06/24/2026
RED ALERT: !!!!
This affects all transfers of ownership on residential properties.
C.A.R. opposes AB 736 (Gonzalez), a bill that writes a transfer tax ceiling into state law for the first time at up to 3% of a property's sale price, nearly 27 times higher than the .11% limit that currently applies to general law cities. A cap sets these high functions as a target, not a ceiling, giving cities across the states a new, state-blessed number to climb toward. On a median-priced home of $930,260, the new ceiling would let a city charge a transfer tax of up to $27,907, compared with no more than $1,023.29 under the current general law limit. The bill singles out homeowners for the worst treatment: commercial and multi-family properties, regardless of value, would be protected by the cap, resulting in lowered taxes in cities like Los Angeles, while single-family homes sold for more than $5.4 million are the one category left with no ceiling at all, exposed to unlimited local transfer tax rates.
C.A.R. opposes AB 736 because it incentivizes raising the tax burden on property transfers, increasing the cost of homeownership and housing generally, while discouraging the sale of higher-priced homes in a manner inconsistent with the state's goal of increasing the supply of housing.
Both the Senate and the Assembly will vote on this bill this Thursday, June 25. We need you to act quickly to stop it. Contact your assigned legislators immediately.
Please call your legislators today to oppose AB 736r