Parent-Child Exclusion From Reassessment

The Claim for Reassessment Exclusion for Transfer Between Parent and Child form (BOE-19-P) may be filed when applying for an exclusion on either a primary residence or a family farm. This exclusion prevents all or part of the eligible property from being reassessed to current market value for transfers between parents and children. The exclusion allows the transfer of the parent’s (or child’s) assessed value (Prop. 13 value) to be passed to their child or parent. Depending on the property’s value, there may be a value increase on top of the former assessed value. However, the exclusion generally would still provide a substantial tax savings.

Who is eligible?

This service is for parents and children who transfer eligible property to each other. There are rules and limits on the amount of property value that can be excluded from reassessment as well as on the types of property that can qualify. Please read the instructions on the claim form, or call the Assessor’s Office at (805) 781-5643 for more information.

Is there a charge for this service?

There is no fee for the Parent-Child exclusion provided the claim form is filed in a timely manner. Late filers must pay a fee. Please see the County Administrative Office fee schedule for the current fiscal year.

When and where is this service offered?

This service is available throughout the year during regular business hours except during scheduled holidays.

Location, directions and hours of operation

Click on location name to show hours of operation, directions and phone information

Atascadero Office

Monday - Friday 8-4

6565 Capistrano Avenue
Atascadero, CA 93422

Tel: (805) 461-6143

Fax: (805) 461-6159

New Government Center

Monday - Friday 8-5

1055 Monterey Street Suite D360
San Luis Obispo, CA 93408

Tel: (805) 781-5643

Main Office Fax: (805)-781-5641

Real and Business Property Fax: (805)-788-2042

Public Service/Front Counter Fax: (805)-788-2041

Mapping and Transfers Fax: (805)-781-4034

FAQS

How do I apply?

In order to qualify for this exclusion, a properly completed, state-approved claim form (BOE-19-P) must be filed with the Assessor’s Office. If not filed timely, a processing fee will be applied.

How much exclusion is available?

If the market value of the property exceeds the factored base year value plus $1 million, the amount in excess of this sum will be added to the factored base year value.

Example 1:

A family home has a factored base year value of $100,000. The market value of the property on the date of transfer is $900,000.

The factored base year value plus $1 million ($100,000 + $1,000,000 = $1,100,000). This is more than the current market value ($900,000 - $1,100,000 = $-200,000). The new taxable value is $100,000.

Example 2:

A family home has a factored base year value of $100,000. The market value of the property on the date of transfer is $1,300,000.

The factored base year value plus $1 million ($100,000 + $1,000,000 = $1,100,000). This is less than the current market value ($1,300,000 - $1,100,000 = $200,000). The new taxable value is $300,000. ($100,000 + $200.000 = $300,000)

What property can be excluded from reassessment?

This exclusion applies to either a primary home or a family farm.

Primary Home – the property must be the principal residence of the transferor, and it must become the principal residence of an eligible transferee within one year of the transfer. The eligible transferee must file for either a Homeowners’ Exemption or a Disabled Veterans’ Exemption within one year of the transfer.
Family Farm – the property does not need to be a principal residence. It must be land under cultivation or be used for pasture or grazing, or used to produce any agricultural commodity, as defined.

What happens if the transferee moves out of the property?

This exclusion is only available for the time an eligible transferee is using the property as their principal residence, unless another eligible transferee moves into the property and files for the homeowners’ or disabled veterans’ exemption within one year after the former transferee moves out.

If no other eligible transferee moves in after the first eligible transferee moves out, the property loses the exclusion, and on the upcoming lien date, the property will be valued at the market value on the date of the parent/child transfer, adjusted each year for the inflation factor.

Who qualifies for an exclusion on transfers between parents and children?

This exclusion is for family transfers of eligible property between parents and children that occurred on or after February 16, 2021. “Children” includes natural, step, and in-law relationships as defined by law. It also includes children who were adopted before the age of 18.