How to Transfer Your Property Tax Base in California

To transfer your property tax base in California, you must be at least 55, severely and permanently disabled, or a victim of wildfire or a Governor-declared disaster; buy or build a replacement principal residence within two years of selling your original home; and file the correct BOE-19 claim form with the county assessor where the replacement home sits, ideally within three years of the purchase. Proposition 19, effective April 1, 2021, lets qualifying homeowners carry their existing assessed value to a replacement home anywhere in the state’s 58 counties instead of being reassessed at current market value.1Board of Equalization. Proposition 19

Who Qualifies

Three groups are eligible: homeowners who are 55 or older when the original home sells, homeowners who are severely and permanently disabled at any age, and victims of wildfire or a Governor-declared natural disaster whose home has lost more than half its market or improvement value.2California Legislative Information. California Revenue and Taxation Code RTC 69.63California State Board of Equalization. Proposition 19 Fact Sheet Eminent domain is not a qualifying category under Section 69.6, despite occasional confusion on that point.

Age claimants need proof of birth date at the time of the original sale. Disability claimants need a licensed physician or surgeon to complete a Certificate of Disability confirming a severe and permanent impairment.4California State Board of Equalization. Certificate of Disability

Seniors and disabled claimants can use the transfer up to three times in their lifetime. Disaster victims are not subject to that cap, though the transfer is limited to once per qualifying disaster.2California Legislative Information. California Revenue and Taxation Code RTC 69.6

Which Homes Are Eligible

Both properties must be your principal residence. The original home must have been eligible for the homeowners’ exemption or the disabled veterans’ exemption, and the replacement must be occupied and eligible for one of those exemptions when you file.2California Legislative Information. California Revenue and Taxation Code RTC 69.6 Vacation homes, rentals, and investment properties do not qualify on either end.

The replacement must be purchased or newly constructed, meaning acquired in exchange for something of value. A home received as a gift or inheritance is not eligible.5California State Board of Equalization. Proposition 19 Base Year Value Transfer Frequently Asked Questions and Answers The claimant must appear on title to both properties; simply living in the home is not enough.

How Your New Taxable Value Is Calculated

What you owe on the replacement home depends on how its market value compares to your original home’s market value. If the replacement qualifies as equal or lesser value, your old base transfers over with no adjustment. The threshold slides with timing:2California Legislative Information. California Revenue and Taxation Code RTC 69.6

  • Replacement bought before the original sells: up to 100% of the original’s market value.
  • Replacement bought within one year after the sale: up to 105%.
  • Replacement bought in the second year after the sale: up to 110%.

You are not limited to a cheaper home. Buy a more expensive one and the base still transfers, with the market-value difference added on top. The California Constitution gives the formula: new taxable value equals your old base year value plus the gap between the original home’s market value and the replacement’s market value.6California Legislative Information. California Constitution Article XIII A Section 2.1

An example. Your original home has a taxable value of $200,000 and a current market value of $900,000. You buy a replacement worth $1,100,000. The market-value gap is $200,000. Your new taxable value is $400,000, which is your $200,000 base plus the $200,000 gap. Without the transfer, you would be assessed at $1,100,000.

How to File

There is no single universal form. The Board of Equalization publishes a separate claim form for each qualifying category:7California State Board of Equalization. Letter to Assessors 2021/007 Proposition 19 Forms

  • BOE-19-B, for claimants 55 or older.
  • BOE-19-D, for claimants who are severely and permanently disabled. This must be filed with a BOE-19-DC Certificate of Disability signed by your physician.
  • BOE-19-V, for wildfire and natural disaster victims.

File the completed form and supporting documents with the county assessor’s office in the county where the replacement property is located. Most county assessor websites offer the forms as downloadable PDFs.

You have three years from the date of purchase or completion of new construction to file and receive the full benefit, including a retroactive adjustment back to the date of purchase.2California Legislative Information. California Revenue and Taxation Code RTC 69.6 File after the three-year window and the relief only applies going forward from the assessment year you submit; the years you waited are lost.

Timing the Sale and the Purchase

The two-year window runs in both directions. Sell first and buy later, or buy first and sell later, as long as the two transactions fall within two years of each other.8California State Board of Equalization. Proposition 19 Base Year Value Transfer Guidance Questions and Answers

Buying first has a cash-flow catch. Your tax base does not transfer until the original property actually sells. While you own both homes, you pay property taxes on the replacement at its full current market value, and those interim taxes are not refunded once the transfer goes through.8California State Board of Equalization. Proposition 19 Base Year Value Transfer Guidance Questions and Answers Budget for two full-value bills during any overlap.

The two-year deadline is written into the California Constitution and has no exceptions. If new construction is not complete within two years of the sale, the property does not qualify regardless of the circumstances.5California State Board of Equalization. Proposition 19 Base Year Value Transfer Frequently Asked Questions and Answers

Why Claims Get Denied

County assessors review every claim, and a handful of issues account for most denials.5California State Board of Equalization. Proposition 19 Base Year Value Transfer Frequently Asked Questions and Answers

  • The claimant is not on title to both properties.
  • The property is held in a partnership, corporation, or LLC. Trusts can sometimes qualify; other legal entities generally cannot.
  • The replacement home was received by gift or inheritance rather than purchased.
  • Two eligible co-owners each try to claim the benefit on the same transaction. Only one can, and the co-owners must decide between themselves.
  • A parent-child reassessment exclusion was already granted on the original property. The base year value cannot then be transferred under Proposition 19.

Missing disability certificates, gaps in principal-residence documentation, and inactive homeowners’ exemptions also cause delays. Confirm your homeowners’ exemption is active on both properties before you file.