SB-789
Budget & Economy

Taxation: information returns: vacant commercial real property.

Introduced
CA
2025-2026 Regular Session
0
1
Track

Key Takeaways

  • Requires commercial property owners to file annual reports on vacant buildings starting in 2025.
  • Imposes a $100 penalty per property for failing to submit required vacancy information.
  • Mandates the state tax department to publish annual vacancy data by ZIP code.
  • Establishes a temporary program that automatically expires on January 1, 2031.

Summary

Senator Menjivar's commercial property vacancy reporting legislation would require California commercial property owners to register with the Department of Tax and Fee Administration and submit annual information returns detailing property vacancies. The returns must specify which buildings were vacant in the previous calendar year, the duration of vacancies, reasons for non-occupancy, and whether factors like active renovation, legal barriers, or natural disasters contributed to the vacant status.

The Department would aggregate this data by ZIP code and publish annual reports on its website showing vacancy rates, common reasons for extended vacancies over 182 days, and the prevalence of various contributing conditions. Property owners who fail to file timely returns face penalties of $100 per property, though these may be waived for circumstances beyond their control. The Department can grant filing extensions of up to one month for good cause, or three months in cases of disasters or state emergencies.

To implement these requirements, the Director of Finance may authorize General Fund loans to the Department, to be repaid through collected penalties. The reporting system would remain in place through January 1, 2031, at which point these provisions would be repealed. The bill's findings note that this data collection aims to inform potential future policies addressing commercial property vacancies and their effects on local economies and tax revenues.

Key Dates

Next Step
Referred to the Senate Standing Committee on Appropriations
Next Step
Senate Committee
Referred to the Senate Standing Committee on Appropriations
Hearing scheduled for , 1021 O Street, Room 2200
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Senate Appropriations Hearing
Senate Revenue and Taxation Hearing
Senate Committee
Senate Revenue and Taxation Hearing
Senate Revenue and Taxation Hearing
Introduced. To Com. on RLS. for assignment. To print.
Senate Floor
Introduced. To Com. on RLS. for assignment. To print.
Introduced. To Com. on RLS. for assignment. To print.

Contacts

Profile
Anna CaballeroD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Megan DahleR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Kelly SeyartoR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Caroline MenjivarD
Senator
Bill Author
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Anna CaballeroD
Senator
Committee Member
Profile
Tim GraysonD
Senator
Committee Member
Profile
Megan DahleR
Senator
Committee Member
Profile
Kelly SeyartoR
Senator
Committee Member
Profile
Caroline MenjivarD
Senator
Bill Author
Profile
Aisha WahabD
Senator
Committee Member
Profile
Christopher CabaldonD
Senator
Committee Member
Profile
Laura RichardsonD
Senator
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Caroline Menjivar
Caroline MenjivarD
California State Senator
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)

Latest Voting History

May 12, 2025
PASS
Senate Committee
Senate Appropriations Hearing
AyesNoesNVRTotalResult
7007PASS

Key Takeaways

  • Requires commercial property owners to file annual reports on vacant buildings starting in 2025.
  • Imposes a $100 penalty per property for failing to submit required vacancy information.
  • Mandates the state tax department to publish annual vacancy data by ZIP code.
  • Establishes a temporary program that automatically expires on January 1, 2031.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Caroline Menjivar
Caroline MenjivarD
California State Senator

Summary

Senator Menjivar's commercial property vacancy reporting legislation would require California commercial property owners to register with the Department of Tax and Fee Administration and submit annual information returns detailing property vacancies. The returns must specify which buildings were vacant in the previous calendar year, the duration of vacancies, reasons for non-occupancy, and whether factors like active renovation, legal barriers, or natural disasters contributed to the vacant status.

The Department would aggregate this data by ZIP code and publish annual reports on its website showing vacancy rates, common reasons for extended vacancies over 182 days, and the prevalence of various contributing conditions. Property owners who fail to file timely returns face penalties of $100 per property, though these may be waived for circumstances beyond their control. The Department can grant filing extensions of up to one month for good cause, or three months in cases of disasters or state emergencies.

To implement these requirements, the Director of Finance may authorize General Fund loans to the Department, to be repaid through collected penalties. The reporting system would remain in place through January 1, 2031, at which point these provisions would be repealed. The bill's findings note that this data collection aims to inform potential future policies addressing commercial property vacancies and their effects on local economies and tax revenues.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)

Key Dates

Next Step
Referred to the Senate Standing Committee on Appropriations
Next Step
Senate Committee
Referred to the Senate Standing Committee on Appropriations
Hearing scheduled for , 1021 O Street, Room 2200
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Senate Appropriations Hearing
Senate Revenue and Taxation Hearing
Senate Committee
Senate Revenue and Taxation Hearing
Senate Revenue and Taxation Hearing
Introduced. To Com. on RLS. for assignment. To print.
Senate Floor
Introduced. To Com. on RLS. for assignment. To print.
Introduced. To Com. on RLS. for assignment. To print.

Latest Voting History

May 12, 2025
PASS
Senate Committee
Senate Appropriations Hearing
AyesNoesNVRTotalResult
7007PASS

Contacts

Profile
Anna CaballeroD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Megan DahleR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Kelly SeyartoR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Caroline MenjivarD
Senator
Bill Author
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Anna CaballeroD
Senator
Committee Member
Profile
Tim GraysonD
Senator
Committee Member
Profile
Megan DahleR
Senator
Committee Member
Profile
Kelly SeyartoR
Senator
Committee Member
Profile
Caroline MenjivarD
Senator
Bill Author
Profile
Aisha WahabD
Senator
Committee Member
Profile
Christopher CabaldonD
Senator
Committee Member
Profile
Laura RichardsonD
Senator
Committee Member