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
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:
- 1.-Any child born of the parent(s).
- 2.-Any stepchild while the relationship of stepparent and stepchild exists.
- 3.-Any son-in-law or daughter-in-law of the parent(s).
- 4.-Any adopted child who was adopted before the age of 18.
- 5.-Any foster child of a state-licensed foster parent, if that child was not because of a legal barrier adopted by the foster parent before the child aged out of the foster care system.
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)
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