AB-613 • 2026

Property taxation: assessment: affordable commercial property.

Budget Education Land Small Business Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Mark González
Last action: 2026-02-02
Official status: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date: Not listed

Plain English Breakdown

The official source does not provide exact figures on potential loss of property tax revenue or certainty about state payments to local agencies.

Property Tax Rules for Affordable Commercial Property

AB-613 modifies property tax assessment rules by including certain renewable leases and sets conditions for state reimbursement to local agencies.

What This Bill Does

Adds renewable leases between commercial community ownership entities and community-serving small businesses or nonprofits to the list of restrictions that affect property value for tax purposes.
Requires additional information about any new tax breaks in bills.
Establishes a system where the state might have to pay local agencies if this bill causes them extra costs.
Specifies that the state will not reimburse local agencies for lost property tax revenue from these changes.

Who It Names or Affects

County assessors who set property values
Commercial community ownership entities, small businesses, and nonprofits with certain leases
Local agencies that collect property taxes

Terms To Know

community-serving small business: A local business that provides services to the community.
nonprofit: An organization that does not make a profit and uses its money for its stated goals, like helping people or communities.

Limits and Unknowns

The bill does not specify how much property tax revenue local agencies might lose.
It is unclear if the state will have to pay local agencies extra costs because of this bill.

Bill History

2026-02-02 California Legislative Information
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2026-01-31 California Legislative Information
Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
2025-05-23 California Legislative Information
In committee: Held under submission.
2025-05-21 California Legislative Information
Joint Rule 62(a), file notice suspended. (Page 1627.)
2025-05-21 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-14 California Legislative Information
In committee: Hearing postponed by committee.
2025-05-08 California Legislative Information
Re-referred to Com. on APPR.
2025-05-07 California Legislative Information
Read second time and amended.
2025-05-06 California Legislative Information
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (May 5).
2025-04-28 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-04-24 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-04-07 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2025-04-01 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-03-28 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-03-25 California Legislative Information
Re-referred to Com. on REV. & TAX.
2025-03-24 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
2025-03-24 California Legislative Information
Referred to Com. on REV. & TAX.
2025-02-14 California Legislative Information
From printer. May be heard in committee March 16.
2025-02-13 California Legislative Information
Read first time. To print.

Official Summary Text

AB 613, as amended, Mark González.
Property taxation: assessment: affordable commercial property.
Existing law requires the county assessor to consider, when valuing real property for property taxation purposes, the effect of any enforceable restrictions to which the use of the land may be subjected, including, but not limited to, zoning, recorded contracts with governmental agencies, and various other restrictions imposed by governments.
This bill would add to the above-described enforceable restrictions certain renewable leases between a commercial community ownership entity, as defined, that owns the land and a
community-serving small business or
nonprofit, as defined. By expanding the duties of local tax officials, this bill would impose a state-mandated local program.
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 include additional information required for any bill authorizing a new tax expenditure.
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.

Current Bill Text

Read the full stored bill text

Download Bill PDF