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

Senators Allen, McNerney, and Pérez marshal an urgent, targeted approach to disaster‑related property tax relief, weaving authorial intent with California’s tax framework to aid wildfire-impacted homeowners in Los Angeles and Ventura counties. The measure establishes a multi‑part framework that centers on extending relief windows, broadening local reassessment authority, and adding disaster‑focused exemptions tied to reconstruction and occupancy.

First, the bill lengthens the period in which the base year value of a disaster‑damaged property may be applied to replacement property rebuilt on the same site—from five years to eight years—for a defined set of fires occurring between late 2024 and early 2025. The extended window applies to base year value determinations for the 2025–26 fiscal year and beyond. Core mechanics governing comparability, adjustments, and value thresholds remain: if the replacement property is within 120 percent of the original’s full cash value, the original adjusted base year value applies; if it exceeds 120 percent, incremental value above 120 percent is added to the adjusted base year value; if it is below the adjusted base year value, the lower amount governs. The measure retains a prohibition on receiving relief under both this mechanism and the preexisting disaster relief pathway. Local assessors would face added duties to administer the extended timeline, including safeguards against misstatements in filings, with associated penalties.

Second, the measure expands local reassessment authority for damaged property by authorizing counties to enact ordinances that specify when damage qualifies for reassessment and to begin reassessment when damage occurred within the preceding year. Eligible property owners may file within the ordinance period or within 12 months of the misfortune or calamity, with the assessor obliged to determine both land and improvements values before and after the damage and to adjust taxes accordingly. The bill also broadens the veterans’ property tax exemption: the base exemption amount increases to 150,000 dollars (adjusted for inflation) for qualifying veterans whose household income falls below a threshold, and it broadens eligibility criteria and ownership arrangements. In disaster contexts, the exemption may deem a veteran’s dwelling to be the principal residence where reconstruction is planned and occupancy is intended, with documentation and reconstruction timelines required. A new use‑based exemption is created for disaster‑impacted property that previously qualified for an exemption but is no longer used exclusively for exempt purposes due to damage; eligibility depends on ownership continuity, demonstrated reconstruction intent, documentation, and a reconstruction target date, with the exemption operating only for lien dates through 2033 and repealing at year’s end.

Finally, the bill anchors a county‑level governance approach, accompanied by findings that emphasize county specificity, and it states that no state reimbursement will be provided to localities for property tax revenue losses arising from the act. It also notes the urgent effect of the measure to address wildfire consequences, with perjury and related penalties expanded to support the integrity of new reassessment and exemption processes. Together, these provisions preserve the existing framework while adding disaster‑specific pathways—some of which are temporary—and rely on local authorities to administer the relief through ordinances, assessments, and appeals, all within a broader policy context that prioritizes immediate, place‑based responses to wildfire disruption.