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

Plain English Breakdown

Checked against official source text during the last sync.

Disaster Relief for Property Tax Transfers

The bill allows county boards of supervisors to extend the transfer period for property tax base year values from damaged or destroyed properties to replacement properties by up to three years if a disaster is declared by the Governor, without state reimbursement.

What This Bill Does

• Allows county boards of supervisors to extend the transfer period for property tax base year values from damaged or destroyed properties to replacement properties by up to three years if a disaster is declared by the Governor.
• Applies this extension to counties affected by disasters occurring between January 1, 2026 and December 31, 2030.
• Does not require state reimbursement for property tax revenue losses due to these extensions.

Who It Names or Affects

• Property owners who have suffered damage or destruction of their properties in declared disasters.
• County boards of supervisors responsible for managing local property taxes.
• Local agencies that collect property taxes.

Terms To Know

Base Year Value

The value assigned to a property for tax purposes when it is first purchased or newly constructed, which generally remains the same unless there are substantial changes or disasters.

Lien Date

A specific date each year on which property taxes become due and payable.

Limits and Unknowns

• The bill does not specify how to determine if a disaster qualifies for the extended transfer period.
• Local agencies will lose some tax revenue without state reimbursement, but this is explicitly stated in the bill.

Official Summary Text

SB 1053, as amended, Niello.
Property taxation: transfer of base year value: disaster relief.
Existing property tax law provides, pursuant to a requirement of the California Constitution, that the property tax base year value of real property that is substantially damaged or destroyed by a disaster, as declared by the Governor, may be transferred to a comparable property located within the same county that is acquired or newly constructed, or to replacement property reconstructed on the site of the damaged or destroyed property, within 5 years after the disaster as a replacement property.
This bill would authorize the county board of supervisors of any county proclaimed by the Governor to be in a state of emergency, or otherwise determined or declared by the Governor to be in a state of disaster, on or after January 1, 2026, but before January 1, 2031, to extend both of the above-described time periods to transfer by up to 3 years. The
bill would apply to the determination of base year values for lien dates occurring on or after January 1, 2026, and before January 1,
2031.
2034.
Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
This bill would take effect immediately as a tax levy.

Current Bill Text

Download Bill PDF