Property taxation: application of base year value: disaster relief.

The document was reformatted from a printed legislative chapter layout (with page numbers, headers, and footers) to a web-based bill text page. Web navigation elements (skip to content, home, accessibility, FAQ, feedback, sitemap, login, Quick Search, version dropdown, share links) were added. A publication date of 10/13/2025 was included. The statutory text itself is unchanged.

The date window for qualifying property damage was expanded from 'on or after January 7, 2025, but before February 1, 2025' to 'on or after November 1, 2024, but before February 1, 2025,' giving owners of property damaged in late 2024 the same three-year extension on base year value transfer.

The 2024 Mountain Fire and Franklin Fire were added to the list of qualifying disasters in Section 70.5(f)(3), meaning property owners affected by those fires are now eligible for the three-year extension on applying their base year value to reconstructed replacement property.

The date range for the 3-year reconstruction deadline extension was expanded from January 7, 2025 through February 1, 2025 to November 1, 2024 through January 31, 2025 (changed 'on or before February 1' to 'before February 1'), covering a much wider window of fire damage.

The 2024 Mountain Fire and Franklin Fire were added as qualifying disasters in subdivision (f)(3), making property owners damaged by those fires eligible for the 3-year extension of the base year value retention period.

A new Section 1.5 was added that provides an alternate version of the Section 70.5 amendment, designed to become operative only if both AB 245 and SB 663 are enacted by January 1, 2026 and AB 245 is enacted last. This prevents conflicting amendments to the same code section.

A new SEC. 4 was added establishing the conditional operative mechanism: Section 1.5 becomes operative only if both bills are enacted and effective by January 1, 2026, both amend Section 70.5, and AB 245 is enacted after SB 663. In that case, Section 1 of AB 245 would not become operative.

The phrase 'Notwithstanding any other law' was changed to 'Notwithstanding any law' in subdivisions (e)(1) and (f)(1), a minor drafting simplification.

New Section 171.5 requires that for property impacted by the 2025 fire disasters in Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley, the fair market value on January 1, 2025 must reflect reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or other factors causing a decline in value. This applies when the pre-damage value exceeds the post-damage value by at least $10,000 and the property is not already eligible for relief under Section 170.

Defines 'qualified real property' for the new valuation provision as property impacted by the named 2025 fire disasters where the combined full cash value of land, improvements, and personality before damage exceeds the post-damage value by $10,000 or more, and the property is not eligible for Section 170 relief.

Removed a section stating the Legislature's intent to enact subsequent legislation providing meaningful and automatic property tax relief for disaster victims in areas proclaimed to be in a state of emergency by the Governor.

Fiscal committee vote changed from 'no' to 'yes,' indicating the bill now has fiscal committee approval. The state still does not reimburse local agencies for lost property tax revenues.

Legislative findings expanded to reference both Sections 1 and 2 of the act (previously only Section 1) and to include language about preventing undue hardship from value reductions in determining 2025 calendar year property valuations. Section numbering was adjusted throughout due to the new section.

Section 1(f)(3) and Section 171.5(b) now require that the Governor have proclaimed a state of emergency for each named fire (Palisades Fire, Eaton Fire, Hurst Fire, Lidia Fire, Sunset Fire, or Woodley Fire) before property tax relief applies. The Assembly version referenced the fires by area name only without this explicit condition.

Throughout the bill, the fires are now identified by their full names (e.g., 'Palisades Fire' instead of just 'Palisades') in the definitions of 'qualified property,' 'qualified real property,' and the legislative findings section, adding specificity to which events qualify for relief.

The digest vote requirement language changed from 'majority 2/3' to simply '2/3,' a minor wording clarification with no substantive effect.

New Section 6 declares the bill an urgency statute that takes effect immediately upon approval, justified by the need to provide immediate automatic relief to victims of the 2025 fires in Los Angeles and Ventura counties.

The required vote was changed from a simple majority to a two-thirds supermajority in each house, consistent with the addition of the urgency clause.

In subdivisions (e) and (f) of Section 70.5, 'Notwithstanding any law' was changed to 'Notwithstanding any other law,' a minor clarifying edit that narrows the preemption language slightly.

The bill now actually amends Section 70.5 of the Revenue and Taxation Code instead of merely expressing intent to pass future legislation. This makes it operative law rather than a placeholder.

The bill now creates a state-mandated local program (changed from 'no' to 'yes') because it imposes additional duties on local tax officials (assessors).

Extends the 5-year reconstruction deadline by 3 years (to 8 total) for property substantially damaged or destroyed between January 7, 2025 and February 1, 2025, in the Palisades, Eaton, Hurst, Lidia, Sunset, or Woodley fire areas.

Extends the 5-year reconstruction deadline by 3 years for property damaged between November 1, 2018 and November 30, 2018, in the Woolsey Fire or Camp Fire disaster areas.

Codifies detailed definitions and procedures for base year value transfer, including: property is 'substantially damaged' if improvements sustain physical damage exceeding 50% of full cash value; reconstructed property must be comparable in size, utility, and function; a 120% full cash value threshold determines how the new base year value is calculated.

Specifies that only the owner or owners of the damaged property (individuals, partnerships, corporations, or other entities) are eligible for relief, and that recipients of relief under this section are not eligible for relief under Section 69.

Provides that no state appropriation is made and the state will not reimburse local agencies for property tax revenues lost due to this bill, notwithstanding existing reimbursement requirements under Section 2229 of the Revenue and Taxation Code.

Adds legislative findings declaring the base year value extension does not constitute a gift of public funds under Section 6 of Article XVI of the California Constitution, and that it serves the public purpose of giving owners a fair opportunity to reconstruct.