Budget & Economy

Makes technical changes to streamline notice requirements and procedures for community revitalization authorities.

Authorizes the California FAIR Plan Association to issue bonds through the state infrastructure bank to increase its ability to pay insurance claims during the current property insurance crisis. Enables the FAIR Plan to enter into loan agreements and credit lines with financial institutions to ensure adequate funding for catastrophic events. Requires FAIR Plan member insurance companies to pay assessments that cover all bond and loan payment obligations. Takes effect immediately as an urgency measure to address the severe shortage of property insurance coverage in California.

Updates property tax payment rules to credit mailed payments without postmarks based on receipt date. Authorizes tax collectors to reduce minimum auction prices when special assessments are reduced. Establishes electronic payments as received on the transaction completion date if made through approved channels.

Makes technical changes to clarify requirements for horse racing wagering facility agreements.

Ratifies new and amended gaming agreements between California and the Big Sandy Rancheria tribe. Exempts tribal gaming agreements from state environmental review requirements. Takes effect immediately to promote tribal economic development and stability.

Extends the deadline for filing solar energy system tax exclusions to three years after property purchase. Adds public schools to organizations eligible for property tax exemptions and refunds. Allows late-filed solar energy system claims to receive tax benefits starting in the year filed. Requires state reimbursement to local agencies for costs of implementing new tax provisions.

Suspends property tax penalties until April 2026 for specific Los Angeles and Ventura County areas affected by wildfires. Applies only to properties not delinquent before January 2025 and those not paid through impound accounts. Allows property owners to continue installment payment plans without default through April 2026. Takes immediate effect as an urgency measure to provide financial relief to wildfire-impacted residents.

Extends indefinitely the tax provisions allowing nonresident aliens to file without SSN or ITIN numbers. Maintains the group tax filing option for nonresident aliens receiving California income. Excludes from gross income any payments made by agents for nonresidents in group filings. Requires the highest marginal tax rate plus 1% for nonresident aliens filing group returns.

Makes technical changes to employer notification requirements about tax filing assistance programs.

Increases the California State Lottery's immediate prize payment limit from $1,000 to $100,000. Requires the Lottery Commission to adopt regulations for processing larger immediate payments. Maintains existing record-keeping requirements for all immediate prize payments.

Updates required contact information for consumer complaints at money transmission locations. Requires notices in English and the primary language used by the business for advertising. Allows alternative notice formats for money transmission services on websites and mobile apps. Removes an outdated reporting requirement for deferred deposit transactions.

Establishes virtual currency as property that can be claimed by California if unclaimed for three years. Requires businesses to notify virtual currency owners by mail or email 6-12 months before escheatment. Mandates transfer of unclaimed virtual currency to the state's cryptocurrency custodian within 30 days. Allows the State Controller to sell escheated virtual currency through established crypto exchanges.

Establishes a new tax credit covering 50% of medical equipment costs for children with complex conditions. Provides up to $5,000 in annual tax credits per child for prescribed durable medical equipment. Applies to purchases made between 2026 and 2031 for dependents under age 18. Allows unused credit amounts to be carried forward for up to seven years.

Establishes a new tax credit for businesses to offset costs of cleaning up unauthorized encampments and illegal dumping. Covers expenses including waste removal, property repairs, and security measures from 2026 through 2031. Requires businesses to document property conditions and provide detailed cleanup receipts for verification. Authorizes the Franchise Tax Board to implement emergency regulations to prevent fraudulent claims.

Expands property tax exemptions to include land owned by Native American tribes used for conservation purposes. Exempts tribal land return transactions from documentary transfer taxes if used for cultural or conservation purposes. Requires tribes to maintain detailed conservation management plans to qualify for the tax exemptions. Sets expiration of the property tax exemptions for January 1, 2028.

Eliminates the 'good faith effort' standard for film tax credits, requiring production companies to meet diversity goals. Maintains the existing $330 million annual tax credit cap for qualified film and TV productions through 2029-30. Requires productions to submit and achieve diversity workplan goals to receive an additional 4% tax credit. Establishes a Career Pathways Training program funded by 0.5% of approved tax credits to train underserved communities.

Establishes a new certification program for contractors with employee stock ownership plans. Requires state construction contracts to include certified employee-owned contractors starting 2027. Creates a California Employee Ownership Hub to support and promote employee-owned businesses. Mandates independent trustees and employee participation requirements for certified contractors.

Exempts fire departments from paying sales tax on firefighting equipment and vehicles from 2026 through 2030. Requires annual reporting on the number of departments using the tax exemption and total value of exempt sales. Prohibits state reimbursement to local agencies for lost tax revenue from these exemptions.

Extends historic building rehabilitation tax credits through 2031 to preserve cultural landmarks and create housing. Increases tax credit from 25% to 30% for projects that preserve affordable housing or convert buildings to residential use. Requires at least 50% of rehabilitated building space be used for housing to qualify for enhanced tax credits. Maintains annual $50 million cap on total credits while setting aside $10 million for smaller projects and residences.

Requires public retirement systems to align pension limits with federal benefit rates starting January 2026. Mandates annual adjustments to pension compensation based on the Consumer Price Index. Prohibits public employers from offering defined benefits above the new compensation limits. Allows employers to contribute to defined contribution plans for excess compensation within federal limits.

Increases maximum fines for corporate trade violations from $1 million to $100 million. Extends prison terms for individual violators to up to 5 years and raises fines to $1 million. Establishes new civil penalties of up to $1 million per violation for trade conspiracy cases. Allows multiple penalties to be imposed simultaneously for the same trade violation.

Increases the property tax exemption threshold from $10,000 to $50,000 for low-value properties. Requires county assessors to report annually on the number of taxpayers benefiting from the expanded exemption. Takes effect immediately without providing state reimbursement to local agencies for lost tax revenue.

Authorizes the Governor to suspend annual gas tax increases if they burden low-income and middle-class families. Requires the Governor to notify Legislature by January 10 before suspending any scheduled tax increase. Mandates alternative funding proposals to maintain transportation funding if tax increases are suspended.

Excludes tips from California personal income tax and unemployment insurance calculations from 2026 through 2030. Requires employees to report tips to employers monthly through written statements by the 10th of each month. Modifies employer payroll withholding requirements to exclude tips from wage calculations. Mandates the Franchise Tax Board to report on tax returns claiming the tip exemption by December 2036.

Extends the sales tax exemption for zero-emission transit buses purchased by public agencies until January 1, 2028. Applies to various transit vehicle types including articulated, double-decker, and trolley buses over 14,000 pounds. Requires buses to qualify for the state's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. Takes effect immediately to help public agencies transition to zero-emission transit fleets.