Home > Lower My Taxes Information about available base year value transfers: Important: Voters passed Proposition 19 in November 2020. The portion of that law that affects base year value transfers for persons over 55, severely disabled, or property damaged by a governor-declared disaster is effective 4/1/2021. Transfers that occur prior to that date fall under the provisions of Proposition 60, 90, 110, and 69, respectively.Transfers that occur on or after 4/1/2021 are subject to the new provisions under Proposition 19. Go to Proposition 19to learn more.Please note that base year value transfers involving properties taken by eminent domain or properties environmentally contaminated are not impacted by Proposition 19. Transferring a Principal Residence Value within a County Proposition 60(Revenue and Taxation Code 69.5) The over-55 principal residence base year transfer is a one-time only benefit with one exception: if a claimant becomes physically and permanently disabled after transferring the taxable valueunder the age requirements, the claimant may transfer the taxable value a second time under the disability requirements (Prop 110), if the move is related to the disability. Additional information may be found on the Board of Equalization’s FAQs. Transferring a Principal Residence Value to a Different County Proposition 90(Revenue and Taxation Code 69.5) Base Year Transfer for Severely and Permanently Disabled Persons Proposition 110(Revenue and Taxation Code 69.5) Property Taken by Eminent Domain or Acquired by a Government Entity Proposition 3(Revenue and Taxation Code 68) Property Substantially Damaged or Destroyed in a Formally Declared Disaster (Revenue and Taxation Code 69) Environmentally Contaminated Property (Revenue and Taxation Code 69.4) Forms
FAQs
How do I transfer property tax base in California Prop 13? ›
Information about available base year value transfers: An application must be filed with the Assessor's Office in order to receive any of these benefits. Base Year Value Transfer Application forms are available online, or you may request a form by calling (916) 875-0750 (8am to 4pm), or by fax at (916) 875-0705.
How does prop 13 work when you sell your house? ›Proposition 13, adopted by California voters in 1978, mandates a property tax rate of one percent, requires that properties be assessed at market value at the time of sale, and allows assessments to rise by no more than 2 percent per year until the next sale.
What is Proposition 13 in California for dummies? ›In 1978, the California Constitution was amended by the voters to restrict increases of property taxes. Proposition 13 requires assessment of each taxable property based on its fair market value and limits a property owner's general levy tax to 1 percent of the assessed value.
What is the factored base year value of prop 13? ›Prop 13 and Factored Base Year Value
The factored base year value (FBYV) of real property is the market value as of 1975 or as established when the property last changed ownership or was modified due to construction. This amount is then increased by no more than 2% each year (ie: factored) to determine the FBYV.
This base year value transfer is available to a person who is age 55 or older that sells their principal residence (referred to as the original property) and buys or builds a replacement residence (referred to as the replacement property) within two years of the sale of the original property.
Does Prop 13 pass to heirs? ›Under Prop 19, the only Prop 13 tax base that can be transferred to your children is that of your principal residence to your child—and then your child themselves must live on the property as their principal residence.
What triggers Prop 13 reassessment? ›Prop 13 rolled back real estate assessments to the March 1, 1975 market values, and limited future property tax increases to a maximum of 2% per year. Generally, transfers of title and new construction are events that trigger reassessments under Prop 13.
Who benefits the most from Prop 13? ›High–Income Homeowners, Therefore, Receive the Greatest Dollar Amount of Tax Relief. Because higher–income households own more, higher–value homes and Proposition 13 tax relief is proportionate to home wealth, the majority of Proposition 13 tax relief (in dollar terms) goes to higher–income households.
How many times can you transfer your property tax base in California? ›An eligible homeowner may transfer the taxable value of their home to a replacement property anywhere within California up to three times.
What is the maximum tax increase for Prop 13? ›California's Proposition 13 caps the growth of a property's assessed value at no more than 2 percent a year unless the market value of a property falls lower.
Why is Prop 13 important to homeowners? ›
Proposition 13 (or "Prop. 13") rolled back most local real estate assessments to 1975 market value levels, limited the property tax rate to 1 percent plus the rate necessary to fund local voter-approved bonded indebtedness, and limited future property tax increases to a maximum of 2% per year.
What year did California pass Proposition 13? ›Proposition 13 (officially named the People's Initiative to Limit Property Taxation) is an amendment of the Constitution of California enacted during 1978, by means of the initiative process. The initiative was approved by California voters on June 6, 1978 by a nearly two to one margin.
What are the rules for Proposition 13 transfer? ›Proposition 13 allows a transfer of primary resident between parent and child without reassessing the tax base of the home. To get the benefit, you filed the appropriate form with your county assessor's office after you prepared and filed the deed transferring the property from a parent to a child.
How to avoid property tax reassessment in California? ›Using The Original Transferor Rule To Delay Reassessment
For example, if A and B Joint Tenants form a revocable trust with each other as beneficiaries, A and B both become Original Transferors. When the property passes to the other upon the death of A or B, the real property is not reassessed.
A property's factored base year value is determined based on the value of the property in 1975 or the last time a reassessment was performed due to a change in ownership or new construction. This amount may be increased by a maximum of 2% per year, and property taxes will be assessed based on this value.
Which proposition allows certain homeowners to transfer their property tax base to another home? ›Proposition 19 is a constitutional amendment that limits people who inherit family properties from keeping the low property tax base unless they use the home as their own primary residence, but it also allows homeowners who are over 55 years of age, disabled, or victims of a wildfire or natural disaster to transfer the ...
How does California property tax transfer for seniors work? ›Owner must be at least 55 years of age. Both original and replacement properties must be utilized as a principal residence. Replacement residence must be purchased or newly constructed within two years of the sale of the original property. Location of replacement home can be anywhere in California.
How do I transfer property from a trust in California? ›The trustee will need to sign the deed, get it notarized, and record it with the county within which the property is situated. Recording the deed officially transfers ownership from the trust to the new owner.
Who pays transfer tax in California buyer or seller? ›In California, sellers traditionally have paid this tax – but they are not legally required to do so. Government authorities do not care who pays the tax as long as it gets paid – so this can lead to disagreements that can negatively impact the sales process.