SB 288: 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 provide that the one-year periods described above shall be deemed to end one year after the effective date of certain court orders resolving the disposition of the property if the eligible transferee files specified documents with the assessor, including a copy of a court order indicating that a probate matter prohibited the eligible transferee from establishing the property as their principal place of residence within the one-year period described above. 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. August 13, 2026August 13 hearing: Held in committee and under submission.
2. August 5, 2026August 5 set for first hearing. Placed on suspense file.
3. June 30, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 29). Re-referred to Com. on APPR.
4. June 1, 2026From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
5. May 4, 2026Referred to Com. on REV. & TAX.
6. January 27, 2026In Assembly. Read first time. Held at Desk.
7. January 27, 2026Read third time. Passed. (Ayes 40. Noes 0. Page 3299.) Ordered to the Assembly.
8. January 26, 2026Read second time. Ordered to third reading.
9. January 22, 2026Read second time and amended. Ordered to second reading.
10. January 22, 2026From committee: Do pass as amended. (Ayes 7. Noes 0. Page 3268.) (January 22).
11. January 21, 2026Set for hearing January 22.
12. January 20, 2026January 20 hearing: Placed on APPR. suspense file.