California AB2084: Corporation Tax Law: tax-exempt organizations: revocation of tax-exempt status.

What the bill says

An act to amend Section 23701 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. taxation, to take effect immediately, tax levy Corporation Tax Law: tax-exempt organizations: revocation of tax-exempt status. 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…

From the chaptered text, September 30, 2026:

An act to amend Section 23701 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. taxation, to take effect immediately, tax levy Corporation Tax Law: tax-exempt organizations: revocation of tax-exempt status. 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. MAJORITY NO YES NO YES NO …

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