Imperial County Assessor's Office

940 W. Main Street Suite 115

El Centro CA 92243

Main Ph:(442) 265-1300

Email: assessor@co.imperial.ca.us

Parent and Child Proposition 58 Exclusion

Proposition 58, effective November 6, 1986, was 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(b)(1) of the Revenue and Taxation Code.

A detailed explanation of these exlusion is available throught the California State Board of Eqaulization website, please follow the link: Parent-Child and Grandparent-Grandchild exclusion.

By applying for these exclusions, property owners may be able to avoid property tax increases when acquiring property from their parents, children or grandparents. In the State of California, real property is reassessed at market value if it is sold or transferred and property taxes can increase dramatically as a result. However, if the sale or transfer is between parents and their children or is from a grandparent to a grandchild, the property will not be reassessed if certain conditions are met and the proper application is filed

General Requirements

  • A properly completed, state approved application must be filed with the Assessor as soon as possible following the transfer. An applicant may also be required to provide additional documentation to support their claim.
  • The application must be filed with the assessor’s office within three (3) years of the date of transfer (which is the date of death if the transfer is the result of a death) in order to qualify for the exclusion retroactive to the date of filing. The application must be filed prior to transferring the property to a third party.
  • Applications may be filed at any time after the three year deadline; however, those filed after the three (3) year deadline will only become effective for the lien date after the assessment year in which they are filed and will not be retroactive to the date of transfer.
  • If a notice of supplemental or escape assessment is mailed after the deadline for either of these periods, then the transferee has an additional six months from the date of the notice to file a claim. For example, if a taxpayer received a Notice of Supplemental Assessment for a parent –child transfer dated January 1, 2003, and then received a Notice of Proposed Escape Assessment dated April 1, 2006, the taxpayer would have six months from April 1, 2006 to file a claim with the Assessor.
  • Parent to Child Exclusion Claims

    Owners may claim the Parent-Child Exclusion on the residence of a parent or child that has been sold or transferred to them. In other words, the exclusion applies whether the transfer is from parent to child, or from child to parent. They may also claim the exclusion on other real property up to $1,000,000 in assessed value, if transferred between a parent and a child.

    The exclusion applies to sales and transfers both from parents to their children and from children to their parents. It also applies to transfers between a trust and a parent or child. It does not apply to sales and transfers to and from partnerships, corporations, or other legal entities.

    The exclusion only applies to sales and transfers that occurred after November 6, 1986. If a transfer occurs because someone dies, the date of death is considered to be the date the property transferred.

    A "child" for purposes of Parent –Child Exclusion under Proposition 58 includes:

    Spouses of eligible children are also eligible until divorce or, if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law.

    An application must be file with the Assessor, please follow the link for the appropiate form: Prop58. If you need more information contact the Assessor office at (442) 265-1300 (8am to 5pm), or visit us at 940 W. Main Street Suite 115 El Centro CA 92240 (8am to 5pm). (ref. R&T 63.1)

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