In the State of California, real property is reassessed at market value when sold or transferred. Property taxes can sometimes increase dramatically as a result. There are only a few types of transfers between family members that may be excluded from reassessment: parent to child, child to parent, grandparent to grandchild, and between spouses or registered domestic partners. Transfers between siblings, cousins, aunts, uncles, and any other relatives will be reassessed. Mark the boxes in Part 1 of form BOE 502-A, Preliminary Change of Ownership Report (PCOR), that apply to the transfer. See our PCOR tutorial for help filling out the form.
It may be beneficial for the new owner not to claim the exclusion and instead accept a reassessment. We suggest you consult with a real estate or estate planning expert for advice before claiming any exclusion.
Proposition 58: Parent/Child Exclusion
Proposition 58 amended the California Constitution to exclude from reassessment transfers from parent to child or child to parent. Fill out form BOE 58-AH, Claim for Reassessment Exclusion for Transfers Between Parent and Child, located on the forms page.
Proposition 193: Grandparent to Grandchild Exclusion
Proposition 193 extends the Proposition 58 exclusion to certain transfers of real property from grandparent to grandchild if the parent of the grandchild is deceased. Fill out form BOE 58-G, Claim for Reassessment Exclusion for Transfer From Grandparent to Grandchild, located on the forms page. This exclusion does not apply to transfers from grandchild to grandparent.
The transfer of property between spouses or registered domestic partners does not result in a reappraisal for property tax purposes. This includes transfers resulting from divorce or death. No additional forms are necessary, but proof of the relationship may be required. This may include Divorce Decrees, Marriage Certificates, Death Certificates, or other documents.
Death of a Property Owner
Upon death of a person owning property, interest passes to the decedent's heirs effectively on the date of death. However, a document must be recorded to transfer ownership. An attorney should be consulted to discuss the specific facts of your situation. Form BOE 502-D, Change in Ownership Statement - Death of Real Property Owner, should be filed with the Assessor’s Office within 150 days (about five months) of the death. A separate statement may be needed for each parcel of real property owned by the decedent. If the property is going to the children or grandchildren of the deceased, a reassessment exclusion may apply.
To see if you qualify for any reassessment exclusion, contact our office.