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What triggers a reassessment?
Completion of new construction or a change in ownership (CIO) triggers a reassessment to a new Base Year Value equal to the current fair market value, meaning higher property taxes.
What triggers a Prop 13 reassessment?
Under Proposition 13, that assessed value is determined when the property is sold or transferred, and is not changed until the property changes ownership. Creating, transferring, or terminating a joint tenancy is generally considered a change in ownership, triggering reassessment.
What triggers a property reassessment in California?
Completion of new construction or a change in ownership (CIO) triggers a reassessment to a new Base Year Value equal to the current fair market value, meaning higher property taxes.
Can Prop 13 be transferred?
Proposition 13 Base Year Value Transfers to Replacement Properties. Propositions 60/90: Under certain conditions, persons aged 55 and older may transfer the Prop 13 base year value of their principal residence to a replacement residence.
Does Prop 13 increase property taxes?
Under Proposition 13, the annual real estate tax on a parcel of property is limited to 1 percent of its assessed value. This “assessed value,” may be increased only by a maximum of 2 percent per year, until and unless the property has a change of ownership.
Does inherit property get reassessed?
13, real property in California is generally reassessed at market value only when it is sold or transferred. It also excluded transfers by gift, sale or inheritance between parents and children of a primary residence and up to $1 million in assessed value for other property.
What is a reassessment exclusion?
Claim for Reassessment Exclusion for Transfer Between Parent and Child. When the ownership is transferred between parent(s) and child(men), the property is re-assessable to market value, unless the transfer qualifies for the parent/child reassessment exclusion.
What does Prop 58 mean?
Proposition 58, effective November 6, 1986, is a constitutional amendment approved by the voters of California which excludes from reassessment transfers of real property between parents and children. Proposition 58 is codified by section 63.1 of the Revenue and Taxation Code.
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