Local taxation: real property transfers.

Assembly Members Wicks and Mark González's proposal would require California cities to conduct and publish detailed impact analyses before implementing real property transfer taxes. The measure mandates that cities examine how proposed transfer taxes would affect affordable housing production, including units created through market-rate developments, as well as overall market-rate housing construction and property tax revenues across local jurisdictions.

Under the legislation, cities must post these analyses on their official websites prior to adopting any real property transfer tax. The required assessment must evaluate impacts on property tax income for cities, counties, special districts, and the state. The bill's findings note that property sales volumes influence tax receipts across jurisdictional boundaries, making this a matter of statewide rather than purely municipal concern. This designation means the requirements would apply to all California cities, including those operating under charters.

The measure adds these analytical requirements to existing state law governing local taxation of real property transfers. Currently, the Documentary Transfer Tax Act permits counties and cities to levy taxes on certain real property transfers, while Proposition 62 generally prohibits local governments from imposing transaction or sales taxes on real property sales, with specific exceptions.