Senator Nilo’s bill would let counties extend 5-year window for disaster property tax transfers

Senator Nilo asked a California State Senate committee to advance SB 1053, a measure that would let county boards of supervisors extend the five-year window for transferring property tax base-year value to replacement property after a governor-declared disaster.

"Existing property tax law already provides that the property tax base year value of real property that is substantially damaged or destroyed by a governor declared disaster may be transferred to a comparable property located within the same county that's acquired or newly constructed within 5 years after the disaster as replacement property," Nilo said, arguing that recent wildfires and other large-scale disasters have made that five-year period difficult to meet.

The bill would authorize a county board of supervisors in a county affected by a governor-declared disaster on or after Jan. 1, 2026, until Jan. 1, 2031, to extend the five-year period by up to three additional years for properties located in that county. Nilo said the change is designed to give homeowners more time to rebuild and to let local officials tailor relief to community needs.

Nilo noted prior, similar legislation that reached the Senate floor in previous sessions but stalled in appropriations. "This has been of great benefit to homeowners who are navigating obviously a very difficult time dealing with that disaster and the rebuilding process," he said.

Committee members expressed support. Senator Becker said the bill was "common sense," recounting conversations with Los Angeles homeowners who continue to face credit and payment complications after disaster. The vice chair also urged local control during emergencies, saying local officials "know best" what their communities need.

After brief discussion and no public testimony, the committee moved the bill forward. The clerk called the roll and the committee recorded a unanimous vote to advance SB 1053; the chair announced the bill "is out" and that it will proceed to the Committee on Appropriations.

Why it matters: Under current law, homeowners who rebuild replacement property within five years may keep the original base-year tax value; the bill would permit counties to extend that period by up to three years in affected counties, aiming to reduce a timing barrier to recovery after major disasters.

Next steps: SB 1053 was voted out of the committee and referred to the Committee on Appropriations for further consideration.