Property taxation: exemption: low-value properties.

Senator Choi's property tax reform legislation proposes raising the maximum exemption for low-value properties from $10,000 to $50,000, allowing county boards of supervisors to exempt properties where tax collection costs would exceed revenue generated.

The measure modifies existing authority for property tax exemptions in two key ways. First, it increases the general exemption ceiling to $50,000 for both real property base year values and personal property full values. Second, it maintains special provisions for possessory interests in public facilities, applying the same $50,000 threshold to temporary uses of fairgrounds, convention centers, theaters, museums and similar venues.

County assessors would retain discretion to either remove qualifying properties from assessment rolls entirely or enroll them with the exemption applied. The State Board of Equalization must collect data on the number of taxpayers receiving exemptions and total assessed value excluded, reporting findings annually to the Legislature beginning June 2027. While current law requires state reimbursement to local agencies for revenue reductions from property tax exemptions, this bill explicitly waives that obligation.