SB 284: Property taxation: change in ownership: family homes and farms.

Official summary

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

The California Constitution limits the amount of ad valorem taxes on real property to 1% of the full cash value of that property, defined as the county assessor’s valuation of real property as shown on the 1975–76 tax bill and, thereafter, the appraised value of the real property when purchased, newly constructed, or a change in ownership occurs after the 1975 assessment, subject to an annual inflation adjustment not to exceed 2%.

Pursuant to constitutional authorization, existing property tax law, on and after February 16, 2021, excludes from classification as a change in ownership the purchase or transfer of a family home or family farm, as those terms are defined, of the transferor in the case of a transfer between parents and their children, or between grandparents and their grandchildren if all the parents of those grandchildren are deceased, if the property continues as the family home or family farm of the transferee, as specified. For purposes of the transfer of a family home, that law requires the transfer to be of a principal residence of the transferor and to become the principal residence of the transferee within one year of the transfer. That law also requires the transferee to file for the homeowners’ or disabled veterans’ exemption within a year of the transfer, as described.

This bill would expand the above-described exclusion to include, in the case of the purchase or transfer of a family home or a family farm, as applicable, a purchase or transfer of that family home or family farm between eligible transferees, as specified. The bill would also specify that, in the event of a transfer by certain judicial decrees, the transfer commencing either of the above-described one-year periods shall be deemed to occur as of the effective date of the final judicial decree, as specified. The bill would require a transferee to notify the assessor of the county in which the property is located of their intention to claim the exclusion, as specified. By expanding the duties of local tax officials, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.

Sponsors

Sponsors by party (alphabetical): Republican 1

“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. July 14, 2025Set, final hearing. Held in committee and under submission.
2. July 7, 2025July 7 set for second hearing. Placed on APPR. suspense file.
3. June 25, 2025From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
4. June 24, 2025June 23 set for first hearing canceled at the request of author.
5. June 5, 2025Referred to Com. on REV. & TAX.
6. May 29, 2025In Assembly. Read first time. Held at Desk.
7. May 29, 2025Read third time. Passed. (Ayes 38. Noes 0. Page 1324.) Ordered to the Assembly.
8. May 27, 2025Ordered to special consent calendar.
9. May 23, 2025Read second time. Ordered to third reading.
10. May 23, 2025From committee: Do pass. (Ayes 6. Noes 0. Page 1194.) (May 23).
11. May 20, 2025Set for hearing May 23.
12. May 19, 2025May 19 hearing: Placed on APPR. suspense file.