Property taxation: exemption: low-value properties.

Senator Choi's property tax reform measure doubles the maximum exemption threshold for low-value California properties from $10,000 to $20,000 between 2026 and 2031, allowing county boards of supervisors to exempt properties where assessment and collection costs exceed potential tax revenue.

The legislation maintains existing provisions permitting counties to exempt both real property, based on adjusted base year value, and personal property with qualifying full values. For new construction, the total property value ceiling for exemption eligibility increases from $10,000 to $20,000 during the same five-year period. The bill preserves the current $50,000 exemption limit for qualifying possessory interests in public facilities through 2030.

To track implementation, the State Board of Equalization must annually report to the Legislature on the total assessed value exempted and demographic data about taxpayers receiving the expanded exemption. While counties retain discretion over adopting the higher thresholds, the state will not reimburse local agencies for any resulting revenue reductions. The measure takes effect immediately upon enactment as a tax levy under the California Constitution.