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Governmental Affairs


The California Association of REALTORS® strongly OPPOSES Assembly Bill 1771, authored by Assemblymember Chris Ward, which attacks private property rights by imposing an unprecedented tax to property owners for simply deciding to sell their property resulting in diminished generational wealth building opportunities, less options to weather unforeseen life events, and limited housing inventory.

AB 1771 seeks to impose up to a tax on the sale of a home if it is sold within a seven-year period. If the home was sold within the first three years, the tax would impose a punitive 25% tax.

AB 1771 seeks to raise taxes on our state’s diverse communities as they are entering the housing market and securing homeownership opportunities – all at a time when the state enjoys a $45.7 billion budget surplus!

Please click here for sample social media posts to share your opposition to AB 1771. Note: this is not a Red Alert. . .yet.

Specifically, AB 1771 would result in:

  • increased taxes on homeowners;
  • higher prices due to a reduced supply of homes as investors hold on to properties and homeowners are trapped in their homes; and,
  • limited wealth-building opportunities for California’s new and more diverse population of homeowners.

The proposed timeline and amount of additional capital gains tax is as follows for homes sold within a certain number of years from the initial purchase:

  • <3 years: 25%
  • 3-4 years: 20%
  • 4-5 years: 15%
  • 5-6 years: 10%
  • 6-7 years: 5%
  • >7 years: NONE


AB 1771 also does nothing to ensure that first-time or other home buyers are guaranteed access to homes, nor does it create more housing opportunities. Rather, the bill will cause unintended consequences for the market by reducing the number of homes available for sale – further depressing California’s ownership housing supply.

In a time of record surplus, the state should not punish property owners simply for deciding to move due to unforeseen life events. C.A.R. strongly opposes this bill as it drives yet another wedge into bridging the wealth gap by reducing the opportunities for wealth creation and housing security.




Fair Housing (  Find more information about Fair Housing, C.A.R.’s advocacy on behalf of underserved communities and tools to help California REALTORS® support the homeownership needs of all communities.




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Election Dates 2022

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Genereal Election November 8, 2022 

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