Budget & Taxes

Existing law, the California Child Day Care Facilities Act, provides for the licensure and regulation of daycare centers and family daycare homes by the State Department of Social Services. Under existing law, the use of a home as a small or large family daycare home is considered a residential use of property and a use by right for the purposes of all local ordinances, including zoning ordinances, and a local jurisdiction is prohibited from imposing a business license, fee, or tax for the privilege of operating a small or large family daycare home. Existing law also exempts small and large family daycare homes from the provisions of the California Environmental Quality Act. This bill would similarly require a daycare center, as defined, when colocated with multifamily housing, to be considered a residential use of property and a use by right, as defined. The bill would similarly prohibit a local jurisdiction from imposing a charge, tax, or fee for a business license, equivalent instrument, or permit for the privilege of operating a daycare center that is colocated with multifamily housing. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Existing statutory law, enacted by Proposition 62, as approved by the voters at the November 4, 1986, statewide general election, prohibits a local government or district from imposing any transaction tax or sales tax on the sale of real property within the city, county, or district, except as provided. The California Constitution authorizes cities organized under a charter to make and enforce all ordinances and regulations in respect to municipal affairs, which supersede inconsistent general laws. Existing law, the Documentary Transfer Tax Act, authorizes the imposition of a tax by a county or city, as provided, with respect to specified instruments that transfer specified interests in real property. This bill would require a legislative body of a city, as specified, before it adopts any transfer tax on the sale of real property, to develop and post on its internet website an analysis that examines, at a minimum, the effect of the proposed transfer tax on, among other things, the production of affordable housing, including affordable housing produced by market-rate housing projects. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.