CaliforniaProperty taxation: exemption: low-value properties.
What it does
The California Constitution authorizes the Legislature, with the approval of 23 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.
More detail
This bill would raise these maximum exemption amounts from $10,000 to $20,000 for lien dates occurring on or after January 1, 2026, and before January 1, 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.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Jul 14Set, second hearing. Held in committee and under submission.Latest
- Jul 1From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.Major
- Jun 24June 23 set for first hearing. Placed on REV. & TAX. suspense file.
- Jun 5Referred to Com. on REV. & TAX.Minor
- May 29In Assembly. Read first time. Held at Desk.Minor
- Vote recorded Special Consent SB723 Choi et al. Result: pass.Upper
- May 29Read third time. Passed. (Ayes 38. Noes 0. Page 1328.) Ordered to the Assembly.Passed Senate
- May 27Ordered to special consent calendar.
- May 23Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- May 23From committee: Do pass. (Ayes 6. Noes 0. Page 1211.) (May 23).Minor
- May 20Set for hearing May 23.
- May 19May 19 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- May 15Set for hearing May 19.
- May 14From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 1083.) (May 14). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- May 7From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.Major
- Mar 18Set for hearing May 14.
- Mar 12Referred to Com. on REV. & TAX.Minor
- Feb 24Read first time.Minor
- Feb 24From printer. May be acted upon on or after March 24.
- Feb 21Introduced. To Com. on RLS. for assignment. To print.Introduced