Assembly Bill (AB) 130:
California’s New Tax on Housing
Repeal the NEW TAX on Housing
AB 130 makes important housing reforms, but one provision buried deep in Section 58 imposes a new housing tax and
punishes Californians for where they live.
A Hidden Tax That Drives Up Housing Costs
- AB 130 creates a new Vehicle Miles Traveled (VMT) “fee” that operates like a tax on single-family homes and apartments.
- This new tax on housing will raise the cost of new construction without delivering local benefits, costing as much as $16,200 annually or $324,000 over 20 years for each new house or apartment unit.


Hurts Working Families and Communities of Color
- The New Tax on Housing will disproportionately harm low-income and working families — especially in communities of color — who cannot afford the added costs and will be priced out of homeownership.
- The cost of these higher taxes will raise home prices, making the housing market unaffordable for 818,000 households.
- Rents for new apartments will increase by $1,350—a stunning 48% increase over the state’s median rent.
Stalls Construction, Kills Jobs
- AB 130 lacks clear standards, adding more risk, red tape, litigation and cost at a time when California needs more new housing — not barriers to building.
- The New Tax on Housing will stall housing projects, kill good-paying jobs and lead to fewer homes being built.

We can’t afford NEW TAXES on housing, repeal AB 130’s Section 58!
Tell lawmakers: Repeal the NEW TAX on Housing
Complete the form below to tell Sacramento lawmakers and Governor Newsom to
repeal the NEW TAX on Housing.
Protect Housing, Jobs, and Taxpayers
Join our growing coalition to repeal the New Housing Tax and protect housing, jobs and taxpayers in California.