Property tax: exclusion from reassessment: home hardening retrofitting improvements.

Plain English Breakdown

The official source material does not provide specific details on what types of home hardening improvements qualify for this exemption.

Property Tax Exclusion for Home Hardening Improvements

This law makes certain home hardening improvements exempt from property tax reassessment, treating them as regular maintenance rather than new construction.

What This Bill Does

• Defines home hardening retrofitting improvements to include upgrades that protect homes against natural disasters like fires and earthquakes without changing the building's size or use.
• Requires the State Board of Equalization to create rules for these improvements so they are not reassessed as if they were new construction, which would increase property taxes.

Who It Names or Affects

• Homeowners who make certain safety upgrades to their properties will benefit from this law by avoiding higher property taxes.
• The State Board of Equalization must create rules for implementing these tax exemptions.

Terms To Know

Reassessment

When a property’s value is re-evaluated and taxed based on its new worth after significant changes, like adding an addition or making major renovations.

Home Hardening Retrofitting Improvements

Safety upgrades to existing buildings that protect against natural disasters without changing the building's size or primary use.

Limits and Unknowns

• The bill does not specify which exact types of home hardening improvements qualify for this exemption.
• It is unclear how these rules will be enforced and monitored by local assessors.

Official Summary Text

AB 1971, as amended, Bennett.
Property tax: exclusion from reassessment: home hardening retrofitting improvements.
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. The California Constitution specifies that “newly constructed” does not include the construction or reconstruction of seismic retrofitting components, as defined by the Legislature. Existing law, pursuant to that constitutional authorization, defines seismic retrofitting components to mean seismic retrofitting improvements and improvements utilizing earthquake hazard mitigation technologies. Existing law, pursuant to constitutional authorization, also excludes from the
definition of “newly constructed” the construction or installation of certain fire sprinkler systems, or other fire extinguishing systems, fire detection systems, or fire-related egress improvements.
This bill would require the State Board of Equalization to
adopt rules and regulations, as described, clarifying
clarify
that
a
home hardening retrofitting
improvements,
improvement,
as defined,
that do
to an existing structure is considered nonassessable repair and maintenance, provided that the improvement does
not add square footage,
do not
change the property’s use,
do not
include structural reconfigurations,
and do not
or
include substantial
rehabilitation do not trigger reassessment as new construction.
rehabilitation.

Current Bill Text

Download Bill PDF