The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property. For purposes of this limitation, "full cash value" is defined as the assessor's valuation of real property as shown on the 1975–76 tax bill under "full cash value" or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. Existing property tax law defines "newly constructed" and "new construction" to mean any addition to real property since the last lien date and any alteration of land or of any improvement since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use. Existing property tax law, in the case of real property that has been damaged or destroyed by misfortune or calamity, excludes from the definition of "newly constructed" and "new construction" any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction.
Existing property tax law authorizes the owner of property substantially damaged or destroyed by a disaster, as declared by the Governor, to apply the base year value of that property to replacement property reconstructed on the same site of the damaged or destroyed property within 5 years after the disaster if the reconstructed property is comparable to the substantially damaged or destroyed property. Existing property tax law requires the assessor to use a specified procedure in determining the appropriate base year value of the reconstructed property. In that regard, existing property tax law applies the adjusted base year value of the property substantially damaged or destroyed to the reconstructed property as its base year value if the full cash value of the reconstructed property does not exceed 120% of the full cash value of the property substantially damaged or destroyed.
This bill would, for the determination of base year values of reconstructed property for the 2026–27 fiscal year to the 2034–35 fiscal year, inclusive, apply the lesser of either the above-described determination based on full cash value, or the adjusted base year value of the property substantially damaged or destroyed if the size of the reconstructed property does not exceed 110% of the size of the property substantially damaged or destroyed, to the reconstructed property as its base year value. The bill would make its provisions operative only until January 1, 2036.
This bill would make legislative findings and declarations related to a gift of public funds.
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.
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.
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.

Statutes affected:
SB1352: 70 RTC
02/20/26 - Introduced: 70 RTC
04/13/26 - Amended Senate: 70 RTC, 70.5 RTC, 70.5 RTC
SB 1352: 70 RTC