Winter Fires of 2025: real property tax: exemptions and reassessment.

Senators Allen, McNerney, and Pérez have introduced legislation extending property tax relief measures for properties damaged by the January 2025 wildfires in Los Angeles and Ventura Counties, including the Palisades, Eaton, Hughes, and Kenneth fires.

The bill extends the period for applying base year values to replacement properties from five to eight years when reconstructing on the same site. Property owners now have 24 months instead of 12 months to apply for reassessment of damaged properties. The provisions apply to properties substantially damaged or destroyed between January 1 and February 1, 2025.

For properties that received welfare exemptions in 2025 but can no longer maintain exempt uses due to fire damage, the bill preserves their exempt status until the property is replaced, reconstructed, or returns to its prior use, with these provisions remaining in effect through January 1, 2033. While creating additional duties for local tax officials, the legislation specifies that no state reimbursement will be provided to local agencies for lost property tax revenues.

The bill includes an urgency clause for immediate implementation upon enactment, citing the need to provide prompt economic relief to affected property owners in Los Angeles and Ventura Counties. These changes apply to base year value determinations starting with the 2025-26 fiscal year.