Exclusions

Revenue and Taxation Code Section 75.12 provides that certain types of new construction can be excluded from supplemental tax assessments. These parcels must be intended for resale, and not rented, leased, occupied or used for any purpose other than as a model home.

Exclusion for Builders

Builders of four or fewer single-family residences, and of other classifications of improvements may qualify to be exempted from a supplemental assessment. To qualify, the builder must notify the assessor within 30 days of starting construction. If the builder does not notify the assessor within 30 days of starting construction, a supplemental assessment for the value of the new construction is assessed to the builder upon completion of construction. If the exclusion is granted, a supplemental assessment is not created until the property is sold, occupied, leased or rented.

Click here for the Builders’ Inventory Exclusion Notice to the Assessor form.
Exclusion for Builders of Five or More Single-Family Residences in a Subdivision

Builders obtaining five or more single-family residential lots that are intended for construction and resale in a subdivision, will be automatically excluded from a supplemental assessment on new construction if the property they are building will be offered for sale, and:

  • it is subdivided into five or more parcels,
  • a map describing the parcels has been recorded, and
  • the zoning regulations or building permits for the parcels require that single-family residences will be constructed on them.

Purchase of Properties with an Existing Builders’ Exclusion

When property under construction transfers, there would be a supplemental assessment for the change in ownership, including the construction completed as of the date of transfer. The new owner/builder must then apply for any exclusion from supplemental assessment for the subsequent construction if the above conditions are applicable.

Click here for the Builders’ Inventory Exclusion Notice to the Assessor form.

Required Notification of First Use of Excluded Property

If the newly constructed property has qualified for exclusion from supplemental assessment as described above, the owner must notify the assessor within 45 days after the earliest of any of the following:

  • The date the property changes ownership by an unrecorded contract of sale.
  • The date the property is leased or rented.
  • The date the property is occupied or used either by the owner or with the owner’s consent except as a model home or in showing for sale or lease.

The failure by the owner to timely notify the assessor of the earliest of the above events will result in a penalty as provided in Section 482 of the Revenue and Taxation Code.

Click here for the First Use of Excluded Property Notice to the Assessor form.

If you are permanently disabled, under certain conditions you may sell your original home and buy or build a replacement of equal or lesser value without reappraisal. This includes changes to an existing home for the purpose of making it more accessible to a severely and permanently disabled resident. For further information, call the Standards Division of the Assessor's Office at (209) 525-6461.
The transfer of the principal place of residence between parents and children (and the transfer of up to $1 million of any other real property between parents and children) is also excluded from reappraisal if an application is timely filed. Transfers between grandparents and grandchildren may also be excluded from reappraisal when both parents of the grandchild are deceased. Applications are available by writing or calling the Assessor's Office at (209) 525-6461.
The transfer of the principal place of residence between parents and children (and the transfer of up to $1 million of any other real property between parents and children) is also excluded from reappraisal if an application is timely filed. Transfers between grandparents and grandchildren may also be excluded from reappraisal when both parents of the grandchild are deceased. Applications are available by writing or calling the Assessor's Office at (209) 525-6461.
The transfer of property between spouses or registered domestic partners does not require a reappraisal for property tax purposes. This includes transfers resulting from divorce or death.
Under certain circumstances owners may avoid property tax increases when they sell their existing home and buy or build a replacement home. You or your spouse must be 55 years of age or older, and the property must be the principal place of residence. In addition, there are limits on the value of the replacement home. If you buy it before you sell, it has to be the same or less value than the house you sold. If on the other hand, you buy after you sell, a house bought in the first year may have up to 105% of the value of the house you sold, or 110% if bought in the second year.

There is no partial exclusion allowed if these values are exceeded. The replacement residence must be purchased within two years from the sale of the original property.

Finally, both the original and replacement properties must be eligible for a Homeowners' Exemption and be located within Stanislaus County.

Click here for additional information and forms.

If a government agency acquires your property, you have the right to retain the existing value and transfer it to a replacement property. The replacement property acquired, and an application form must be filed with the Assessor within four (4 years) from the date of acquisition.

For more information, contact the Standards Division of the Assessor's Office at (209) 525-6461.