Exemptions From California Property Tax Reassessments.

Property taxes are a big deal in California. It is based on the value of the property at the time of transfer and whether the transfer from one owner to another constitutes a change of ownership.

Say you transfer your home into your Living Trust. This is considered a change of ownership, but it is exempt from property tax reassessment under California's Revenue and Taxation Code.

Other kinds of transfers are also exempt.

For example, transfers between spouses or registered domestic partners are exempt. As are transfers from parents to children and grandparents to grandchildren.

For more information on this important topic, read this white paper by Betty T. Yee, acting member of the State Board of Equalization as excerpted below:

"California has over a dozen transfers of real property from one party to another that are excluded from treatment as changes in ownership. California Revenue and Taxation ("R&T") Code Section 60 defines “changes in ownership” as a “transfer of a present interest in real property, including the beneficial use thereof, the value of which is substantially equal to the value of the fee interest.” Generally, a change in ownership subjects the recipient of the property to tax reassessment treatment. Statutory exclusions from change in ownership treatment are enumerated in various sections of the R&T Code."