SB 723: Property taxation: exemption: low-value properties.

Official summary

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

The California Constitution authorizes the Legislature, with the approval of 23 of the membership of each legislative house, to allow a county board of supervisors to exempt from property taxation those properties having a full value too low to justify the costs of assessment and collection. Existing property tax law implementing this authority generally limits any exemption granted under this constitutional provision by a county board of supervisors to real property with a total base year value, as adjusted annually for inflation as provided, or personal property with a full value, not exceeding $10,000. Existing property tax law also limits any exemption for new construction to situations where the new total base year value of the property, as adjusted for inflation, including the new construction, is $10,000 or less.

This bill would raise these maximum exemption amounts from $10,000 to $20,000 for lien dates occurring on or after January 1, 2026, and before January 1, 2031.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax exemption will achieve, detailed performance indicators, and data collection requirements.

This bill would make specified findings detailing the goal, purpose, and objective of the above-described expansion of a tax exemption, performance indicators for determining whether the expanded exemption meets that goal, purpose, and objective, and data collection requirements.

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.

This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

Sponsors

Sponsors by party (alphabetical): Republican 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. July 14, 2025Set, second hearing. Held in committee and under submission.
2. July 1, 2025From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
3. June 24, 2025June 23 set for first hearing. Placed on REV. & TAX. suspense file.
4. June 5, 2025Referred to Com. on REV. & TAX.
5. May 29, 2025In Assembly. Read first time. Held at Desk.
6. May 29, 2025Read third time. Passed. (Ayes 38. Noes 0. Page 1328.) Ordered to the Assembly.
7. May 27, 2025Ordered to special consent calendar.
8. May 23, 2025Read second time. Ordered to third reading.
9. May 23, 2025From committee: Do pass. (Ayes 6. Noes 0. Page 1211.) (May 23).
10. May 20, 2025Set for hearing May 23.
11. May 19, 2025May 19 hearing: Placed on APPR. suspense file.
12. May 15, 2025Set for hearing May 19.