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What is an Exclusion?

An exclusion occurs when the Assessor does not reassess a property upon change in ownership or completion of new construction as generally required under Proposition 13. Exclusions are enacted by constitutional or statutory provisions in the California Revenue and Taxation Code. Your property tax liability could be significantly reduced if you qualify for an exclusion.

Change in Ownership Exclusions

The effect of a change in ownership exclusion is that the property is not reassessed to its current market value when the ownership changes as a result of a total or partial transfer of title.

Many transfers are automatically excluded from reassessment after review of the recorded document and the Preliminary Change of Ownership Report or Change in Ownership Statement. For example, a spousal transfer which adds a spouse, or removes of a spouse from property title due to death, divorce settlement or court decree, would be automatically excluded from reassessment after document verification. A similar exclusion was enacted to benefit registered domestic partners for ownership transfers occurring on or after January 1, 2006. No claim form is required to be filed with our office for the inter-spousal or the registered domestic partner transfer exclusion, however you may be asked to supply us with supporting documentation.

Other changes in ownership exclusions are available but require a claim to avoid reassessment.

New Construction Exclusions

The effect of a new construction exclusion is that the construction of specific improvements are not reassessed to current market value when the construction is completed. New construction exclusions are authorized by constitutional amendment. Consequently, while the improvements may increase the value of the property, the additional market value is not assessable because of the exclusion.

Many of the new construction exclusions require a claim to be filed with the Assessor to avoid reassessment.