The commercial real estate industry is sponsoring AB 1435, the Business Clean Up Relief Act of 2025. Introduced by Assemblymember Stephanie Nguyen (D-Elk Grove), AB 1435 will provide California businesses with a five-year tax credit (2026-2030) covering 100% of qualifying cleanup expenses related to unauthorized encampments and illegal dumping. 

With businesses across California struggling with the financial burden of maintaining clean and secure properties, AB 1435 offers direct relief by helping to alleviate costs for waste removal, security improvements, and property repairs. 

The bill has been assigned to the Assembly Committee on Revenue and Taxation for review.

BOMA International recently released a study, The Hidden Costs of Transfer Taxes, which found that transfer taxes disproportionately burden commercial properties due to their higher values, often generating less revenue than expected while reducing sales, lowering future property tax collections, and hindering economic growth by discouraging property repurposing.

Earlier this month, Mayor Karen Bass announced that her administration and the L.A. City Council are considering suspending Measure ULA, the city’s controversial real estate transfer tax, to aid in rebuilding areas impacted by recent wildfires.

We commend Mayor Bass and the L.A. City Council for considering a pause on Measure ULA, which has severely hindered development and had widespread negative effects on the market.

A recent Sacramento Bee editorial highlights an upcoming test for California lawmakers as they navigate the implementation of Proposition 36, which strengthened penalties for certain theft and drug crimes. A key challenge is the lack of funding for parts of the initiative that faced opposition from Governor Newsom and other state leaders.

BOMA California actively advocated for the passage of Proposition 36 and remains committed to its successful implementation. We appreciate the Legislature's ongoing efforts to ensure the measure is effectively carried out.

BOMA California partner California Commission for Disability Access is hosting a listening forum, Disability Compliance at Places of Business to Improve Access for All, an in-person only event that amplifies the voice of customers to help small business owners enhance accessibility. 

The event will take place on March 26th from 3 to 5 p.m. at the Westin San Francisco Airport Hotel. Don’t miss this opportunity to engage in meaningful discussions and help shape a more accessible future for all.