In California, property tax reassessment can be triggered by several events. These events include change in ownership, transfer of property between friends or family members, and completion of new construction or additions to existing buildings. Let’s explore each of these triggers in detail.
1. Change in Ownership: One common trigger for property tax reassessment is a change in ownership. This can occur when a property is sold, transferred, or conveyed to a new owner. It is important to note that even a partial transfer of ownership can trigger reassessment. For example, if one owner transfers their share of ownership to another person, reassessment may be required.
Personal Experience: A few years ago, my parents decided to sell their property to downsize after retirement. The sale of their property triggered a reassessment of its value for property tax purposes. This meant that the new owner would be responsible for paying property taxes based on the reassessed value.
2. Transfer between Friends or Family: Another trigger for reassessment is the transfer of property between friends or family members. However, there are some exceptions to this rule. Transfers of property between parents and their children may be excluded from reassessment if certain conditions are met. This exclusion is commonly known as the “parent-child exclusion.”
Personal Experience: My uncle recently transferred his property to his daughter as a gift. Since it was a transfer between parent and child, it qualified for the parent-child exclusion, and reassessment was not triggered. This allowed his daughter to inherit the property without facing a significant increase in property taxes.
3. Completion of New Construction or Additions: Property tax reassessment can also be triggered by the completion of new construction or additions to existing buildings. It is important to note that only the value of the new construction or addition is added to the existing assessment. The rest of the property’s value remains unchanged.
Personal Experience: Last year, I decided to build a new greenhouse in my backyard. After its completion, the county assessor reassessed the value of my property and added the value of the greenhouse to the existing assessment. This resulted in a slight increase in property taxes, reflecting the added value of the new construction.
To summarize, property tax reassessment in California can be triggered by a change in ownership, transfers between friends or family (with some exceptions), and completion of new construction or additions. These triggers are important to be aware of as they can affect the property taxes you are responsible for paying. It is always a good idea to consult with a local tax professional or the county assessor’s office to understand the specific rules and regulations regarding property tax reassessment in your area.
