Claim for transfer of Base Year Value to replacement Primary Residence for Victims of Wildfire or other Natural Disasters

Beginning April 1, 2021, California law allows an owner of a primary residence who is a victim of a wildfire or other natural disaster to transfer the factored base year value of their primary residence to a replacement primary residence that is located anywhere in California and purchased or newly constructed within two years of the sale of the original primary residence.

The property must have been substantially damaged or destroyed by a disaster for which the Governor proclaimed a state of emergency.

“Victim of a wildfire or natural disaster” means the owner of a primary residence that has been substantially damaged as a result of a wildfire or natural disaster that amounts to more than 50 percent of the improvement value of the primary residence immediately before the wildfire or natural disaster.

If the full cash value of the replacement primary residence is of equal or lesser value than the full cash value of the original primary residence immediately prior to the date of diaster, the factored base year value of the original primary residence becomes the base year value of the replacement primary residence.

If the full cash value of the replacement primary residence is of greater value than the full cash value of the original primary residence immediately prior to the date of disaster, partial relief is available. The difference between the full cash value of the original primary residence and the full cash value of the replacement primary residence will be added to the factored base year value that is transferred to the replacement primary residence.