AB 1253 California Assembly · 2025-2026 Regular Session

Property taxation: newly constructed property: reconstruction of damaged or destroyed property.

Summary

The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, "full cash value" is defined as the assessor's valuation of real property as shown on the 1975–76 tax bill under "full cash value" or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. Existing law defines "newly constructed" and "new construction" to mean any addition to real property since the last lien date and any alteration of land or of any improvement since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use. Existing law, where real property has been damaged or destroyed by misfortune or calamity, excludes from the definition of "newly constructed" and "new construction" any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. This bill would authorize an assessor, in the case where state or local government action mandates a suspension or modification of rebuild development standards, and subject to specified law, to align the assessment of "substantial equivalence" with the requirements and criteria set forth by the government for reconstruction of property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, as provided.

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 21, 2025 Last action Feb 2, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

05/05/25 - Amended Assembly → AB1253 · 1 edit

MINOR

No substantive policy changes were made between these two versions. The diff reflects a transition from the official printed legislative format to the web-published version of the same bill text. The actual statutory language in Section 70 of the Revenue and Taxation Code is identical in both versions.

TECHNICAL

The document was reformatted from the official printed legislative layout (with line numbers, page headers, and formal digest block) to a web-page presentation format including navigation elements, metadata links, and a different header structure. No changes to the bill's operative text.

02/21/25 - Introduced → 04/21/25 - Amended Assembly · 4 edits · Apr 21, 2025

MODERATE

The amended bill adds a major new property tax provision (Section 70, Revenue and Taxation Code) that allows assessors to align 'substantial equivalence' determinations with government-mandated rebuild standards for property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley. This means homeowners rebuilding after those fires may avoid a new base year value (and thus a spike in property taxes) even if their rebuilt home differs from the original due to modified building codes. The original insulation manufacturing license fee increase from $2,500 to $2,600 remains but is now renumbered as Section 2.

Scope change

The bill expanded from a narrow single-fee adjustment in the Business and Professions Code to a dual-purpose bill that also addresses property tax assessment for fire disaster reconstruction under the Revenue and Taxation Code, affecting homeowners in specific Los Angeles County areas impacted by the January 2025 wildfires.

SCOPE

Entirely new Section 1 amending Revenue and Taxation Code Section 70, adding property tax assessment rules for reconstruction after the 2025 fire disasters. This significantly expands the bill's scope from a single fee adjustment to a major property tax relief mechanism.

ELIGIBILITY

Allows assessors to align 'substantial equivalence' with government-mandated rebuild standards when state or local government suspends or modifies rebuild development standards, specifically for property damaged by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley as proclaimed by the Governor.

DEFINITION

Restructures the definition of 'newly constructed' and 'new construction' into four subdivisions (a through d), clarifying that only the portion of reconstruction exceeding substantial equivalence receives a new base year value under Section 110.1.

TECHNICAL

The original insulation manufacturing license fee amendment (raising the cap from $2,500 to $2,600) is retained but renumbered from Section 1 to Section 2 due to the insertion of the new property tax section.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 2, 2026

Lower · Passed

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

lower

May 23, 2025

Lower · Passed

In committee: Held under submission.

lower

May 21, 2025

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

May 14, 2025

Lower · Passed

In committee: Hearing postponed by committee.

lower

May 6, 2025

Committee

Re-referred to Com. on APPR.

lower

May 5, 2025

Lower · Passed

Read second time and amended.

lower

May 1, 2025

Introduced

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 28).

lower

Apr 28, 2025

Committee

In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

lower

Apr 21, 2025

Committee

Re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 96.

lower

Apr 21, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & P. Read second time and amended.

lower

Mar 13, 2025

Committee

Referred to Com. on B. & P.

lower

Feb 22, 2025

Lower · Passed

From printer. May be heard in committee March 24.

lower

Feb 21, 2025

Introduced

Introduced. To print.

lower

1 primary · 0 co-sponsors