Board hears home‑hardening bill; staff to issue guidance after gray areas raised

The State Board of Equalization on May 27 heard a presentation on Assembly Bill 1971, a measure proposed to clarify that certain home‑hardening retrofits intended to increase wildfire resilience should not be treated as 'new construction' that triggers reassessment.

Assembly Member Steve Bennett’s staffer, Hannah Ellson, said the bill would direct the BOE to clarify that home‑hardening retrofits that do not change a home’s use or footprint — such as installing ember‑resistant siding, multi‑pane windows, or a Class‑A fire‑resistant roof — should not be treated as new construction for property‑tax purposes. Ellson noted comprehensive home hardening can cost tens of thousands of dollars, and homeowners need certainty that proactive safety investments will not cause tax increases.

BOE staff and members discussed several gray areas that could lead to inconsistent county responses: additions of new structures (sheds, retaining walls, defensive firebreaks), changes affecting a home’s footprint, and extensive rehabilitation that leaves the house substantially equivalent to new. David Young, deputy director of property tax, said BOE staff are evaluating whether to issue guidance or amend Property Tax Rule 463 to reduce ambiguity; the bill itself was held on the Assembly suspense file and will require further work if reintroduced.

Board comment and next steps: Members urged clear guidance for assessors and homeowners and asked BOE staff to collaborate with the assessors’ association and legal counsel to draft practical distinctions between ordinary replacements and taxable new construction. The BOE did not take a formal vote because the bill is not moving this year.