• A Change in Ownership

• New Construction

• Temporary reduction(s) in taxable value in prior tax year(s)
  

• Sales

• Transfers

• Inheritances

Reassessable changes in ownership create a new base year value for the property that is equal to the market value at the time of transfer.

Other changes in ownership are usually excluded from reassessment. Non-reassessable changes in ownership generally include:

• Transfers between husband and wife (including those resulting from death or divorce)

• Security interest transfers (co-signers)

• Changes in the way title is held (transfer from individual(s) to the same individual(s) or trust account)

Other types of transfers may be not be reassessable if they meet certain conditions.

Click here for more information on Parent-Child Transfers, Grandparent-Grandchild Transfers and other types of non-reassessable transfers.

New construction is generally assessable, and may increase the taxable value of your property.

Examples include: New room additions, pools, spas and patio covers. Generally, normal maintenance and repairs are not assessable and will not increase your taxable value.

Click here for more information.

State law requires our office to reappraise property upon change in ownership or completion of new construction. We must issue a supplemental assessment, which reflects the difference between the prior assessed value and the new assessment. This value is prorated based on the number of months remaining in the fiscal year, which ends June 30.

Notices of the supplemental assessments are mailed out to property owners prior to the issuance of the supplemental tax bill or refund if the value is reduced. The taxes or refund based on the supplemental assessment are in addition to the regular annual tax bill.

State law requires that a PCOR be filed with our office with other documents related to the transfer of real estate at the time of recording. A $20 fee will be charged in lieu of this filing. Our office is then required to mail out the form if the PCOR has not been filed. This information is used for the appraisal of property and is not a change of ownership statement available for public inspection.

Click here for more information on Change in Ownership Statements

All new mobile homes purchased after June 30, 1980, and those on permanent foundations are subject to property taxes. As with real property, the assessed value of mobile homes cannot be increased by more than 2% annually, unless there is a change in ownership or new construction.

Mobile homes bought before June 30, 1980 are not subject to property taxes unless license fees become delinquent or the owner voluntary converts to the local property tax roll.

Mobile homes are licensed by the State Department of Housing and Community Development. If you have a question about a mobile home assessment, please call (714) 834-5798.

A taxable possessory interest may exist whenever there is private beneficial use of publicly owned non-taxable real property. These interests are typically found where individuals, organizations or companies lease, rent or use real estate owned by the federal, state or local government agency.

A registered historical property that is encumbered by a "Historical Properties Contract" between the owner and a governmental jurisdiction may be entitled to beneficial property tax treatment under Revenue & Taxation Code Sections 439-439.4, (also known as the Mills Act). Properties assessed under the Mills Act typically see a reduction in property taxes ranging from 15% to 60%.

It is important to understand that a property's mere presence on a register of historical properties does NOT in itself qualify the property for Mills Act treatment, for it must also be encumbered by a Historical Property Contract as specified in the law.

Change in Ownership - Exclusions From Reassessment

Refinancing is not considered a change in ownership.

Any transfer of property between spouses during marriage (or transfers between former spouses after marriage in connection with a property settlement agreement or dissolution) is excluded from the change in ownership reassessment requirement of Proposition 13. In other words, transfers of property between husband and wife should not trigger reassessments. No claim form is required.

Transfers between a parent and his/her child (in either direction) of principle residence and up to $1 million (taxable value) of other property may be excluded from change in ownership reassessment, providing a claim is filed and certain requirements are met. This provision of the law is often referred to as Prop 58.

Click here for more information and to view and print an application.

A similar exclusion was enacted for transfers of property occurring on or after March 27, 1996, in which property is transferred from a Grandparent to a Grandchild (but only in that direction) under certain limiting conditions. Among those limiting conditions are that all children of the grandparents must be deceased as of the date of transfer.

Click here to get more information or print an application.

Any transfer between an individual and a legal entity (or between legal entities) that only results in a change in the method of holding title, and the proportional ownership interests of the transferors and transferees remain exactly the same is excluded from reassessment under Proposition 13.

No claim form is required, however, supporting documentation is often required.

This situation typically occurs when co-borrower(s) are needed to help the primary borrower(s) qualify for a loan. The co-borrowers have no present beneficial interest in the property and only the strength of their credit is being used. A security interest affidavit needs to be filed in order to have the transfer excluded.