Revenue and Taxation committee advances disaster, housing and energy tax measures; several proposals fail or are left on call

The California Senate Committee on Revenue and Taxation met in Sacramento on May 20 and considered 21 bills covering property-tax rules after disasters, conformity with federal retirement-savings rules, tax incentives for teachers and home hardening against wildfires, exemptions for firefighting equipment, and other revenue measures.

The committee approved or put on call multiple bills for referral to the Senate Appropriations Committee, left several on hold for later budget work, and rejected or tabled measures it deemed costly or insufficiently targeted. Major actions included votes to advance bills to appropriations on disaster-related property-tax relief, a conformity change to allow rollovers from 529 accounts to Roth IRAs, and a package of housing and manufacturing proposals. Other items — notably proposals to create tax credits for home and retail security and a broad increase to the homeowner’s exemption for people 62 and older — failed or were sent back for reconsideration.

Why it matters: The committee’s decisions affect how California will tax property and untaxed settlements after disasters, how families may use unused college-savings for retirement, and whether the state will subsidize home hardening, solar adoption, or industry investment. Several measures carried potential near-term budget impacts that senators flagged during debate.

Key outcomes and highlights

- Disaster property-tax base transfers: The committee advanced a bill to allow counties to extend the five-year Prop 50 transfer window for properties damaged by a governor-declared disaster by up to three additional years for affected properties. Proponents said the measure responds to prolonged rebuilding timelines caused by large wildfires and post‑disaster permitting and insurance delays. Vote recorded at committee: passed to appropriations (3–0, on call).

- Conforming state law to Secure Act (529-to-Roth): SB 657 would align California law with the federal Secure Act provision allowing rollovers from 529 qualified tuition plans into Roth IRAs.…