An act to amend Section 69 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
Summary
SB 603 would expand an existing California property tax relief rule for owners whose real property is substantially damaged or destroyed by a Governor-declared disaster. Under current law, those owners may transfer the property’s Proposition 13 base year value to a comparable replacement property in the same county if the replacement is acquired or newly constructed within five years of the disaster. This bill would allow county boards of supervisors in counties placed in a state of emergency or disaster on or after January 1, 2025, and before January 1, 2030, to extend that five-year replacement window by up to three additional years by ordinance.
The bill applies to base year value determinations for lien dates from January 1, 2025, through January 1, 2030. It also specifies how assessors calculate the transferred value, preserves existing rules defining substantially damaged property and comparable replacement property, and keeps prior special extensions for certain disasters such as the Cedar Fire, the COVID-19 emergency period, and the 2018 Camp Fire. SB 603 would take effect immediately as a tax levy.
Impact
SB 603 would amend Revenue and Taxation Code Section 69, which governs disaster-related transfer of base year value for property tax purposes. The practical effect is to give counties temporary local authority to extend the replacement deadline for disaster victims, potentially preserving lower property tax assessments for longer while owners rebuild or relocate within the same county after a qualifying disaster. The bill would also confirm that the state will not reimburse local agencies for any resulting property tax revenue losses, and it would apply only to disasters and lien dates within the bill’s specified 2025-2030 window.
Sentiment
The available vote history suggests broad support in committee and on the floor, with unanimous or near-unanimous votes at each recorded stage and no recorded opposition votes. The bill was advanced multiple times, including a special consent action in the Senate, indicating that members generally viewed it as a targeted disaster-relief measure rather than a controversial tax change. However, the measure was later held in committee and under submission, showing that despite support, it still faced procedural review and fiscal scrutiny.
Contention
The main policy issue is fiscal rather than ideological: extending the base year value transfer period can reduce property tax revenues for affected local governments, even though the bill bars state reimbursement. That cost exposure likely explains why the bill was referred to and placed on the Appropriations suspense file. Another point of potential contention is the scope of the extension authority, since the bill gives county boards discretion to grant up to three extra years only for disasters in a defined future period, which may raise questions about fairness across counties and whether the relief should be automatic or locally elected.
To Amend The Law Concerning The Assessment Of Property; To Amend The Law Concerning Substantial Improvements To Real Property; And To Amend The Method Of Valuation For Real Property Under Arkansas Constitution, Article 16, § 5.