Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2015
Property Tax Annotations
200.0000 BASE YEAR VALUE TRANSFER
(a) BASE YEAR VALUE TRANSFER – PRINCIPAL RESIDENCE
200.0023 Consideration. Revenue and Taxation Code section 69.5 requires that an original property be sold and a replacement property be purchased. The term "purchase" is defined by Revenue and Taxation Code section 67 as requiring consideration. Consideration is not limited to the payment of cash. Consideration could include the exchange of other property, the assumption of a debt, the cancellation of an outstanding debt, or the creation of a debt. Further, nothing in section 67 states that the consideration must be equal in value to the value of the property transferred. While a transfer of property for nominal value should be rejected on the theory that the alleged "purchase" is a sham, the term "purchase" could include a transfer for substantial consideration even though the amount was less than the full cash value of the property received. How "little" consideration is or would be "substantial" consideration is a question of fact to be determined by the assessor on a case-by-case basis, considering all available evidence. C 10/31/2000.