• Real estate that is transferred from parent(s) to child(ren), or from child(ren) to parent(s) may be excluded from reassessment

• The established Prop. 13 taxable value is not affected by the transfer

• The new owner's taxes are calculated on the established Prop.13 value, instead of the current market value when the property is acquired.

• $1 million limit (taxable value) on transfers of non-principal residence property

• No dollar limitation on the original owner's principal residence

• Generally, transfers between legal entities (i.e., corporations, partnerships) that are owned by parents or children do not qualify

Grandparent-Grandchild Transfers (R&T Section 63.1)

• Real estate that is transferred from grandparent(s) to their grandchild(ren) may be excluded from reassessment

• Parents of the grandchild must be deceased as of the date of transfer

• The established Prop. 13 taxable value is not affected by the transfer

• Taxes are calculated on the established Prop.13 value

• $1 million limit (taxable value) on transfers of non-principal residence property

• No dollar limitation on grandparent's principal residence

• Generally, transfers directly between legal entities (i.e., corporations, partnerships) that are owned by grandparents do not qualify

Property Substantially Damaged by Disaster (R&T Section 69)

• Taxpayer's whose property has been destroyed or damaged in a Governor declared disaster area can transfer the Prop.13 base year value to a comparable property

• Property is "substantially damaged or destroyed" if it sustains physical damage amounting to more than 50% of the property's market value before the disaster occurred

• Damage includes a property's loss in value due to permanently restricted access caused by the disaster

• Residential property must be deemed uninhabitable due to environmental contamination

• Non-residential property must be deemed unusable due to environmental contamination

• A state or federal agency must designate the property as an environmentally hazardous site

• If the owner of the property caused the problem, he/she cannot transfer the base year value to a replacement property

• If the owner was aware of the contamination when the property was acquired, they cannot transfer the base year value to a replacement property

Prop. 60 is a constitutional amendment approved by the voters of California in 1986. It is codified in Section 69.5 of the Revenue & Taxation Code, and allows homeowners who are at least 55-years of age to transfer an existing Prop. 13 factored base year value to a replacement residence located within the same county, if certain qualifying conditions are met.