The California Senate Revenue and Taxation Committee convened on May 14, 2025, to discuss several proposed bills aimed at addressing retail theft and property tax reform. The most significant proposal was Senate Bill 665, which seeks to establish an annual tax credit for retail businesses that invest in security measures to combat rising theft rates.

Senator Choi, the bill's author, emphasized the growing problem of retail theft in California, which has led many businesses to either relocate or shut down. He argued that the costs associated with security measures, such as cameras and alarm systems, are substantial and often passed on to consumers through higher prices. SB 665 proposes a tax credit of up to $10,000 for businesses that implement these security measures, aiming to alleviate the financial burden and support local businesses.

Supporters of the bill, including representatives from the California Alarm Association, highlighted the necessity of such measures in light of increasing crime rates. They argued that the bill would help protect small and mid-sized businesses, which are often more vulnerable to theft than larger corporations.

However, the bill faced opposition from the California Tax Reform Association, which argued that the responsibility for protecting against theft should fall on businesses themselves, not taxpayers. Critics expressed concerns about the potential impact on the state budget, suggesting that providing subsidies to businesses could divert funds from other essential services.

In addition to SB 665, the committee also reviewed Senate Bill 666, which proposes a tax credit for homeowners who install security systems to protect their residences. This bill aims to address the rising incidence of home burglaries and provide financial assistance to residents investing in their safety.

Lastly, Senate Bill 723 was introduced to update California's property tax law by raising the exemption threshold for low-value properties from $10,000 to $25,000. This change is intended to reduce the tax burden on small businesses and encourage economic growth by allowing them to reinvest in their operations.

The committee's discussions highlighted the ongoing challenges California faces with crime and the financial pressures on both businesses and residents. The outcomes of these bills will be crucial in shaping the state's approach to retail theft and property taxation in the coming years. The committee will continue to evaluate these proposals as they move forward in the legislative process.