6.8 (Sections 11950-11958) added to Division 2 of the Revenue and Taxation Code, creating a Commercial Real Property Vacancy Tax that did not exist in the introduced version.

The bill's scope expanded from a nonsubstantive technical amendment to Section 23101.5 (corporate 'doing business' definition) to a major new tax policy. The original cleanup is now a secondary provision at the end of the bill.

Imposes a $5 per square foot tax on commercial real property vacant for 182 or more days (consecutive or nonconsecutive) in a calendar year, effective July 1, 2028. Residential portions are excluded.

Owners subject to the tax must register with the California Department of Tax and Fee Administration using electronic media. Returns must be filed electronically and include vacancy status, square footage, applicable exemptions, and supporting documentation.

Three exemptions from the vacancy tax: (1) active renovation with an approved building permit and at least 90 consecutive days of ongoing work, (2) legal or regulatory barriers such as litigation, environmental reviews, or permitting delays, and (3) properties affected by a natural disaster deemed uninhabitable by state or local authorities.

All net revenues (after refunds and administrative costs) are deposited into the California Dream for All Fund, with allocations prioritized for first-time home buyer assistance. This constitutes an appropriation to a continuously appropriated fund.

Tax effective July 1, 2028; payments due March 15 each year for the prior calendar year; first economic impact evaluation due by January 1, 2033, then every five years thereafter.

Civil penalty of up to 75 percent of taxes owed for violations involving intentional misstatement or fraudulent claims. Administration and collection handled under the Fee Collection Procedures Law, which makes violations a crime.

Vote requirement changed from majority to two-thirds (due to the tax increase triggering Article XIIIA, Section 3). Appropriation and fiscal committee designations changed from 'no' to 'yes.' State-mandated local program changed from 'no' to 'yes' due to expansion of the Fee Collection Procedures Law.