Real property tax: documentary transfer tax: exemptions: Native American tribes.

Assembly Member Macedo's proposal to modify California's property tax and documentary transfer tax provisions would extend welfare exemptions to federally recognized Indian tribes and create new tax relief for tribal land return transactions. The measure amends existing property tax exemptions for land preservation while establishing documentary transfer tax exemptions for qualifying tribal acquisitions.

Under the proposed changes, federally recognized tribes and their wholly owned subsidiaries could qualify for property tax exemptions when land is used exclusively for preserving natural resources or maintaining open spaces. Unlike other organizations, tribes would be exempt from restrictions on large landholdings that currently apply to properties over 30,000 acres in a single county. The exemptions would remain active through the 2027 lien date, requiring properties to operate under qualified conservation management plans that outline preservation goals, identify natural resources and threats, and establish inspection schedules.

The bill also creates a new documentary transfer tax exemption for "tribal land return transactions" - defined as acquisitions transferring land to federally recognized tribes with deed restrictions limiting use to cultural, educational, recreational or conservation purposes. These transfers must convey fee simple ownership and cannot involve federal trust lands. Local tax officials would need to implement these changes immediately upon enactment, with state reimbursement available for any mandated costs as determined by the Commission on State Mandates.