How do I handle the 2025 annual CAM reconciliation?
Prorate the reconciliation. Charges allocable to January through September 2025 (9 months) remain taxable at the applicable rate — 2.0% state plus the county surtax in effect during that period. Charges for October through December 2025 (3 months) are fully tax-exempt under HB 7031. Your property management team or CPA should apportion the annual reconciliation accordingly and document the methodology used.