SB 789

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. Existing statutory law, the Documentary Transfer Tax Act, authorizes the imposition of a tax by a county or city, as provided, with respect to specified instruments that transfer specified interests in real property. Existing law establishes the California Department of Tax and Fee Administration for the purpose of administering various taxes. This bill would require a person, as defined, that owns commercial property, as defined, in this state to register with the department, as provided. The bill would require every person owning commercial real property in this state to file an information return each year by a date determined by the department, as provided. The bill would require the information return to include specified information, including, among other requirements, whether any buildings or portions of buildings were vacant in the previous calendar year. The bill would authorize extensions of the time for a person to file an information return under specified circumstances, including for good cause. The bill would impose on any person who fails or refuses to timely furnish a return required by its provisions a penalty of $100 per commercial property that the person fails or refuses to timely furnish the information return. The bill would authorize the Director of Finance to make a loan from the General Fund to the department to implement those provisions, and would require any loan to be repaid from revenues from penalties imposed. By authorizing the expenditure of moneys from the General Fund for specified purposes, the bill would create an appropriation. This bill would require the department to collect information from the information returns filed pursuant to its provisions and would require the department to annually post on its internet website data aggregated by ZIP Code, including, among other information, the percentage of commercial properties included in information returns required under this part that were vacant in a calendar year. The bill would repeal these provisions as of January 1, 2031. The bill would also make findings and declarations related to its provisions.