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Property tax: welfare exemption: detention facilities.

CA · Legislation · 2025 · SB420

Jerry McNerney(D)
Steve Padilla(D)
Tom Umberg(D)
Mike Gipson(D)
Jesse Arreguin(D)
Juan Carrillo(D)
Michelle Rodriguez(D)
Liz Ortega(D)
Sasha Renee Perez(D)
Sharon Quirk-Silva(D)
Susan Rubio(D)
Legislation
Engrossed

Record updated Sep 29, 2026

Summary

An act to add Section 214.12 to the Revenue and Taxation Code, relating to taxation.

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Timeline

2026-09-29

Approved by the Governor.

2026-09-29

Chaptered by Secretary of State. Chapter 750, Statutes of 2026.

2026-09-04

Enrolled and presented to the Governor at 2 p.m.

2026-08-28

S

Assembly amendments concurred in. (Ayes 32. Noes 0.) Ordered to engrossing and enrolling.

2026-08-27

S

From committee: That the Assembly amendments be concurred in. (Ayes 4. Noes 0.)

2026-08-26

S

Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(d).

2026-08-26

S

From committee: Be re-referred to Com. on REV. & TAX. pursuant to Senate Rule 29.10(d). (Ayes 5. Noes 0.) Re-referred to Com. on REV. & TAX.

2026-08-25

A

Read third time. Passed. (Ayes 62. Noes 10. Page 6524.) Ordered to the Senate.

Bill Text

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Enrolled  August 31, 2026
Passed  IN  Senate  August 28, 2026
Passed  IN  Assembly  August 25, 2026
Amended  IN  Assembly  July 01, 2026
Amended  IN  Assembly  June 03, 2026
Amended  IN  Senate  May 23, 2025
Amended  IN  Senate  March 26, 2025

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill
No. 420

Introduced by Senators Padilla, McNerney, and Umberg
(Principal coauthor: Assembly Member Gipson)
(Coauthors: Senators Arreguín, Pérez, and Rubio)
(Coauthors: Assembly Members Carrillo, Ortega, Quirk-Silva, and Michelle Rodriguez)

February 18, 2025

An act to add Section 214.12 to the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


SB 420, Padilla. Property tax: welfare exemption: detention facilities.
The California Constitution authorizes the Legislature to exempt from taxation, in whole or in part, property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity. Pursuant to that authority, existing law provides for a welfare exemption under which property used exclusively for an exempt purpose and owned and operated by specified entities, including foundations, limited liability companies, or corporations meeting certain statutory requirements is exempt from taxation.
This bill would specify that for the purposes of the welfare exemption provisions above, “property used exclusively for religious, hospital, scientific, or charitable purposes” shall not include property, or any portion thereof, operated as a detention facility, as defined. The bill would declare that the above provision is declarative of, and not a change in, existing law.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 214.12 is added to the Revenue and Taxation Code, to read:

214.12.
 (a) For purposes of Section 214, “property used exclusively for religious, hospital, scientific, or charitable purposes” shall not include property, or any portion thereof, operated as a detention facility.
(b) For purposes of this section, “detention facility” shall have the same meaning as is provided in Section 9500 of the Penal Code.
(c) The Legislature finds and declares that this section does not constitute a change in, but is declaratory of, existing law.

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