Prop19 Parent/Child (Grandparent/Grandchild)

Frequently Asked Questions Effective 2/16/2021

1. Prop 19 makes the previous parent-child exclusion operative for purchases or transfers that occur on or before Feb,15,2021. Since Feb,15,2021 is a state holiday, are transfers that occur on Feb,16,2021 eligible for the previous parent-child exclusion?

Yes, except for transfers of property by inheritance. An example is the date of death of a property owner that does not require a document filing or action. Please read the full explanation in the CA BOE Prop 19 Legal Analysis1.8.2021.

2. Prop 19 requires that a family home continue as the family home of the transferee. Must the family home continue as the family home of all transferees?

No, only one transferee needs to maintain the family home as his or her principal residence. Based on this intent discussed in the language of Prop 19, the CA BOE Prop 19 Legal Analysis1.8.2021 states that more than one child may be the recipient of the family home, and as long as one child maintains the family home as his or her principal residence, the family home may qualify for this exclusion. However, all transferees must be eligible transferees.

3. Prop 19 requires that a family home continue as the family home of the transferee. By what date must a transferee establish the family home as their family home?

The transferee must establish the family home as their family home within one year of the purchase or transfer of the family home.

4. Prop 19 requires that a family home continue as the family home of the transferee. How long must a transferee maintain the property as her family home for continued exclusion?

The exclusion applies only as long as the transferee or another transferee maintains the property as their primary residence. In the event the family home is no longer used as the primary residence of a transferee, the property will be taxed at the factored base year value that the property would have had if the parent-child exclusion not been applied.

5. Prop 19 makes the parent-child exclusion applicable to family farms. What familial relationship will establish a farm as a “family farm”?

The “family farm" is the farm that is transferred between parents and children (or when applicable, between grandparents and grandchildren).

6. Prop 19 makes the parent-child exclusion applicable to family farms. Must a family farm also be the principal residence of the transferee?

No, the family farm does not need to be the principal residence of the transferee to qualify for the parent-child exclusion; however, it does need to continue to be used as the family farm by the transferee in order to continue to receive this benefit.

CA Law defines “family farm: to mean any real property which is under cultivation or which is being used for pasture or grazing, or that is used to produce any agricultural commodity, or as that term is defined in Section 51201 of the Government Code as that section read on January 1, 2020.

7. Prop 19 requires a transferee of a family home to qualify for the Homeowners’ or Disabled Veterans’ Exemption. What is the proper forum for appeal for a transferee denied the Homeowners’ or Disabled Veterans’ Exemption?

A transferee who has been denied the Homeowners' or Disabled Veterans' Exemption must file a claim for refund in the county in which the property is located and, if denied, must file an appeal in superior court.

Assessor