SB816 - Property taxation: exemptions: Chiquita Canyon elevated temperature landfill event.

Amended IN Senate June 16, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 816 Introduced by Senator Valladares February 21, 2025 An act to amend Sections 17935, 17941, 17948, and 23153 of add Section 243 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST SB 816, as amended, Valladares. Taxation: corporations: minimum franchise tax: limited liability companies: annual tax: microbusinesses. Property taxation: exemptions: Chiquita Canyon elevated temperature landfill event. The California Constitution declares that all property is taxable and establishes or authorizes various exemptions from tax for real property, including, among others, a homeowners’ exemption in the amount of $7,000 of the full value of a dwelling unless the dwelling receives another real property exemption. This bill, for lien dates occurring on or after January 1, 2025, to, and including, January 1, 2030, would statutorily exempt from property taxation real property impacted by the Chiquita Canyon elevated temperature landfill event, as defined. By imposing additional duties on county assessors, 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. Existing law imposes an annual minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law also imposes an annual tax in an amount equal to the minimum franchise tax on every limited partnership, limited liability partnership, and limited liability company doing business in this state, as specified. This bill, for taxable years beginning on or after January 1, 2025, would exempt corporations that are microbusinesses, as specified, incorporated in this state from the minimum franchise tax. The bill would also exempt a limited partnership, limited liability partnership, and limited liability company that are microbusinesses, as specified, from the annual tax. This bill would take effect immediately as a tax levy. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 243 is added to the Revenue and Taxation Code, to read: 243. (a) For lien dates occurring on or after January 1, 2025, to, and including, January 1, 2030, real property impacted by the Chiquita Canyon elevated temperature landfill event is exempt from property taxation. (b) For purposes of this section, “Chiquita Canyon elevated temperature landfill event” means the elevated temperature landfill event, beginning on May 1, 2022, that occurred beneath the Chiquita Canyon Landfill in the County of Los Angeles, California. (c) This section shall remain in effect only until January 1, 2031, and as of that date is repealed. SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.