Plain English Breakdown
The bill declares itself an urgency statute taking effect immediately, but the tax limits specifically begin on January 1, 2027.
Limits on Local Transfer Taxes and a New Housing Bond
This law sets a maximum rate for local taxes on property sales, creates tax breaks for homes rebuilt after disasters, and proposes $10 billion in bonds for affordable housing if voters approve it.
What This Bill Does
- Limits the total transfer tax that cities or counties can charge to no more than 1.5% of a home's sale price starting January 1, 2027.
- Stops local governments from charging a transfer tax on the first sale of single-family homes rebuilt within five years after a natural disaster destroys them.
- Creates the Affordable Housing Bond Act of 2026 to authorize $10 billion in state bonds if voters approve it.
- Sends the bond measure to California voters for approval at the June 2, 2026 primary election.
- Requires that money from these new bonds fund rental housing and home ownership programs like CalHome and farmworker housing grants.
Who It Names or Affects
- Cities, counties, charter cities, and city-counties in California
- People buying or selling real property interests
- Homeowners rebuilding single-family homes after natural disasters
- Recipients of state-funded affordable rental and home ownership programs
Terms To Know
- Transfer tax
- A fee charged by a city or county when real property is sold or transferred.
- Charter city
- A city with its own special rules, which this law still applies to because it addresses statewide concerns.
- State General Obligation Bond Law
- The state rule that allows the government to borrow money by selling bonds for specific projects like housing.
Limits and Unknowns
- The $10 billion in new funding only happens if voters approve it at the June 2, 2026 election.
- Reimbursement from the state to local agencies depends on whether the Commission on State Mandates determines that costs are mandated by this bill.