In June, 1986, the voters approved Proposition 50, a constitutional measure which authorized the Legislature to permit the transfer of the base-year value of a taxpayer's property that has been substantially damaged or destroyed by a Governor-declared disaster to a comparable replacement property located in the same county.

Following the approval of Proposition 50, the Legislature enacted legislation which implemented the constitutional provisions. These provisions can be found in Section 69 of the Revenue and Taxation Code. Recent Governor-declared disasters include: the Northern California and Landers earthquakes; Southern California floods in 1992, 1993, 1997, and 1998; and the Oakland Hills and Laguna Beach fires.

Section 69 allows a taxpayer, whose property has been destroyed or damaged by a Governor-declared disaster, to transfer his or her property's base-year value to a comparable replacement property purchased or newly constructed in the same county, provided:

• The full cash value of the replacement property does not exceed one hundred twenty percent (120%) of the full cash value of the damaged or destroyed property. However, a taxpayer will not be denied relief if the one hundred twenty percent (120%) benchmark is surpassed. Rather, the Assessor adds to the transferred base-year value, the current market value of the portion of the replacement property's full cash value that exceeds the 120% benchmark.
  
  
• Section 69 provides that the replacement property must be acquired or newly constructed within three (3) years following the disaster. Exception: In 1997, Senate Bill 594 (Stats. 1997, Ch. 353) was enacted, permitting Northridge earthquake victims five (5) years to acquire or construct a replacement property located within the same county.
  
  
• The full cash value of the property substantially damaged or destroyed is the amount of its full cash value immediately prior to the damage or destruction, as determined by the Assessor of the county in which the property is located.
  
  
• Section 69 allows a taxpayer, whose property has been destroyed or damaged by a Governor-declared disaster, to transfer his or her property's base-year value to a comparable replacement property purchased or newly constructed in the same county. Certain restrictions apply, and some replacement properties will not qualify. Before attempting to transfer your base year value under the provisions of Section 69, please call us at (714) 834-2727 for more information.