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<ns0:Id>20250SB__028496AMD</ns0:Id>
<ns0:VersionNum>96</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-05</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-03-10</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-05-07</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-06-25</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>284</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Seyarto</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Seyarto</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend Section 63.2 of, and to add Section 63.2.1 to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.</ns0:Title>
<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Property taxation: change in ownership: family homes and farms.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>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%.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>This bill would take effect immediately as a tax levy.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:MeasureIndicators>
<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>YES</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_42085BE9-DBD8-44EF-A34A-3952123AE848">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 63.2 of the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
is amended to read:
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<ns0:Num>63.2.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any provision of this chapter, beginning on and after February 16, 2021, a change in ownership shall not include, in whole or in part, any of the following purchases or transfers for which a claim is filed:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The purchase or transfer of real property that is the principal residence of an eligible transferor in the case of a purchase or transfer between parents and their children or between grandparents and their grandchildren, if all of the parents, other than stepparents, of that grandchild or those grandchildren, who qualify as the children of the grandparents, are deceased as of the
date of purchase or transfer.
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The transfer is required to be of a principal residence of the transferor, and become the principal residence of the transferee within one year of the transfer.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The transferee shall file for the homeowners’ or disabled veterans’ exemption within a year of the transfer, and the exclusion shall be removed on the date an eligible transferee, or a subsequent eligible transferee who files for the homeowners’ or disabled veterans’ exemption within one year, is no longer eligible for either the homeowners’ or disabled veterans’ exemption.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
If
applicable, as of the lien date immediately following the date the eligible transferee or subsequent eligible transferee no longer qualifies for the exclusion provided by this section, the base year value established as of the change in ownership date to which the exclusion applied, adjusted annually in accordance with paragraph (1) of subdivision (a) of Section 51, shall be enrolled.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Notwithstanding any other law, in the event of a transfer by judicial decree issued pursuant to Section 11640 of the Probate Code, and only for purposes of the one-year period described in subparagraph (A) or (B), the transfer commencing
that one-year period
shall be deemed to occur as of the effective date of the final judicial decree.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
This section shall not be construed to alter the durations provided for correction of property tax assessments described in either Section 51.5 or 4831.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The transferee shall, within one year of the death of the transferor, notify the assessor of the county in which the property is located of their intention to claim the exclusion provided by this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The purchase or transfer is of a family farm of an eligible transferor in the case of a purchase or transfer between parents and their children or between grandparents and their grandchildren, if all of the parents, other than stepparents, of that grandchild or those grandchildren, who qualify as the children of the grandparents, are deceased as of the date of purchase or transfer.
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
This exclusion shall apply separately to the transfer of each legal parcel that makes up a family farm.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For purposes of this section, each legal parcel that makes up a family farm
shall be deemed to itself be a family farm, except for a legal parcel containing a family home.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A legal parcel containing a family home as described in subparagraph (B) may qualify separately for exclusion under paragraph (1).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The exclusions provided for in this section shall not be allowed unless a claim for the exclusion sought, pursuant to subdivision (f), is filed with the assessor.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A claim filed under this section is not a public document and is not subject to public inspection, except that a claim shall be available for inspection by the transferee and the transferor or
their respective spouse, the transferee’s legal representative, the transferor’s legal representative, the trustee of the transferee’s trust, the trustee of the transferor’s trust, and the executor or administrator of the transferee’s or transferor’s estate.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The new taxable value of the family home or family farm shall be the sum of both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The taxable value of the family home or family farm as determined in accordance with Section 110.1, with the adjustments permitted by subdivision (b) of Section 2 of Article XIII
<html:span class="ThinSpace"/>
A of the California Constitution and subdivision (f) of Section 110.1, determined as of the
date immediately prior to the date the principal residence or family farm is purchased or transferred to the
transferee.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The applicable of the following amounts:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
If the fair market value, as defined in subdivision (a) of Section 110, of the family home or family farm upon purchase by, or transfer to, the transferee is less than the sum of the taxable value described in paragraph (1) plus one million dollars ($1,000,000), then zero dollars ($0).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the fair market value, as defined in subdivision (a) of Section 110, of the family home or family farm upon purchase by, or transfer to, the transferee is equal to or more than the sum of the taxable value described in paragraph
(1) plus one million dollars ($1,000,000), an amount equal to the fair market value of the family home upon purchase by, or transfer to, the transferee, minus the sum of the taxable value described in paragraph (1) and one million dollars ($1,000,000).
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
As used in this section, the following terms have the following meanings:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Children” means any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Any child born of the parent or parents, except a child, as defined in subparagraph (D), who has been adopted by another person or persons.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Any stepchild of the parent or parents and the spouse of that stepchild while the relationship of stepparent and stepchild exists. For purposes of this paragraph, the relationship of stepparent and stepchild shall be deemed to exist until the marriage on which the relationship is based is terminated by divorce, or, if the relationship is terminated by death, until the remarriage of the surviving stepparent.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Any son-in-law or daughter-in-law of the parent or parents. For the purposes of this paragraph, the relationship of parent and son-in-law or daughter-in-law shall be deemed to exist until the marriage on which the relationship is based is terminated by divorce, or, if the relationship is terminated by death, until the remarriage of the
surviving son-in-law or daughter-in-law.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Any child adopted by the parent or parents pursuant to statute, other than an individual adopted after reaching 18 years of age.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Any foster child of a state-licensed foster parent, if that child was not, because of a legal barrier, adopted by the foster parent or foster parents before the child aged out of the foster care system. For purposes of this paragraph, the relationship between a foster child and foster parent shall be deemed to exist until terminated by death. However, for purposes of a transfer that occurs on the date of death, the relationship shall be deemed to exist on the date of death.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Eligible transferee” means a parent, child, grandparent, or grandchild of an eligible transferor.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Eligible transferor” means a grandparent, parent, grandchild, or child of an eligible transferee.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Family farm” means any real property under cultivation or which is being used for pasture or grazing, or that is used to produce any agricultural commodity, as that term is defined in Section 51201 of the Government Code as that section read on January 1, 2020.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Family home” or “principal place of residence” means a dwelling
that is eligible for a homeowners’ exemption or a disabled veterans’ exemption as a result of the transferor’s ownership and occupation of the dwelling. “Family home” or “principal residence” includes only that portion of the land underlying the residence that consists of an area of reasonable size that is used as a site for the residence.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Full cash value” means full cash value, as defined in Section 2 of Article XIII
<html:span class="ThinSpace"/>
A of the California Constitution and Section 110.1, with any adjustments authorized by those sections, and the full value of any new construction in progress, determined as of the date immediately prior to the date of a purchase by or transfer to an eligible transferee of real property subject to this section.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
“Grandchild” or “grandchildren” means any child or children of the child or children of the grandparent or grandparents.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
“Real property” means real property as defined in Section 104. Real property does not include any interest in a legal entity. For purposes of this section, real property includes any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
An interest in a unit or lot within a cooperative housing corporation, as defined in subdivision (i) of Section 61.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A pro rata ownership interest in a mobilehome park,
as defined in subdivision (b) of Section 62.1.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A pro rata ownership in a floating home marina, as defined in subdivision (c) of Section 62.5.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
“Transfer” includes, and is not limited to, any transfer of the present beneficial ownership of property from an eligible transferor to an eligible transferee through the medium of an inter vivos or testamentary trust.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The State Board of Equalization shall prescribe, after consultation with the California Assessors’ Association, a form for claiming eligibility. Except
as provided in paragraph (2), any claim under this section shall be filed as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Within three years after the date of the purchase or transfer of real property for which the claim is filed, or prior to the transfer of the real property to a third party, or an eligible transferee no longer occupies the residence, whichever is earlier.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Notwithstanding subparagraph (A), a claim shall be deemed to be timely filed if it is filed within six months after the date of mailing of a notice of supplemental or escape assessment, issued as a result of the purchase or transfer of real property for which the claim is filed.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In the case in which the real property subject to purchase or transfer has not been transferred to a third party, a claim for exclusion under this section that is filed subsequent to the expiration of the filing periods set forth in paragraph (1) shall be considered by the assessor, subject to both of the following conditions:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Any exclusion granted pursuant to that claim shall apply, commencing with the lien date of the assessment year in which the claim is filed.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Under any exclusion granted pursuant to that claim, the adjusted full cash value of the subject real property in the assessment year described in subparagraph (A)
shall be the adjusted base year value of the subject real property in the assessment year in which the excluded purchase or transfer took place, factored to the assessment year described in subparagraph (A) for both of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Inflation as annually determined in accordance with paragraph (1) of subdivision (a) of Section 51.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Any subsequent new construction occurring with respect to the subject real property.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If the assessor notifies the transferee in writing of potential eligibility for exclusion from
change in ownership under this section, a certified claim for exclusion shall be filed with the assessor within 45 days of the date of the notice of potential eligibility. If a certified claim for exclusion is not filed within 45 days, the assessor may send a second notice of potential eligibility for exclusion, notifying the transferee that a certified claim for exclusion has not been received and that reassessment of the property will commence unless a certified claim for exclusion is filed within 60 days of the date of the second notice of potential eligibility. The second notice of potential eligibility shall indicate whether a certified claim for exclusion that is not filed within 60 days will be subject to a processing fee as provided in paragraph (2).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If a certified claim for
exclusion is not filed within 60 days of the date of the second notice of potential eligibility and an eligible transferee subsequently files a claim and qualifies for the exclusion, the assessor may, upon authorization by a county board of supervisors, require an eligible transferee to pay a one-time processing fee, collected at the time the claim is submitted, and reimbursed by the assessor if the claim is ineligible. The fee shall be subject to the provisions of Chapter 12.5 (commencing with Section 54985) of Part 1 of Division 2 of Title 5 of the Government Code and shall not exceed the amount of the actual and reasonable costs incurred by the assessor for reassessment work done due to failure to file the claim for exclusion or one hundred seventy-five dollars ($175), whichever is less.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
After consultation with the California Assessors’ Association, the board shall, by emergency regulation, adopt regulations and produce claim forms and instructions necessary to implement this section and Section 2.1 of Article XIII
<html:span class="ThinSpace"/>
A of the California Constitution.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any emergency regulation prescribed, adopted, or enforced pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the
Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.
</html:p>
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<ns0:BillSection id="id_B1B6916E-E5F0-4A07-84F1-05E3BFBEEA29">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 63.2.1 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_DEC27B16-E5DB-453F-831E-1057D314250F">
<ns0:Num>63.2.1.</ns0:Num>
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<ns0:Content>
<html:p>A change in ownership shall not include a transfer of real property described in paragraph (1) or (2) of subdivision (a) of Section 63.2 between eligible transferees, as defined by paragraph (7) of subdivision (c) of Section 63.1, within the one-year period described in subparagraph (A) of paragraph (1) of subdivision (a) of Section 63.2.</html:p>
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<ns0:BillSection id="id_B7591C1E-712C-46B9-8104-86FB13457304">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:Content>
<html:p>If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.</html:p>
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<ns0:Num>SEC. 4.</ns0:Num>
<ns0:Content>
<html:p>Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_B3F1EDE1-2500-493D-9494-083245029D9A">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:Content>
<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
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