Understanding Exclusions From Reappraisal

Laura Insley's picture

When it comes to selling, purchasing or transferring your real property, most people focus on one number - the price. But there’s another very real number that many forget about - property taxes. In the state of California, for example, when real property is sold or transferred, property taxes can sometimes heighten dramatically. However, you might be able to avoid these increases via propositions that allow exclusions from reappraisal (aka reassessment). Though, trying to navigate your way through the legal jargon can be a bit confusing. Even the most basic real estate concepts are enough to make any layperson’s head spin.

Luckily, our real estate experts, Lorraine Thielen and Linda Hahn, are here to help! Recently, Lorraine and Linda had the opportunity to listen to the County Assessor of Orange County speak about the five different propositions that could exclude your property value from being reassessed. They have graciously put together a brief outline of the props in an attempt to give us a better understanding of these situations.

  • Proposition 60 - Allows base year value transfers within the same counties (intracounty).  One condition of this proposition is that you or your spouse must be age 55 or older, when selling your primary residence and purchasing another primary residence.*
  • Proposition 90 - Allows base year value transfers from one county to another county in the state of California (intercounty), but is at the discretion of each county to authorize such transfers.  It is recommended to contact each county to verify eligibility.
    For the full requirements and more information on Propositions 60/90, visit this page on the CA Board of Equalization (BoE) website.
  • Proposition 110 - Provides property tax relief for severely and permanently disabled claimants when they sell an existing home and buy or build another home. Also, modifications to your current home can fall under Prop 110.*
    For the full requirements and more information on Proposition 110, visit this page on the CA BoE website.
  • Proposition 58 - Excludes from reassessment transfers of real property between parents and children.*
  • Proposition 193 - Excludes from reassessment transfers of real property between grandparents and grandchildren.*

It may not always be beneficial to claim this exclusion, so be sure to consult your estate planner to choose what’s best for your family. For the full requirements and more information on Propositions 58/193, visit this page on the CA BoE website.

The bottom line is this: know your options. The state of California put these propositions in place to help people with the transfer/sell and purchase of real property. One day, you might find yourself in a position to take advantage of these tools, and now that you’re aware they’re available, you’ll be better equipped to make the right decisions for yourself and your family. 

*It is important to note that each of these propositions have different criteria to meet before you are eligible to use them. If you believe you may be eligible, you can also call Assessment Services at 916-274-3350 to find out if you qualify, and how to make a claim.

About Our Experts

Lorraine Thielen & Linda Hahn bring over 25 years of experience to help you buy or sell your home and make informed decisions in today's market. As realtors for RE/MAX TerraSol and specializing in the Orange County market, Thielen and Hahn offer a wealth of real estate knowledge to take the stress out of homebuying/selling. Visit their website for more information and to view current listings.

 

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