Exclusions for Disabled

“Severely and permanently disabled” for purposes of the base year value transfer is defined by Revenue and Taxation Code section 74.3 as: “any person who has a physical disability or impairment, whether from birth or by reason of accident or disease, that results in a functional limitation as to employment or substantially limits one or more major life activities of that person, and that has been diagnosed as permanently affecting the person’s ability to function, including, but not limited to, any disability or impairment that affects sight, speech, hearing, or the use of any limbs.”

To qualify for this exclusion, the following conditions must be met:

• Claimant must be severely and permanently disabled at the time the original property is sold.
• Either the sale of the original home or the purchase or new construction of the replacement home, or both, must occur on or after April 1, 2021.
• The claimant must own and reside in the original property at the time of sale or within two years of the purchase or new construction of the replacement property.
• The original property must have been eligible for the homeowners’ or disabled veterans’ exemption and the replacement property must be eligible for one of these exemptions.
• The original property must be sold, and the replacement property purchased for consideration. Consideration is defined as something of value such as payment of cash, creation or cancellation of debt, or exchange of other property.

A claimant may purchase or newly construct a replacement property of any value; however, any value in excess of the original property’s market value is added to the original property’s transferred base year.  If the replacement property is of equal or lesser value as compared to the original property, then the factored base year value of the original property, plus any applicable annual inflationary adjustments that occurred between the date the original property was sold and date that the replacement property was purchased or new construction completed, becomes the new base year value of the replacement property.

“Equal or lesser value” means that the full cash value (commonly referred to as market value) of the replacement property does not exceed one of the following:

• 100 percent of the original property’s market value if the replacement property is purchased or new construction completed before the sale of the original property,
• 105 percent of the original property’s market value if the replacement property is purchased or new construction completed within the first year after the sale of the original property,
• 110 percent of the original property’s market value if the replacement property is purchased or new construction completed within the second year after the sale of the original property.

If the replacement property’s market value is greater than the original property’s market value, then the amount above the “equal or lesser value” of the original property’s market value is added to the transferred factored base year value.

To file a claim for Prop 19 Transfer of Base Year to Replacement Primary Residence for Severely and Permanently Disabled Persons, please complete and submit the form by utilizing the link below:

https://taxpayer.justappraised.com/dashboard/form/FORM_19_D

Along with the above criteria, a Certificate of Disability must be completed by a licensed physician or surgeon.  The form is available at the following link below:

CAA e-Forms Service Center - San Joaquin: BOE-19-DC

Transfer of Property Tax Base to Replacement Property- Disabled Person, occurring on or before March 31, 2021.

Revenue and Taxation Code section 69.5 allows persons that are severely and permanently disabled to transfer the base year value of their principal residence to a replacement residence located in the same county.  The base year value transfer for disabled persons is commonly referred to as Proposition 110, which was approved by California voters in 1990, and is effective through March 31, 2021. For transfers that occur on or after April 1, 2021, under Proposition 19, see Publication 800-4 Information Sheet, Property Tax Savings: Transfer of Property Tax Base to Replacement Property – Disabled Persons

• Base year value transfers within the same county are intracounty transfers.
• Base year value transfers from one county to another are intercounty transfers. However, an intercounty transfer can only take place if the county where the replacement property is located has an ordinance in place allowing for transfer of a base year value from another county.  (not adopted in San Joaquin)

 The base year value transfer is available under the following circumstances. 

• A person and/or their spouse who is severely and permanently disabled sells their home, which was their principal residence (referred to as the original property), and purchases a replacement residence or builds a new residence (referred to as the replacement property) within two years of the sale of the original property, and
  
• The market value of the replacement property must be of “equal or lesser value” than the original property that was sold. “Equal or lessor value” means 100 percent or less than the original property’s market value if the replacement property is purchased before the sale of the original property. But, if the replacement property is purchased or newly constructed within the first year after the sale of the original property, then the replacement property’s market value can be up to 105 percent of the original property’s market value. And, if the replacement property is purchased or newly constructed within the second year after the sale of the original property, then the replacement property’s market value can be up to 110 percent of the original property’s market value. 
• The original property and replacement property are located in the same county; or if the replacement property is located in another county, the county must have an ordinance accepting a base year value transfer from another county.

To file a claim for Transfer of Property Tax Base to Replacement Property- Disabled Person, occurring on or before March 31, 2021, please complete and submit the form by utilizing the link below:

https://taxpayer.justappraised.com/dashboard/form/FORM_62

Along with the above criteria a Certificate of Disability must be completed by a licensed physician or surgeon. The form is available at the following link below:

CAA e-Forms Service Center - San Joaquin: BOE-62-A

Additional information can be found by visiting the State Board of Equalization’s website at www.boe.ca.gov.