Taxation: information returns: vacant commercial real property.

Senator Menjivar's commercial property vacancy reporting legislation would establish new requirements for owners of commercial real estate in California to submit annual information returns detailing property vacancies. Under the measure, property owners must register with the California Department of Tax and Fee Administration and provide yearly data on vacant properties, including the duration and reasons for vacancies, whether properties are undergoing renovation, and if legal or regulatory barriers prevent occupancy.

The Department would aggregate and publish this data annually by ZIP code, including the percentage of vacant commercial properties, common reasons for extended vacancies over 182 days, and the proportion of properties located in designated blighted areas. Property owners who fail to file timely returns face civil penalties, though the Department may waive these penalties when circumstances beyond an owner's control prevent compliance. The measure includes provisions for filing extensions of up to one month for good cause and up to three months following disasters or states of emergency.

The bill's findings cite concerns about prolonged commercial vacancies undermining local economies and neighborhood stability. The data collection aims to inform potential future policies regarding long-term vacant properties and their relationship to community development. The reporting requirements would remain in effect through January 1, 2031, at which point the provisions would be repealed unless extended by subsequent legislation.