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

Senator Seyarto's property tax legislation expands exclusions from reassessment for transfers of family homes and farms between eligible relatives, building upon existing protections for parent-child and grandparent-grandchild property transfers in California. The bill modifies Section 63.2 of the Revenue and Taxation Code to include transfers between any combination of parents, children, grandparents, and grandchildren, provided the property remains a principal residence or continues agricultural use.

For family homes, transferees must occupy the property as their primary residence within one year and file for homeowner's or disabled veteran's exemptions during that period. The legislation clarifies that for transfers through judicial decrees, the one-year deadline begins on the decree's effective date. Transferees must notify county assessors of their intent to claim the exclusion within one year of the transferor's death.

The measure maintains existing valuation methods, applying the original taxable value plus annual adjustments when fair market value remains under $1 million above the current assessed value. For properties exceeding this threshold, the new taxable value equals the fair market value minus $1 million. County assessors may charge processing fees up to $175 for late claims. While the bill requires state reimbursement of local administrative costs if mandated, it explicitly prohibits compensation to local agencies for lost property tax revenues resulting from the expanded exclusions.