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AB-245 • 2026

Property taxation: application of base year value: disaster relief.

Property taxation: application of base year value: disaster relief.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Gipson
Last action
Official status
Chaptered
Effective date
Not listed

Plain English Breakdown

The official text states that no appropriation is made for lost tax revenue, but it does not explicitly confirm whether local agencies will face unreimbursed costs in practice.

Extending Property Tax Relief Deadlines for Specific 2025 Fires

This law extends the time limit to rebuild fire-damaged homes without a property tax increase from five years to eight years and requires assessors to lower home values based on damage from six specific fires in early 2025.

What This Bill Does

  • Extends the deadline for rebuilding damaged properties by three years, changing it from five years to eight years.
  • Applies this extended time limit only to homes destroyed or severely damaged by the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley fires between January 7 and February 1, 2025.
  • Requires county assessors to lower the fair market value of affected properties on tax records for January 1, 2025, based on damage or destruction.
  • Allows property owners to keep their original low tax base when they rebuild comparable homes within this new eight-year window.

Who It Names or Affects

  • Homeowners whose properties were damaged or destroyed by the six named fires in early 2025.
  • County assessors and other local tax officials responsible for calculating property values.

Terms To Know

Base year value
The original purchase price or construction cost of a property used to calculate annual property taxes, which usually stays low even if the home's market value rises.
Reassessment
A process where officials recalculate the taxable value of a property, often resulting in higher tax bills after major changes like rebuilding or new ownership.

Limits and Unknowns

  • The law only applies to properties damaged by six specific fires that occurred between January 7 and February 1, 2025.
  • Property owners must rebuild a home that is comparable in size and use to the one destroyed to qualify for tax relief.

Bill History

  1. California Legislative Information

    Chaptered

Official Summary Text

Property taxation: application of base year value: disaster relief.