Winter Fires of 2025: real property tax: exemptions and reassessment.

Senators Allen, McNerney, and Pérez have put forward legislation extending property tax relief for victims of the January 2025 wildfires in Los Angeles and Ventura Counties, including the Palisades, Eaton, Hughes, and Kenneth fires. The bill modifies existing disaster relief provisions in California's property tax code to accommodate the extended recovery period these communities face.

Property owners whose buildings sustained substantial damage now have eight years instead of five to transfer their original property's base tax value to reconstructed buildings on the same site. The legislation also doubles the standard 12-month window for requesting property tax reassessments to 24 months for affected properties. Properties that held tax-exempt status before the fires will maintain those exemptions until repairs are completed or the property returns to its previous use, even if fire damage temporarily prevents exclusive use for exempt purposes.

The bill requires county assessors to implement these changes without state reimbursement for lost property tax revenues or administrative costs. While maintaining existing procedures for determining replacement property values and reassessment eligibility, it grants assessors discretion in establishing official damage dates. These provisions will remain in effect through 2033 to support the long-term recovery of impacted areas.

The measure's urgency clause would make these changes effective immediately upon passage to provide timely relief to property owners navigating post-fire rebuilding. The authors frame these extensions as necessary accommodations for the specific circumstances of the January 2025 wildfires and their impact on residents in the affected counties.