Property taxation: exemption: low-value properties.

Plain English Breakdown

The candidate explanation included speculative claims about cost reduction and state reimbursement which are not supported by the official source material.

Property Tax Exemption Increase

The bill increases the maximum exemption amount for low-value properties from $10,000 to $20,000 and sets rules for how this change will be implemented.

What This Bill Does

• Increases the property tax exemption limit for low-value properties from $10,000 to $20,000 starting in January 2026.
• Requires county boards of supervisors to track how well the new exemption limit is working and report back on its effects.

Who It Names or Affects

• Property owners with low-value properties who might qualify for a higher property tax exemption.
• County boards of supervisors responsible for deciding which properties can be exempt from taxes.

Terms To Know

lien date

The specific day each year when property values are set for tax purposes.

tax expenditure

Money the government does not collect in taxes because of certain exemptions or deductions.

Limits and Unknowns

• The bill only applies to properties with a value below $20,000 starting from January 1, 2026.
• It is unclear how many property owners will actually benefit from this change.

Official Summary Text

SB 723, as amended, Choi.
Property taxation: exemption: low-value properties.
The California Constitution authorizes the Legislature, with the approval of
2
/
3
of the membership of each legislative house, to allow a county board of supervisors to exempt from property taxation those properties having a full value too low to justify the costs of assessment and collection. Existing property tax law implementing this authority generally limits any exemption granted under this constitutional provision by a county board of supervisors to real property with a total base year value, as adjusted annually for inflation as provided, or personal property with a full value, not exceeding $10,000. Existing property tax law also limits any exemption for new construction to situations where the new total base year value of the property, as adjusted for inflation, including the new
construction, is $10,000 or less.
This bill would raise these maximum exemption amounts from $10,000 to
$25,000
$20,000
for lien dates occurring on or after January 1, 2026, and before January 1,
2036,
2031.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax exemption will achieve, detailed performance indicators, and data collection requirements.
This bill would make specified findings detailing the goal,
purpose, and objective of the above-described expansion of a tax exemption, performance indicators for determining whether the expanded exemption meets that goal, purpose, and objective, and data collection requirements.
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