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 period for transferring property tax base year values from damaged or destroyed properties to replacement properties by up to three years in counties affected by disasters declared by the Governor between January 1, 2026 and December 31, 2030.

What This Bill Does

• Allows county boards of supervisors to extend the period for transferring property tax base year values from damaged or destroyed properties to replacement properties by up to three years in counties affected by disasters declared by the Governor between January 1, 2026 and December 31, 2030.
• Applies this extension only if the Governor declares an emergency or a state of disaster in that county between January 1, 2026 and December 31, 2030.
• Does not require the state to reimburse local agencies for any property tax revenue lost due to these extensions.
• Applies to lien dates from January 1, 2026 through December 31, 2030.

Who It Names or Affects

• Property owners who have suffered damage or destruction of their properties in declared disaster areas.
• County boards of supervisors responsible for managing property tax transfers during disasters.

Terms To Know

Base Year Value

The value assigned to a piece of real estate when it is first purchased or newly constructed, which remains unchanged unless there are substantial improvements made to the property.

Lien Date

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

Limits and Unknowns

• The bill does not specify what happens if a disaster occurs after January 1, 2031.
• It is unclear how many counties will be affected by this extension during the specified period.

Official Summary Text

SB 1053, as introduced, 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.
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