Real property taxation.

The California Assembly Committee on Revenue and Taxation proposes modifications to property tax exemption rules, extending filing deadlines for solar energy system exclusions and expanding tax relief provisions to public schools. The legislation amends multiple sections of the Revenue and Taxation Code to revise claim periods and broaden eligibility for property tax benefits.

Initial purchasers of properties with active solar energy systems would have three years from the purchase date to file exclusion claims, with claims submitted after this period applying from the assessment year of filing. This provision takes effect January 1, 2027. The amendments maintain existing definitions of qualifying solar systems while clarifying that dual-use equipment qualifies for 75 percent of the exclusion.

The bill adds public schools to organizations eligible for property tax exemptions and related relief, aligning them with current beneficiaries like colleges, religious institutions, and veterans' organizations. For qualifying properties acquired mid-fiscal year, organizations may receive prorated tax cancellations or refunds by filing claims within specified timeframes. Late applications may qualify for reduced relief of 85-90 percent of taxes exceeding $250.

Local tax officials must implement these expanded provisions, constituting a state-mandated program. The legislation requires state reimbursement to local agencies and school districts for costs incurred from these new administrative duties, following established Government Code procedures.