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Bill

AB 698

Local taxation: real property transfers.

2025-2026 Regular Session Introduced by Mark González and 1 co-sponsor

AB 698 authorizes California local governments to tax real property transfers, generating revenue for affordable housing and homelessness programs while potentially increasing home purchase costs.

In Senate. Read first time. To Com. on RLS. for assignment.
#localtaxation #realpropertytransfers
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Bill Summary · AB 698

Legislative bill overview

AB 698 authorizes local governments in California to impose a tax on real property transfers (sales of land and buildings) and directs revenue toward affordable housing and homelessness programs. The bill passed the Assembly unanimously and is currently in the Senate for committee review.

Why is this important

Real property transfer taxes could generate significant local revenue for housing initiatives in high-cost California markets, but would add transaction costs to home purchases and property sales. This directly affects affordability, local government budgets, and real estate market dynamics across the state.

Potential points of contention

  • Impact on housing affordability: Transfer taxes increase buying costs, potentially pricing out first-time homebuyers and renters seeking to purchase property
  • Economic competitiveness: Local taxes on property transfers may drive real estate transactions to neighboring jurisdictions without such taxes
  • Revenue predictability: Property transfer volumes fluctuate with market cycles, creating unstable funding streams for housing programs that require consistent budgeting
  • Exemptions and equity: Questions about which transfers are taxed (primary residences vs. investment properties) and how to fairly distribute burden

Compiled from official sources — confirm details with the bill’s official record.

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