Section SEC. 26.
Cal. * California Constitution - CONS § SEC. 26.
in effect(a)
Taxes on or measured by income may be imposed on persons, corporations, or other entities as prescribed by law.
(b)
Interest on bonds issued by the State or a local government in the State is exempt from taxes on income.
(c)
Income of a nonprofit educational institution of collegiate grade within the State of California is exempt from taxes
on or measured by income if both of the following conditions are met:
(1)
The income is not unrelated business income as defined by the Legislature.
(2)
The income is used exclusively for educational purposes.
(d)
A nonprofit organization that is exempted from taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, or the successor of either, is exempt from any business license tax or fee measured by income or gross receipts that is levied by a county or city, whether charter or general law, a city and county, a school district, a special district, or any other local agency.
References
referencesCal. Revenue and Taxation Code - RTC § 23701.
referencesCal. * California Constitution - CONS § 501.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026