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

Assembly Member Gipson's property tax relief measure extends reconstruction deadlines and adjusts valuation methods for properties damaged in the 2025 California fire disasters. The legislation provides affected property owners an additional three years beyond the standard five-year period to rebuild while retaining their original property tax base year value, specifically targeting damage that occurred between January 7 and February 1, 2025, in the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley areas.

The bill establishes new valuation protocols requiring assessors to account for reductions in property value due to damage, destruction, depreciation, or obsolescence when determining January 2025 fair market values. Properties must demonstrate damage resulting in value reduction exceeding $10,000 to qualify for these adjusted valuations. While local tax authorities must implement these changes without state reimbursement for lost property tax revenue, the state remains obligated to cover any new administrative costs deemed state-mandated by the Commission on State Mandates.

Designated as urgency legislation for immediate implementation, the measure aims to provide prompt relief to property owners who may face challenges meeting existing deadlines or responding to eligibility notices. The provisions apply to property tax assessments beginning in the 2025-26 fiscal year and continue in subsequent years, establishing a framework for consistent application of these disaster relief mechanisms across affected jurisdictions.