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SB 288

Property taxation: change in ownership: family homes and farms.

2025-2026 Regular Session Introduced by Kelly Seyarto

SB 288 exempts family homes and farms from property tax reassessment upon inheritance, reducing sudden tax increases for heirs while decreasing government revenue from property taxes.

From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 29). Re-referred to Com. on APPR.
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Bill Summary · SB 288

Legislative bill overview

SB 288 modifies California's Proposition 13 property tax rules by allowing family homes and farms to be transferred to heirs without triggering a reassessment and resulting property tax increases. Currently, most property transfers—even between family members—reset the assessed value to market value, causing significant tax increases. This bill creates an exception to that rule for qualifying family residences and agricultural properties.

Why is this important

California's property tax system has kept taxes artificially low for long-time owners through Proposition 13's "locked-in" assessments, but this creates a cliff effect when properties change hands. For heirs inheriting family farms or homes, the sudden jump in property taxes can force sales or create financial hardship. This bill directly affects intergenerational wealth transfer and agricultural land preservation in California, with potential impacts on housing affordability and farm viability.

Potential points of contention

  • Revenue impact: Reducing property tax reassessments decreases state and local government revenue, potentially affecting school funding and public services that depend on property tax income
  • Equity concerns: The exemption benefits wealthy families with valuable properties disproportionately, while lower-income families cannot utilize the benefit meaningfully
  • Definition disputes: Questions about what qualifies as a "family home" or "farm" could create loopholes or litigation over eligibility
  • Market distortion: Exempting heirs from reassessment while non-heirs pay full rates may create unequal tax treatment for similar properties in the same area

Compiled from official sources — confirm details with the bill’s official record.

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