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.
Proposition 58 (applies to transfers which occurred prior to February 16, 2021)

Revenue and Taxation Code Section 63.1

Proposition 58 provides for the exclusion from reassessment, 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. Application for exclusion must be filed within three years of date of transfer.
Proposition 19 (provisions operative as of February 16, 2021)

Revenue and Taxation Code Section 63.2

Proposition 19 repeals and replaces Proposition 58 with a new exclusion from reassessment for the transfer of a family home between parents and children. It requires partial reassessment if the market value of the family home, at transfer, exceeds the sum of the existing taxable value plus $1 million. To qualify for the exclusion, the transferee is required to occupy the home and file for a Homeowner’s Exemption within one year of the change in ownership.
Proposition 19 provides for exclusion from reassessment, the transfer of a family farm between parents and children. It requires partial reassessment if the market value of the family farm, at transfer, exceeds the sum of the existing taxable value plus $1 million. Proposition 19 eliminates the parent-child exclusion for any property other than the family home or family farm.
Proposition 19 eliminates the parent-child exclusion for any property other than the family home or family farm. Click on link below for application and general information.
Form BOE-19-P
Form BOE-266
Proposition 193 (applies to transfers which occurred prior to February 16, 2021)

Revenue and Taxation Code Section 63.1

Proposition 193 provides for the exclusion from reassessment, the transfer of the principal place of residence between grandparents and grandchildren, and the transfer of up to $1 million of any other real property between grandparents and grandchildren. The grandparent-grandchild transfer exclusion requires that all the parents of the grandchild, who qualify as children of the grandparents, be deceased as of the date of purchase or transfer. Application for exclusion must be filed within three years of date of transfer.
Form BOE-58-G
Proposition 19 (provisions operative as of February 16, 2021)

Revenue and Taxation Code Section 63.2

Proposition 19 repeals and replaces Proposition 193 with a new exclusion for the transfer of a family home, under limited circumstances, between grandparents and grandchildren. The grandparent-grandchild transfer exclusion requires that all the parents of the grandchild, who qualify as children of the grandparents, be deceased as of the date of purchase or transfer. It requires partial reassessment if the market value of the family home, at transfer, exceeds the sum of the existing taxable value plus $1 million. To qualify for the exclusion, the transferee is required to occupy the home and file for a Homeowner’s Exemption within one year of the change in ownership.

Proposition 19 provides for exclusion from reassessment, the transfer of a family farm, in limited circumstances, between grandparents and grandchildren, as described above. It requires partial reassessment if the market value of the family farm, at transfer, exceeds the sum of the existing taxable value plus $1 million. Proposition 19 eliminates the grandparent-grandchild exclusion for any property other than the family home or family farm.

Click on link below for application and general information.
Form BOE-19-G
Form BOE-266
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.
Proposition 60 (provisions operative through March 31, 2021)

Revenue and Taxation Code Section 69.5

Proposition 60 allows a homeowner who is over 55, or disabled, to transfer the base year value of their original primary home to a new home that is acquired or newly constructed within two years of the sale of the original primary residence. There are limits on the value of the replacement home. If a replacement home is purchased before the original home is sold, the replacement home must be the same or lesser value than the original. If the original home is sold before the replacement home is purchased, the replacement home can be up to 105% of the value of the original if purchased within one year, and 110% if purchased within two years. 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. Both the original and replacement properties must be eligible for a Homeowner’s Exemption and be located within Stanislaus County.
Click on the links below for application and general information.
Form BOE-60-AH
Form BOE-62
Proposition 19 (Operative April 1, 2021)

Revenue and Taxation Code Section 69.6

Proposition 19 allows a homeowner who is over 55, or disabled, to transfer the base year value of their original primary home to a new home that is acquired or newly constructed within two years of the sale of the original primary residence. The replacement home may be located anywhere in California and be of any value. If a replacement home is of greater market value than the original, the difference between the full cash values of the replacement and original homes must be added to the transferred base year value of the original home. It allows homeowners who are over 55, or disabled, to transfer the base year value up to three times.
Click on link below for application and general information.
Form BOE-19-B
Form BOE-19-D

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.
Proposition 19 (provisions operative as of April 1, 2021)
Claim for Transfer of Base Year Value to Replacement Primary Residence for Victims of Wildfire or Other Natural Disaster
Proposition 19 allows a homeowner, whose primary home is damaged by a wildfire or natural disaster, to transfer the base year value of that home to a new home that is acquired or newly constructed within two years of the sale of the original home. To qualify for relief, the damage to the original primary residence must be 50% or greater. The replacement home may be located anywhere in California and be of any value. If a replacement home is of greater market value than the damaged home just prior to damage, the difference in the full cash value between the replacement and original homes must be added to the transferred base year value of the original home. Click on link below for application and general information.
Form BOE-19-V