Bill > SB723

This bill amends California property tax law to increase the maximum value of properties that county boards of supervisors can exempt from property taxation. Currently, properties with a total base year value of $10,000 or less can be exempted, but this bill raises that threshold to $20,000 for lien dates occurring between January 1, 2026, and January 1, 2031. The bill requires the State Board of Equalization to collect and report data on the expanded exemption, including the additional assessed value exempted and the number and types of taxpayers benefiting from the change. The legislation aims to provide individuals relief from increased tax burdens due to rising costs. Importantly, the bill specifies that the state will not reimburse local agencies for the property tax revenues lost as a result of this exemption expansion. The bill takes effect immediately as a tax levy, which means it can be implemented as soon as it is passed, and it requires a two-thirds approval in each legislative house. The reporting requirement for the State Board of Equalization will become inoperative on January 1, 2032, ensuring a time-limited data collection period to evaluate the impact of the exemption.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB723