CA SB1164

Excludes accessory dwelling units (ADUs) from property tax reassessment as "new construction" if completed between January 1, 2025 and January 1, 2030, providing a tax break for qualifying ADU construction.

Exclusion lasts for 10 years from the first lien date after construction completion, or until the unit changes ownership, is converted to non-residential use, or the exclusion period ends on January 1, 2041, whichever occurs first.

Property owners must notify the assessor within 30 days of completion and submit an affidavit committing to maintain the unit as residential housing for the duration of the exclusion.

State Board of Equalization must establish the manner and form for claiming the exclusion, and property owners must inform the assessor within 30 days if the unit is converted to non-residential use.

State shall not reimburse local agencies for property tax revenue losses resulting from this exclusion.