SB 789 (Menjivar D) Taxation: information returns: vacant commercial real property.

Current Text: Amended: 4/30/2025
Last Amend: 4/30/2025
Status: 5/23/2025-May 23 hearing: Held in committee and under submission.
Location: 5/12/2025-S. APPR. SUSPENSE FILE
Summary: Current 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. Current 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.