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

Plain English Breakdown

The bill summary text does not specify the exact wording for the time frame of the disaster declaration but implies it is from January 1, 2025 to December 31, 2029.

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 additional years if a disaster is declared in their area between January 1, 2025 and December 31, 2029.

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 additional years if a disaster is declared in their area between January 1, 2025 and December 31, 2029.
• Specifies that local agencies will not receive state reimbursement for any property tax revenue lost due to this bill.

Who It Names or Affects

• People who own properties damaged or destroyed by disasters declared between January 1, 2025 and December 31, 2029.
• County boards of supervisors in areas affected by such disasters.
• Local agencies that might lose property tax revenue.

Terms To Know

Base Year Value

The value assigned to a piece of real estate for property tax purposes, which generally does not change unless there is new construction or a change in ownership.

Lien Date

A specific date each year when the assessed value of properties is determined for property tax purposes.

Limits and Unknowns

• The bill does not specify what happens if a disaster occurs outside the specified time frame.
• It does not provide details on how local agencies will manage lost revenue from this change in policy.

Official Summary Text

SB 603, 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 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, 2025,
but before January 1, 2030,
to extend the above-described time period to transfer by up to 3
years for properties located in that county. The bill would apply to the determination of base year values for lien dates occurring on or after January 1,
2025.
2025, and before January 1, 2030.
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