Exclusions and Exemptions

 Builders' Exclusion

Certain new construction may be excluded from supplemental assessment. The property must be for sale and the builder must file the necessary claim form with the Assessor's Office prior to or within 30 days from the start of construction. If the form is not filed, a supplemental assessment is sent to the builder upon completion of construction.

 Family Exclusions

The transfer of property between husband and wife usually does not require a re-appraisal for property tax purposes. These husband/wife transfers are automatically excluded from re-appraisal. Other changes in ownership can be excluded from re-appraisal, if a timely claim is filed with the Assessor's Office. Some of the common exclusions requiring that applications be filed include:

 Parent & Child Exclusion Proposition 58

Proposition 58, passed by the voters of California in November of 1986, allows the transfer of a principal place of residence between parents and children (or children and parents) plus the transfer of up to $1 million (factored up base year value) of any other real property, without re-appraisal. A husband and wife could thus transfer $2 million of any other real property. You must file a claim.

 

 Grandparent & Grandchild Exclusion Proposition 193

Proposition 193, passed by the voters of California in March of 1996, allows the transfer of a principal place of residence between grandparents and grandchildren  plus the transfer of up to $1 million (factored up base year value) of any other real property provided that the parents of the grandchildren are deceased or the relationship is otherwise severed. Other factors involved in parent-child transfers also apply. You must file a claim.

 

 Exclusion for Seniors Proposition 60

Person(s) At Least 55 Years of Age Transfer of Base-Year Value to a Replacement Dwelling

This constitutional initiatives passed by California voters. They provide property tax relief by preventing reassessment when a senior citizen sells his/her existing residence and purchases or constructs a replacement residence worth the same or less than the original.

When a senior citizen purchases or constructs a new residence, it is not reassessed, if he/she qualifies. The Assessor transfers the factored base value of the original residence to the replacement residence. Proposition 60 requires that the replacement and the original be located in the same county.

The replacement residence must have been purchased or constructed on or after November 5, 1986 if the original was located in Imperial County. Claims must be filed within three years following the purchase of the replacement residence. You must file a claim.

Section 69.5 of the Revenue & Taxation Code.

 Exemptions

Homeowners: A property owner may claim a Homeowner's exemption in California on a residence that is both owned and occupied at 12:01 a.m. on January 1.  You may also file within 30 days of a change in ownership or new construction that will trigger a supplemental assessment. The exemption reduces your assessed value by $7,000 and reduces the tax bill by at least $70.

It is the homeowner's responsibility to apply for the exemption. To receive the full exemption, you must file with the Assessor's office between January 1 and February 15, or within 30 days of a Notice of Supplemental Assessment. (A late filing is accepted from February 16 to December 10 for 80 percent of the exemption.). Your exemption automatically continues each year as long as you continue to own and occupy the property as your primary residence. It is the homeowner's responsibility to terminate the exemption when no longer eligible.

 Disabled Veterans' Exemption

If you are a California veteran who is rated 100% disabled, blind, or a paraplegic due to a service-connected disability (or if you are the unmarried widow of such a veteran), you may be eligible for an exemption of up to $150,000 off of the assessed value of your home.

 Institutional Exemptions

Property used exclusively for a church, nonprofit college, cemetery, museum, school, or library, may qualify for an exemption. Property owned and used exclusively by a nonprofit, religious, charitable, scientific, or hospital corporation is also eligible.

 Eminent Domain - Proposition 3

State law provides that if a government agency acquires property through condemnation, owners may have the right to retain that property's existing assessed value by transferring it to a replacement property.

Severely and Permanently Disabled Exclusions - Proposition 62, 63 and 63-A

Is a constitutional initiative passed by California voters. It provides property tax relief for severely and permanently disabled persons by allowing the transfer of the base-year value of their existing home to a newly purchased or constructed home within the State of California. It also provides property tax relief by excluding from reassessment the construction, installation or modification completed in order to make a home more accessible to a severely disabled person, whether the base-year value is transferred or not. The construction of an entirely new addition, such as a bedroom or bath, which duplicates existing facilities in the original or replacement dwelling that are not available to the disabled person because of his or her disability, may also be excluded from reassessment.

It enables severely and permanently disabled persons to move to a replacement home or modify their original home to satisfy disability related requirements and/or alleviate the financial burdens caused by the disability.

When a severely and permanently disabled person purchases or constructs a new residence it is not reassessed. The factored base-year value of the original residence is transferred to the replacement residence. If construction, installation or modification is done to specifically satisfy disability related requirements, the construction is not assessed.

The Revenue and Taxation Code defines "a severely and permanently disabled person" as any person who has a physical disability or impairment which results in a functional limitation as to employment, or substantially limits one or more major life activities of that person, and which has been diagnosed as permanently affecting the person's ability to function.

The replacement residence must have been purchased or the construction of additional improvements completed on or after June 6, 1990.

 Totally Disabled Veterans: An Exemption of up to $100,000 of assessed value ($100,000 Exemption) is available to property which constitutes the home of a veteran, or the home of the unmarried surviving spouse of veteran, who, because of injury or disease incurred in military service, is blind in both eyes, has lost the use of two or more limbs, or is totally disabled.  The $100,000 increases to $150,000 of assessed value ($150,000 Exemption) if your household income for last year did not exceed $44,302.  Once granted, the $100,000 Exemption remains in effect until terminated. ANNUAL FILING IS REQUIRED FOR ANY YEAR IN WHICH A $150,000 Exemption is claimed.  The Percent Veterans disabled, blind, or a paraplegic due to a service-connected disability while in the armed forces (or if you are the unmarried widow of such a veteran).

 Totally Disabled: means that the United States Veterans Administration or the military service from which discharged has rated the disability at 100% or has rated the disability compensation at 100% by reason of being unable to secure or follow a substantially gainful occupation.

NOTE: A property owner may NOT have both a Homeowner's and a Veteran's exemption on the same property. Applications and additional information may be obtained at the Assessor's Office.