Proposition 3: Claim for Base Year Transfer, Acquisition by Public Entity
Proposition 3 is a constitutional amendment passed by California voters that provides property tax relief, under certain conditions, to a person whose property has been taken by eminent domain proceedings, acquisition by a public entity, or governmental action resulting in a judgment of inverse condemnation. Form BOE-68, Claim for Base Year Value Transfer, Acquisition by Public Entity is availible on our Forms page.
When a taxpayer purchases or constructs a replacement property as a result of his/her original property being taken away by governmental action, under certain conditions the Assessor transfers the factored base year value of the original property to the replacement property.
You are eligible for Proposition 3 tax relief if:
- You are the owner(s) of real property that has been taken away by governmental action on or after March 1st, 1975.
- The replacement and displaced properties are comparable in size, utility and function. A replacement property is considered comparable in size and utility only to the extent that it is or is intended to be used in the same manner as the displaced property, and its full cash value does not exceed 120 percent of the award or purchase price paid for the original property. A replacement property is considered comparable in function if it is subject to similar governmental restrictions, e.g., zoning. If the replacement property is not similar in size, function and utility, the excess portion is considered to have undergone a change in ownership and will be subject to reappraisal.
- Title to the replacement and displaced properties are held in exactly the same manner and name.
- The request for tax relief is received in a timely manner. For replacement property acquired on or after January 1st, 1983, a request for relief is considered timely if made within four (4) years of one of the following dates, whichever is applicable:
The displaced (original) property is located in California. The Fresno County Office of the Assessor is responsible for reassessing the replacement property when it is located in Fresno County.
- The date the final order of condemnation is recorded or the date the taxpayer vacates the original property, whichever is later.
- The date of conveyance to the acquiring agency or the date the taxpayer vacates the original property, whichever is later.
- The date the judgment of inverse condemnation becomes final or the date the taxpayer vacates the original property, whichever is later.
What documents will the Assessor require as proof?
The applicant must provide a certified copy of either:
- The final order of condemnation or order of possession showing the effective date upon or after which the acquiring entity is authorized to take possession of the replaced property.
- The recorded deed showing acquisition by a public entity.
- The judgment of inverse condemnation.
- A document that clearly indicates the name of the acquiring agency, the date condemnation proceedings began, and the date of possession by the acquiring agency.
And, all other data requested by the Office of the Assessor.
The Assessor will forward information relative to each claim for property tax relief under this program to the Board of Equalization, which will determine whether more than one claim for such assessment relief has been made and, if so, will notify the appropriate assessor(s).