Property taxation: assessment: affordable commercial property.

Assembly Member Mark González's property tax legislation expands the types of enforceable restrictions that county assessors must consider when determining property values, adding renewable leases between commercial community ownership entities and small nonprofits. The measure requires these leases to meet specific affordability criteria, including terms of three years or more and rental rates below market value, while mandating that at least 70 percent of a property's commercial space be leased to qualifying nonprofits.

The bill establishes a framework for local officials to verify compliance, requiring either the county counsel, city attorney, or director of economic development to confirm that leases meet the statutory requirements. It defines commercial community ownership entities as qualifying nonprofit organizations or their subsidiaries that focus on creating and maintaining property for nonprofits or have received welfare exemptions for providing low-income housing. Eligible nonprofit tenants must have fewer than 20 employees.

To track implementation, the State Board of Equalization must collect and report annual data to the Legislature beginning June 2027 on the total assessed value exempted and the number and types of taxpayers receiving the benefit. While the measure creates new responsibilities for local tax officials, it specifically prohibits state reimbursement to local agencies for any resulting property tax revenue losses. The provisions take immediate effect as a tax levy under the California Constitution.