Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Property Tax Annotations
200.0000 BASE YEAR VALUE TRANSFER
(a) BASE YEAR VALUE TRANSFER – PRINCIPAL RESIDENCE
200.0128 Step Transaction Doctrine. Revenue and Taxation Code section 69.5 allows a person to transfer the base year value from a home that was damaged or destroyed to a home that the taxpayer owned at the time his home was damaged or destroyed if the home was purchased or newly constructed within two years of the sale of the original property. If the home was purchased more than two years prior to the sale of the original property, the assessor should not recognize an arrangement by which the home is sold to a friend and repurchased so as to meet the two-year requirement. The step transaction doctrine allows county assessors to disregard the intermediary steps in what is in substance a single, unitary or indivisible transaction and thereby apply the tax laws to the substance of the transaction and not the form of its steps. C 5/29/2008.