Transfer of Property Tax Base for Severely and Permanently Disabled Owners
Proposition 110 provides property tax relief for severely and permanently disabled claimants when they sell an existing home and buy or build another. In addition, the initiative provides relief for modifications that make a home more accessible for a severely disabled person.
Implemented by section 69.5 of the Revenue and Taxation Code it allows the transfer of the base-year value of an existing home to a newly purchased or constructed home. Transfers are allowed within the same county (intracounty) and in select counties, transfers are allowed from one county to another county (intercounty).
Once you have filed and received this tax relief, neither you nor your spouse who resides with you will qualify to receive this benefit again.
To receive Proposition 110 Tax relief, you must file an application with the county assessor where the replacement property is located. If you are filing for the base year value transfer, the claim form is BOE-62, The Disabled Persons Claim for Transfer of Base-Year Value to Replacement Dwelling.
If you are filing for the new construction exclusion on a home that is eligible for the homeowners’ exemption, the claim form is BOE-63, Disabled Persons Claim for Exclusion of New Construction. If you are filing for the new construction exclusion on a structure that is not eligible for the homeowners’ exemption, the form is BOE-63-A, Claim for Disabled Accessibility Construction Exclusion from Assessment.
To qualify for Proposition 110 tax base transfer, a few criteria must be met:
- The claimant must have a severe or permanent physical disability that requires them to move to a new residence to meet the needs of the disability.
- The market value of the replacement residence must be equal to or less than the market value of the residence sold.
- The replacement residence must be purchased within two (2) years either before or after the current residence is sold.
The principle claimant must have a severe or permanent physical disability that requires them to move to a new residence to meet the needs of their disability. The claimant must be an owner of record of both the original and replacement residences.
The replacement residence must be equal to or lesser in value than the original residence. “Equal to or lesser in value” has been defined as: 100 percent of the market value of the original property as of its date of sale if the replacement dwelling is purchased before the original property is sold; 105 percent of the market value of the original property as of its date of sale if the replacement dwelling is purchased within one year after the original property is sold; or 110 percent of the market value of the original property as of its date of sale if the replacement dwelling is purchased between one or two years after the original property is sold.
The replacement residence must be purchased or newly constructed within two years either before or after the sale of the original residence. The purchase or new construction of the replacement dwelling must include the purchase of that portion of land on which the replacement dwelling will be situated. The sale of the original residence must qualify for reassessment under the provisions of California Revenue and Taxation Code Section 110.1
The principle claimant must have ONE of the following:
Received, or was eligible for, a Homeowner’s Exemption
Received a Disabled Veteran’s Exemption on both the original and replacement residences.
Claims must be filed within three years from the date the replacement residence is purchased or newly constructed to receive full relief. Claims filed after the three year time period will receive Prospective Relief only. You must complete the claim form and provide a Certificate of Disability, completed by the claimant and his or her physician. Special rules apply to multi-unit dwellings. Please contact our office at 415-554-5596.