Proposition 110

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Disabled Persons Claim for Transfer of Base-Year Value to Replacement Dwelling

Proposition 110 allows the transfer of the base-year value (Proposition 13 value) of an existing home to a newly purchased or built home. If you or your spouse that lives with you is severely and permanently disabled, you can buy a home of equal or lesser value than your existing home and transfer the assessed value. You also can modify your current home as long as the modifications meet disability requirements without being considered new construction. Once you have filed and received this tax relief, neither you nor your spouse will qualify to receive this benefit again.

If you have been granted a Proposition 60 benefit and then become severely and permanently disabled, you may also qualify for a Proposition 110 benefit. However, a disabled person granted a Proposition 110 benefit first is not eligible for a Proposition 60 benefit later.

Definition

For property tax purposes, a severely and permanently disabled person is defined as "Any person who has a physical disability or impairment, whether from birth or by reason of accident or disease, that results in a functional limitation as to employment or substantially limits one or more major life activities of that person, and that has been diagnosed as permanently affecting the person’s ability to function, including, but not limited to, any disability or impairment that affects sight, speech, hearing, or the use of any limbs."

Eligibility

You are eligible for Proposition 110 relief if you meet all of the following:

  1. You or a spouse residing with you must be severely and permanently disabled when the original property was either sold or modifications were completed.
  2. Both your original and replacement property must be eligible for the Homeowners' Exemption or the Disabled Veterans' Exemption. The replacement property must be your principal residence.
  3. The replacement property must be of equal or lesser value than the original property. The "equal or lesser" test is applied to the entire replacement property, even if the owner of the original property acquires only a partial interest in the replacement property. Owners of two homes may not combine the values of those properties in order to qualify for a larger Proposition 110 benefit.
  4. The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
  5. To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase or completion of new construction of the replacement property.
  6. The disabled person, spouse, or legal guardian must submit form BOE 62-A, Certificate of Disability, with the claim. It must be completed by a licensed physician.

An application must be filed with the County Assessor where the replacement property is located. Forms BOE 62, Disabled Persons Claim for Transfer of Base-Year Value to Replacement Dwelling, and BOE 62-A, Certificate of Disability are available in the Real Property section of the forms page.