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California 20252026

AB 2084

Corporation Tax Law: tax-exempt organizations: revocation of tax-exempt status.

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Source: Open States / PluralLatest available (refresh delayed). Last refreshed: 2026-10-19 09:12:31 UTC.

Official record

Measure details

Jurisdiction
California
Session
20252026
Chamber
lower
Classification
bill
Subjects
CorporationTaxLaw, revocationoftax-exemptstatus, tax-exemptorganizations
Introduced / first action
2026-02-18 00:00:00

Source-supplied abstracts

Existing law, the Corporation Tax Law, exempts organizations that are organized and operated for nonprofit purposes, as specified, from taxes imposed by that law if the Franchise Tax Board issues a determination exempting the organization from tax, except as provided. To receive a determination of exemption from the board, existing law requires the organization to either submit an application for exemption or to submit documentation of exemption from federal income tax law, as provided. For organizations that submit documentation of their federal exemption, existing law requires the board to suspend or revoke, as applicable, an organization's state exemption upon notification that the organization's federal exemption is suspended or revoked. This bill would instead authorize the board, in its discretion, to retain the organization's tax-exempt status for state income tax purposes if it determines this suspension or revocation occurred for reasons other than fraud, intentional misrepresentation, misuse or diversion of organizational funds, failure to file necessary returns or reports, or other breaches of organizational reporting or governance requirements. This bill would take effect immediately as a tax levy.

Sponsors

Source-supplied history

Actions

  1. Chaptered by Secretary of State - Chapter 921, Statutes of 2026.

    became-law

  2. Approved by the Governor.

    executive-signature

  3. Enrolled and presented to the Governor at 4 p.m.

    executive-receipt

  4. In Assembly. Ordered to Engrossing and Enrolling.

    committee-passage

  5. Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 10.).

    passage, reading-1, reading-3

  6. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  7. From committee: Do pass. (Ayes 5. Noes 2.) (August 13).

    committee-passage, committee-passage-favorable

  8. In committee: Referred to APPR. suspense file.

    referral-committee

  9. From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  10. Referred to Com. on REV. & TAX.

    referral-committee

  11. In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1, referral-committee

  12. Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 16. Page 5224.)

    passage, reading-1, reading-3

  13. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  14. From committee: Do pass. (Ayes 11. Noes 3.) (May 14).

    committee-passage, committee-passage-favorable

  15. Joint Rule 62(a), file notice suspended. (Page 5030.)

  16. In committee: Set, first hearing. Referred to APPR. suspense file.

    referral-committee

  17. From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (April 27). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  18. Re-referred to Com. on REV. & TAX.

    referral-committee

  19. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  20. In committee: Set, second hearing. Referred to REV. & TAX. suspense file.

    referral-committee

  21. In committee: Set, first hearing. Hearing canceled at the request of author.

  22. Re-referred to Com. on REV. & TAX.

    referral-committee

  23. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  24. Referred to Com. on REV. & TAX.

    referral-committee

  25. From printer. May be heard in committee March 21.

  26. Read first time. To print.

    reading-1

When supplied by the API

Related measures

No resolvable related measure is supplied.