CAL.Regulation
California denies charitable property-tax exemption to detention facilities
Governor Gavin Newsom signed SB 420 on September 29, 2026. It adds Revenue and Taxation Code section 214.12, providing that property operated as a detention facility is not exempt from property tax as religious, hospital, scientific, or charitable property for purposes of the welfare exemption. The bill is declaratory of existing law.
Enrolled text (California Legislative Information) → · Office of the Governor
Key points
- Property operated as a detention facility cannot claim the welfare exemption as charitable or religious property.California Legislative Information
- Detention facility takes the meaning given in Penal Code section 9500, under new Revenue and Taxation Code section 214.12.California Legislative Information
- The provision is declaratory of existing law.California Legislative Information
- Takes effect January 1, 2027; signed with the September 29 immigration-enforcement package.Office of the Governor
Sources2 articles across 2 outlets
California Legislative Information
Office of the Governor
Filed under
RegulationCal.SB 420 — Detention Facility Welfare Exemption ExclusionImmigrationReal estateTaxFor practitionersFor governance