Parent- Child Exclusion - Recent Property Tax Developments

Propositions 58 and 193 are constitutional initiatives that provide property tax relief for property transfers between parents and children and from grandparents to grandchildren. The two propositions have made it easier to keep property “in the family.” Proposition 59 states that real property transfers from parent to child or vice versa may be excluded from reassessment. Proposition 193 broadens the tax relief to include transfers between grandparents to grandchildren.

Most recently, effective January 1, 2008 Assembly Bill 402 (Ch. 450, Stats. 2007) amends section 63.1 to extend the parent-child exclusion to transfers between foster parents and foster children. These provisions apply to transfers that occur on or after this date and are not retroactive. To take advantage of the foster child exclusion, you must provide: 1) a certified copy of the court decision regarding the foster child status of the individual, and 2) a certified statement from the appropriate county agency stating that the foster child was not, because of a legal barrier, adopted by the foster parent. Further, an assessor may request legal substantiation of these two items.

It is important to note that in order to obtain the parent-child exclusions, the claim must be filed within three (3) years after the date of purchase or transfer for which the claim is filed or prior to transfer to a third party, whichever is earlier, or within six (6) months after the mailing of the notice of supplemental assessment. Tredway, Lumsdaine & Doyle has handled property tax appeals and can assist you in securing your property tax exclusion to keep your family home within the family.

Article Submitted By: Attorney Pamela Tahim