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.

How can I avoid property tax reassessment in California?

To avoid reassessment, the two cotenants must have owned 100% of the property for one year prior to the death, the property must have been the principal residence for both for one year prior to death, and the survivor must keep 100%. The surviving tenant will need to sign an Affidavit of Cotenant Residency.

How does Prop 58 work?

Proposition 58 allow the new property owners to avoid property tax increases when acquiring property from their parents or children. The new owner’s taxes are calculated on the established Proposition 13 factored base year value, instead of the current market value when the property is acquired.

What triggers property tax 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 I pass my house to my son?

The most common way to transfer property to your children is through gifting it. This is usually done to ensure they will not have to pay inheritance tax when you die. As long as you live for another 7 years after you’ve gifted your property, your children won’t have to pay inheritance.

What triggers reassessment in California?

What are propositions 58 and 193 in California?

Home → Propositions → Propositions 58 and 193. Proposition 58, adopted by California voters in November 1986, allows the transfer of certain property between parents and children without reassessment. Children must file for the Proposition 58 exemption at the time of transfer.

Who is an eligible grandchild in Proposition 58?

Propositions 58/193 [Transfers Between Parent and Child; Grandparent and Grandchild] An eligible “grandchild” for purposes of Proposition 193 is any child of parent(s) who qualify as child(ren) of the grandparents as of the date of transfer.

Where do I file for Proposition 58 exemption?

Children must file for the Proposition 58 exemption at the time of transfer. Complete information about Proposition 58 and the necessary forms are available at your local County Assessor’s office. Proposition 193, adopted in March 1996, allows the transfer of certain properties between grandparents and grandchildren without reassessment.

When was Proposition 193 passed in Howard County?

Proposition 193, adopted in March 1996, allows the transfer of certain properties between grandparents and grandchildren without reassessment. Grandchildren must file for the Proposition 193 exemption at the time of transfer.