Bill > AB2084

This bill modifies the process for revoking the tax-exempt status of organizations in California. Currently, if an organization's federal tax-exempt status is revoked, its state tax-exempt status is automatically revoked by the Franchise Tax Board (FTB). However, this bill requires the FTB to first send a written notice of its intent to revoke the state exemption. Upon receiving this notice, the organization will have 90 days to "cure" the issue by either providing proof that the federal revocation was a mistake or has been reinstated, or by submitting a new application for state tax exemption that is independent of federal law. If the organization takes action within this 90-day period, its state exemption will remain active while the FTB reviews the submitted information. If the organization fails to act within 90 days or if its submission is denied, the FTB will then revoke the state exemption. This change provides a grace period and an opportunity for organizations to rectify issues before losing their state tax-exempt status.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2084