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Assessor

Basic changes to base year transfers following the passage of Prop 19

Updated January 5th, 2021 -  Prop 19 passed and the information below is meant to answer basic questions about the changes to base year transfers. 

As the text of the ballot measure reads, here are some of the key changes:

  1. This measure will allow homeowners over 55, the disabled and/or those who lose a principal residence in a disaster or calamity to transfer the assessed value of a principal residence to a replacement principle residence anywhere in the state. (Prior to passage of Prop 19, transfer outside of the county was only allowed to a county accepting transfers, and generally only one transfer was allowed.) Prop 19 increased the number of transfers to three.

  2. If the Fair Market Value (FMV) of the replacement residence is less than the FMV of the original residence, then the transferred base year value is the current assessed value of the original residence.

  3. If the FMV of the replacement residence is greater than the FMV of the original residence, then the transferred base year value is the assessed value of the original residence plus the difference in FMV. In other words, the new assessed value of the replacement principle residence is the assessed value of the original residence plus the difference in fair market value between the original residence and the replacement residence.

    • Example: The original residence has an assessed value of $300,000 and a fair market value of $1,000,000. The replacement residence has a fair market value of $1,200,000. The new assessed value of the replacement residence will be $500,000. This is the original residence assessed value of $300,000 plus the difference in fair market value ($1,000,000 vs $1,200,000).

  4. In order to qualify, at least one of the events, (the sale of the original or the purchase/construction of the replacement) must occur after April 1st. Both the sale of the original and the acquisition of the replacement must be concluded within two years. 

  5. A property owner wishing to transfer a base year value will have to complete an application with the county where the replacement residence is located.

  6. These changes are effective for transfers after March 31, 2021.  

  7. The April 1st date applies to Prop 60 base year transfers.

  8. This ballot measure also modifies Prop 58 transfers between parents and children or grandparents and grandchildren and the effective date of those changes begin February 16, 2021. Until February 16th, parents may still transfer a principal residence and up to $1,000,000 in other property to their children. Until then, there is no requirement that the principal residence be occupied as the principal residence of the transferee. Prop 58 transfers occurring after February 15, 2021 will require that the transferee must qualify and claim either the H/O or Disabled Vet exemption and certify that the transferred residence is their principal residence.  In addition, there is a $1,000,000 cap on the allowed base year value to be transferred. 
    • Example 1- A residence with an assessed value of $300,000 and a market value of $800,000. The difference is less than the $1,000,000 cap and so the Assessor will enroll the $300,000 as the base year value of the transferee child.

    • Example 2 – A residence with an assessed value of $300,000 and a market value of $1,400,000. The difference is more than the cap by $100,000 ($1.400,000 less $300,000 = $1,100,000) so the Assessor will enroll the $300,000 plus the excess $100,000, or $400,000 as the base year value of the transferee child.

This information will be updated as new information becomes available.  

If you have specific questions, please call Assessor Karl Weiland at 530.621.5757, or email karl.weiland@edcgov.us