California) state property exempt $7,000. How does it work?

I purchased first home last year in Spring, and I applied for this state property exempt since it's our primary residential home.

I haven't received anything from the state after applying, but I assume they've received it.

What exactly does this do?

I paid our first property tax in Nov last year but it seems like this property exempt didn't do anything?

What exactly am I expecting to see? For 2025 property tax, my property tax will be based on home value less $7,000? Is that how it would work?