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Bill

SB 816

Relating to youth.

2025 Regular Session

California SB 816: Provides a temporary property tax exemption for parcels impacted by the Chiquita Canyon elevated-temperature landfill event and exempts microbusinesses from the

Effective date, January 1, 2026.
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Bill Summary · SB 816

Summary — SB 816 / SB0816 (combined document)

Note: The provided document appears to contain two distinct bills from different jurisdictions that were combined in the text. Below are separate, concise summaries for each:

Part A — California: SB 816 (Valladares) — Taxation: microbusiness franchise tax & Chiquita Canyon property tax exemption

Purpose / Intent

Provide (1) a temporary property tax exemption for real property impacted by the Chiquita Canyon elevated-temperature landfill event, and (2) exempt certain microbusinesses from California’s minimum franchise/annual entity tax.

Key provisions

  • Property tax exemption (Revenue & Taxation Code, new Section 243)

    • Exempts real property "impacted by the Chiquita Canyon elevated temperature landfill event" for lien dates on or after January 1, 2025 through and including January 1, 2030.
    • Defines the event as the elevated temperature landfill event beginning May 1, 2022 beneath Chiquita Canyon Landfill (Los Angeles County).
    • Section sunsets and is repealed as of January 1, 2031.
    • Imposes additional duties on county assessors (described as a state-mandated local program).

  • Minimum franchise/annual tax exemptions

    • For taxable years beginning on or after January 1, 2025, exempts corporations incorporated in California that qualify as "microbusinesses" (definition not included in excerpt) from the $800 minimum franchise tax.
    • Extends the same exemption to limited partnerships, limited liability partnerships, and limited liability companies that are microbusinesses for the annual entity tax.

  • Fiscal and reimbursement provisions

    • If the Commission on State Mandates finds the bill creates costs mandated by the state, reimbursement shall follow existing statutory procedures.
    • Notwithstanding existing law, Section 3 explicitly provides that no state appropriation is made and the state will not reimburse local agencies for property tax revenues lost under this bill.
    • The bill declares it is a tax levy and takes effect immediately.

Who is affected

  • Property owners of parcels determined to be "impacted" by the Chiquita Canyon elevated-temperature event (temporary exemption).
  • Small businesses meeting the bill’s "microbusiness" criteria (corporations and pass-through entities organized/doing business in CA) would be relieved from the $800 minimum franchise/annual tax for taxable years beginning on/after 1/1/2025.
  • County assessors (administrative duties) and local governments (potential revenue loss).

Timing / Procedure

  • Property exemption applies to lien dates from Jan 1, 2025 through Jan 1, 2030; repeal effective Jan 1, 2031.
  • Franchise/annual tax exemption applies for taxable years beginning on or after Jan 1, 2025.
  • Bill takes effect immediately as a tax levy.

Fiscal impact (summary from bill text)

  • Direct local property tax revenue losses for affected parcels; bill specifies the state will not reimburse local agencies for those losses.
  • Potential state/local revenue effects from eliminating the $800 minimum tax for qualifying microbusinesses (amounts depend on number of eligible entities and definition of microbusiness).

Part B — Illinois: SB0816 (Don Harmon) — Technical amendment to Legislative Accessibility Act

Purpose / Intent

A narrow, technical amendment to the Legislative Accessibility Act to correct or change the short title’s wording.

Key provision

  • Amends 25 ILCS 175/1 (Section 1) to alter the short title text. The change is technical (the excerpt shows removal of a duplicated word: "the the").

Who is affected

  • No substantive change to policy or program; primarily clerical/technical. No expected fiscal impact.

Procedural status (as provided)

  • Introduced Jan 24, 2025 by Sen. Don Harmon. (Document contains multiple procedural entries; if you need current status, confirm with the relevant legislative clerk or online bill tracker for the Illinois General Assembly.)

If you want, I can:
- Draft a plain‑language summary for affected property owners or small business owners;
- Search for the full bill text to extract the exact "microbusiness" definition and the assessor duties; or
- Check current legislative status and votes in the relevant state’s online bill tracker.

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

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