AB 985: Chiquita Canyon Landfill: property tax reassessment and penalties.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)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. The California Constitution authorizes the full cash value base to be reduced to reflect substantial damage, destruction, or other factors causing a decline in value.

This bill would require each property located within a 5-mile radius of the center of the Chiquita Canyon Landfill in the County of Los Angeles to be reassessed so that the full cash value base of the property reflects any decline in value of the property arising from the Chiquita Canyon elevated temperature landfill event, as defined. The bill would require reassessments to be retroactive to the January 1, 2022, lien date. The bill would require, following reassessment, the assessor to send a specified notice of the assessment value change to the taxpayer. By imposing additional duties on local tax officials, this bill would impose a state-mandated local program.

(2)Existing property tax law authorizes any person to elect to pay delinquent taxes in installments (installment redemption plan) by a certain date before the tax collector obtains the power to sell the property in order to redeem certain tax-defaulted property. Existing property tax law prohibits restarting installment payments if those payments are started under these provisions and the amount required to be paid in any fiscal year is not paid as required (default).

This bill would prohibit an installment redemption plan, for which all payments due on or before January 7, 2025, have been timely made, from being considered in default until April 10, 2030, for property located within a 5-mile radius of the center of the Chiquita Canyon Landfill in the County of Los Angeles. By imposing additional duties on local tax officials, this bill would impose a state-mandated local program.

Existing property tax law authorizes, for taxes due on escape assessments for prior fiscal years, those taxes to be paid over a four-year period (installment plan) at the option of the assessee if the additional tax is over $500 and a written request for installment payment is filed by the assessee with the tax collector by a certain time.

This bill would suspend the taxes due on a property making payments pursuant to an installment plan as described above, would prohibit their collection, and would prohibit the taxes from being considered delinquent, all until April 10, 2030, for property located within a 5-mile radius of the center of the Chiquita Canyon Landfill in the County of Los Angeles, provided that, on or before April 1, 2025, all payments required by the plan were timely made. By imposing additional duties on local tax officials, this bill would impose a state-mandated local program.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 1, 2025Chaptered by Secretary of State - Chapter 174, Statutes of 2025.
2. October 1, 2025Approved by the Governor.
3. September 24, 2025Enrolled and presented to the Governor at 3 p.m.
4. September 13, 2025Urgency clause adopted. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 3456.).
5. September 13, 2025Joint Rules 61(a)(14) and 51(a)(4) suspended. (Ayes 59. Noes 20. Page 3413.)
6. September 12, 2025In Assembly. Concurrence in Senate amendments pending.
7. September 11, 2025Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2886.).
8. September 8, 2025Read second time. Ordered to third reading.
9. September 4, 2025Read third time and amended. Ordered to second reading.
10. September 2, 2025Read second time. Ordered to third reading.
11. August 29, 2025Read second time and amended. Ordered returned to second reading.
12. August 29, 2025From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 29).