An exclusion prevents the Assessor from reassessing a property to its current market value upon a change in ownership or completion of new construction. Exclusions are authorized by constitutional or statutory provisions in the California Revenue and Taxation Code. If you qualify, an exclusion could significantly reduce your property tax liability.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”0px||20px|||” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_tabs _builder_version=”4.16″ global_colors_info=”{}”][et_pb_tab title=”What is an Exclusion?” _builder_version=”4.16″ global_colors_info=”{}”]\n
Under Proposition 13, the Assessor generally reassesses property when there is a change in ownership or new construction is completed. An exclusion is an exception to this rule \u2014 qualifying property owners can avoid reassessment if specific conditions are met.<\/p>\n
A change in ownership exclusion means the property is not reassessed<\/strong> to its current market value when ownership changes through a total or partial transfer of title. Many transfers are automatically excluded after review of the recorded document and the Preliminary Change of Ownership Report. For example, spousal transfers and registered domestic partner transfers (on or after January 1, 2006) are automatically excluded \u2014 no claim form is required, though supporting documentation may be requested.<\/p>\n Other changes in ownership exclusions are available but require a claim to be filed to avoid reassessment. See the Change in Ownership Exclusions<\/strong> tab for details.<\/p>\n A new construction exclusion means that specific improvements are not reassessed<\/strong> to current market value when construction is completed. While the improvements may increase the property value, the additional market value is not assessable because of the exclusion. Most new construction exclusions require a claim to be filed with the Assessor. See the New Construction Exclusions<\/strong> tab for details.<\/p>\n[\/et_pb_tab][et_pb_tab title=”Change in Ownership” _builder_version=”4.16″ global_colors_info=”{}”]\n Due to Proposition 19, new forms are required for change in ownership exclusions occurring after February 16, 2021<\/strong>:<\/p>\n BOE-19-P:<\/strong> Claim for Reassessment Exclusion \u2014 Parent\/Child Transfer<\/a><\/p>\n BOE-19-G:<\/strong> Claim for Reassessment Exclusion \u2014 Grandparent\/Grandchild Transfer<\/a><\/p>\n For more information on Proposition 19, visit our Proposition 19 page<\/a>.<\/p>\n<\/div>\n Effective November 6, 1986, transfers between parents and their children (in either direction) of a principal residence and up to $1 million (taxable value) of other property may be excluded from reassessment, provided a claim is filed and certain requirements are met. This also applies to transfers between a trust and a parent or child. It does not apply to transfers to partnerships, corporations, or other legal entities.<\/p>\n A similar exclusion applies to transfers from grandparents to grandchildren occurring on or after March 27, 1996, under certain conditions \u2014 including the requirement that both parents of the grandchild must be deceased as of the date of transfer.<\/p>\n Forms:<\/strong><\/p>\n BOE-58-AH: Claim for Reassessment Exclusion \u2014 Parent\/Child Transfer<\/a><\/p>\n BOE-58-G: Claim for Reassessment Exclusion \u2014 Grandparent\/Grandchild Transfer<\/a><\/p>\n Resources:<\/strong><\/p>\n Parent\/Child & Grandparent\/Grandchild Exclusion Brochure (PDF)<\/a><\/p>\n Board of Equalization \u2014 Frequently Asked Questions<\/a><\/p>\n Transfers of a co-tenancy interest from one cotenant to another due to the death of one cotenant on or after January 1, 2013 may be excluded from reassessment if certain conditions are met:<\/p>\n – The two cotenants together must own 100% interest in the property A Preliminary Change of Ownership<\/a> form or the Change in Ownership Statement<\/a> must be filed, and the surviving cotenant must sign an Affidavit of Cotenant Residency<\/a>.<\/p>\n Resource:<\/strong> BOE Letter: Change in Ownership Exclusions \u2014 Cotenants (PDF)<\/a><\/p>\n For more information, call (510) 272-3800<\/strong>.<\/p>\n[\/et_pb_tab][et_pb_tab title=”New Construction” _builder_version=”4.16″ global_colors_info=”{}”]\n An owner-builder's newly constructed real property will not trigger a supplemental assessment upon completion if the property is built solely for marketing and sale, and a timely claim is filed. This exclusion defers the assessment date of new construction until the January 1st lien date following completion, unless it is used, rented, occupied, or sold before then.<\/p>\n A claim form must be filed prior to, or within 30 days of, the start of construction<\/strong>.<\/p>\n Builder's Claim for New Construction Exclusion (PDF)<\/a><\/p>\n If the property is subdivided into five or more parcels under the Subdivision Map Act with recorded maps and only single-family residences will be constructed, the exclusion is applied automatically \u2014 no claim required.<\/p>\n For more information, call (510) 272-3787<\/strong>.<\/p>\n For Existing Buildings:<\/strong> The installation of an active solar energy system to an existing structure is excluded from property tax assessment under Revenue and Tax Code Section 73. Qualifying systems include those used for electricity production, water heating, space conditioning, process heat, or solar mechanical energy.<\/p>\n Pipes, ducts, tanks, and other auxiliary equipment used in a solar energy system that also carry energy from other sources are assessable at 75% of market value. Excluded from this benefit are solar swimming pool heaters, hot tub heaters, passive energy systems, or wind energy systems.<\/strong><\/p>\n No claim needs to be filed. The exclusion remains in effect until a change in ownership occurs.<\/p>\n For Initial Buyers of Newly Constructed Buildings:<\/strong> As of September 2008, the solar energy exclusion extends to the initial purchaser of a new building from an owner-builder, provided all conditions are met \u2014 including that the owner-builder incorporated the system in initial construction, did not occupy or lease the building prior to sale, and the buyer files a claim form identifying the value of the solar energy system included in the purchase price.<\/p>\n BOE-64-SES: Initial Purchaser Claim for Solar Energy System Exclusion<\/a><\/p>\n For more information, call (510) 272-3787<\/strong>.<\/p>\n Modifications made to an existing<\/strong> dwelling to make it more accessible to a severely and permanently disabled person are excluded from reassessment if certain conditions are met. The residence must be eligible for the Homeowners' Exemption and the disabled person must be a permanent resident. A claim form including physician's certification of disability must be filed. Swimming pools, spas, and construction features customary for comparable properties are excluded from this benefit.<\/p>\n If the property changes ownership after construction, the disabled-access accommodations are no longer excluded.<\/p>\n Disabled Persons Claim for Exclusion of New Construction<\/a><\/p>\n Property owners who perform construction to an existing<\/strong> property to make it more accessible to severely and permanently disabled persons may be eligible for an exclusion from reassessment. The owner must notify the Assessor prior to, or within 30 days of, the completion of the project<\/strong>. All supporting documents must be filed within six months after completion.<\/p>\n If the property changes ownership after construction, the accommodations are no longer excluded.<\/p>\n BOE-63-A: Claim for Disabled Accessibility Construction Exclusion<\/a><\/p>\n Specified seismic retrofitting and earthquake hazard mitigation features added to existing<\/strong> buildings may be excluded from reassessment. The owner must notify the Assessor prior to, or within 30 days of, completion<\/strong> and certify in writing (or have certified by the contractor, engineer, or architect) the portions of the project attributable to seismic retrofit or earthquake mitigation.<\/p>\n If the property changes ownership after the retrofit, the earthquake mitigation construction is no longer excluded.<\/p>\nNew Construction Exclusions<\/h3>\n
Change in Ownership Exclusions<\/h2>\n
Proposition 19 \u2014 New Forms Required After February 16, 2021<\/h3>\n
Parent\/Child and Grandparent\/Grandchild Transfer Exclusion (Before Feb. 16, 2021)<\/h3>\n
Co-tenancy Change in Ownership Exclusion<\/h3>\n
– The transfer results in the surviving cotenant owning 100% of the property
– The two cotenants owned and continuously resided in the property for one year preceding the date of transfer as their principal residence<\/p>\nNew Construction Exclusions<\/h2>\n
Builder's Inventory Exclusion from Supplemental Assessment<\/h3>\n
Active Solar Energy System Exclusion<\/h3>\n
Disabled Access Exclusion \u2014 Residences<\/h3>\n
Disabled Access Exclusion \u2014 Commercial\/Non-Residential<\/h3>\n
Earthquake Mitigation \/ Seismic Retrofit Exclusion<\/h3>\n