AB-1253 • 2026

Property taxation: newly constructed property: reconstruction of damaged or destroyed property.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Schultz
Last action: 2026-02-02
Official status: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide details on how assessors decide if a home is 'substantially equivalent' to its original state when it was not destroyed or damaged.

Property Tax Rules for Rebuilt Homes

This law changes how property taxes are calculated for homes that need to be rebuilt after being damaged by fires in specific California towns.

What This Bill Does

Allows assessors to follow new rules set by local and state governments for rebuilding homes after major fires, specifically for the areas affected by the 2025 fire disasters.

Who It Names or Affects

Homeowners who need to rebuild their houses due to the 2025 fires.
Local assessors responsible for property tax assessments in Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley.

Terms To Know

Substantially equivalent: When a rebuilt home is almost exactly like it was before damage or destruction.
Assessor: A government official who determines the value of property for tax purposes.

Limits and Unknowns

The bill only applies to specific areas affected by fires in 2025.
It does not change how taxes are calculated for other types of construction or repairs.

Bill History

2026-02-02 California Legislative Information
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2026-01-31 California Legislative Information
Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
2025-05-23 California Legislative Information
In committee: Held under submission.
2025-05-21 California Legislative Information
Joint Rule 62(a), file notice suspended. (Page 1627.)
2025-05-21 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-14 California Legislative Information
In committee: Hearing postponed by committee.
2025-05-06 California Legislative Information
Re-referred to Com. on APPR.
2025-05-05 California Legislative Information
Read second time and amended.
2025-05-01 California Legislative Information
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 28).
2025-04-28 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2025-04-21 California Legislative Information
Re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 96.
2025-04-21 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & P. Read second time and amended.
2025-03-13 California Legislative Information
Referred to Com. on B. & P.
2025-02-24 California Legislative Information
Read first time.
2025-02-22 California Legislative Information
From printer. May be heard in committee March 24.
2025-02-21 California Legislative Information
Introduced. To print.

Official Summary Text

AB 1253, as amended, Schultz.
Property taxation: newly constructed property: reconstruction of damaged or destroyed property.
The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, “full cash value” is defined as the assessor’s valuation of real property as shown on the 1975–76 tax bill under “full cash value” or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. Existing law defines “newly constructed” and “new construction” to mean any addition to real property since the last lien date and any alteration of land or of any improvement since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use. Existing law, where real property has been damaged or destroyed by misfortune or calamity, excludes from the definition of “newly constructed” and “new construction” any timely
reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction.
This bill would authorize an assessor, in the case where state or local government action mandates a suspension or modification of rebuild development standards,
and subject to specified law,
to align the assessment of “substantial equivalence” with the requirements and criteria set forth by the government for reconstruction of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as provided.

Current Bill Text

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