California Enacts Reassessment Exclusion for Domestic Partner Transfers

A retrospective change in ownership exclusion is enacted for California property tax purposes. The exclusion applies to a transfer of real property between local registered domestic partners occurring between January 1, 2000 and June 26, 2015.

Eligibility Requirements

To be eligible for a reassessment reversal, the property owner must have been in a registered domestic partnership established by a:

– city;

– county;

– city and county; or

– special district.

The registrants must have been:

– of the same sex at the time of registration, and

– not married or in a registered domestic partnership with any other person at the time of transfer.

Claim Deadline

To receive a reversal of the reassessment for such a transfer, a property owner must file a claim form with the assessor by June 30, 2022. The claimant must provide documentation that:

– names the transferee and transferor as local registered domestic partners; and

– reflects the creation of the local registered domestic partnership on a date prior to or concurrent with the date of the transfer for which a reassessment reversal is requested.

Application Fee

The county may charge a fee, in an amount that does not exceed the actual costs incurred, to recoup its costs related to:

– processing the application; and

– reversing the prior reassessment.

Effective Date of Reversal

The reassessment reversal granted pursuant to a claim applies commencing with the lien date of the assessment year in which the claim is filed.

Ch. 919 (A.B. 2663), Laws 2018, effective September 29, 2018

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AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup