Property taxation: change in ownership: family homes and farms.

Senator Seyarto's property tax legislation expands California's existing exclusions for family home and farm transfers to cover situations where an eligible transferor dies before the property changes hands. The measure modifies Section 63.2 of the Revenue and Taxation Code, which currently allows parents to transfer primary residences and agricultural properties to their children, or grandparents to their grandchildren, without triggering reassessment.

Under the amended provisions, property transfers between eligible transferees following the death of a qualified transferor would qualify for the same tax treatment. The bill maintains core requirements that transferred homes must become the transferee's primary residence within one year and that recipients must file for homeowners' or disabled veterans' exemptions during that period. For family farms, the exclusion applies separately to each legal parcel comprising the agricultural property.

Local governments would bear the fiscal impact of these expanded exclusions, as the legislation explicitly prohibits state reimbursement for resulting property tax revenue losses. The measure takes effect immediately upon enactment as a tax levy, with the State Board of Equalization authorized to implement emergency regulations after consulting with county assessors.