Exclusions

Change in Ownership Exclusions

Parent/Child and Grandparent/Grandchild Transfer Exclusion (Before Feb. 16, 2021)

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.

A similar exclusion applies to transfers from grandparents to grandchildren occurring on or after March 27, 1996, under certain conditions — including the requirement that both parents of the grandchild must be deceased as of the date of transfer.

Forms:

BOE-58-AH: Claim for Reassessment Exclusion — Parent/Child Transfer

BOE-58-G: Claim for Reassessment Exclusion — Grandparent/Grandchild Transfer

Resources:

Parent/Child & Grandparent/Grandchild Exclusion Brochure (PDF)

Board of Equalization — Frequently Asked Questions

Co-tenancy Change in Ownership Exclusion

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:

– The two cotenants together must own 100% interest in the property
– 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

A Preliminary Change of Ownership form or the Change in Ownership Statement must be filed, and the surviving cotenant must sign an Affidavit of Cotenant Residency.

Resource: BOE Letter: Change in Ownership Exclusions — Cotenants (PDF)

For more information, call (510) 272-3800.

New Construction Exclusions

Builder's Inventory Exclusion from Supplemental Assessment

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.

A claim form must be filed prior to, or within 30 days of, the start of construction.

Builder's Claim for New Construction Exclusion (PDF)

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 — no claim required.

For more information, call (510) 272-3787.

Active Solar Energy System Exclusion

For Existing Buildings: 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.

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.

No claim needs to be filed. The exclusion remains in effect until a change in ownership occurs.

For Initial Buyers of Newly Constructed Buildings: 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 — 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.

BOE-64-SES: Initial Purchaser Claim for Solar Energy System Exclusion

For more information, call (510) 272-3787.

Disabled Access Exclusion — Residences

Modifications made to an existing 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.

If the property changes ownership after construction, the disabled-access accommodations are no longer excluded.

Disabled Persons Claim for Exclusion of New Construction

Disabled Access Exclusion — Commercial/Non-Residential

Property owners who perform construction to an existing 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. All supporting documents must be filed within six months after completion.

If the property changes ownership after construction, the accommodations are no longer excluded.

BOE-63-A: Claim for Disabled Accessibility Construction Exclusion

Earthquake Mitigation / Seismic Retrofit Exclusion

Specified seismic retrofitting and earthquake hazard mitigation features added to existing buildings may be excluded from reassessment. The owner must notify the Assessor prior to, or within 30 days of, completion 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.

If the property changes ownership after the retrofit, the earthquake mitigation construction is no longer excluded.

BOE-64: Claim for Seismic Safety Exclusion

Fire Sprinkler and Detection System Exclusion

Fire sprinkler systems, other fire extinguishing systems, fire detection systems, and fire-related egress improvements are excluded from property tax assessment when installed in an existing building. No claim or application is required. However, fire suppression systems installed concurrent with new construction are assessable as part of the new construction. This exclusion does not apply when property changes ownership.

For all New Construction Exclusion inquiries, call (510) 272-3787.