Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2014
Property Tax Annotations
200.0000 BASE YEAR VALUE TRANSFER
(a) BASE YEAR VALUE TRANSFER – PRINCIPAL RESIDENCE
200.0120 Replacement Property. Taxpayer proposes to purchase an 80-acre parcel, subdivide it into four 20-acre lots, sell 3 lots, build a home on the 4th lot, sell his original property, and transfer the base year value of the original property to the one lot and house, within the two year period. The value of the 80 acres plus the new construction would exceed the value of the original property. Thus, the equal or lesser value requirement of Revenue and Taxation Code section 69.5(g)(5) would not be met.
If, at the time of completion of construction and filing a claim for transfer of base year value, the taxpayer had already subdivided the 80-acre parcel into four 20-acre lots and sold 3 of the lots within the two year period required by section 69.5, the equal or lesser value requirement of section 69.5(g)(5) would be met if the value of the replacement dwelling plus the value of the 20-acre lot did not exceed the value of the original property. In that event, the base year value of the original property could be transferred to the 20-acre lot and house. C 11/21/2000.