Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Property Tax Annotations


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B

200.0000 BASE YEAR VALUE TRANSFER

(b) BASE YEAR VALUE TRANSFER – GOVERNMENT ACQUISITION

Annotation 200.0310

200.0310 Calculation. If a four-unit residential-income property (owner resided in one unit) with an adjusted base year value of $160,000 is sold to a governmental entity for $200,000 and the seller purchases a replacement dwelling for $195,000, the adjusted base year value of the acquired property would be $40,000 plus the amount by which the full cash value of the acquired property exceeds 120 percent of the full cash value of the property from which the person was displaced, i.e., 120 percent of $50,000 or $60,000. The $135,000 difference between $60,000 and the new dwelling purchase price of $195,000 would be added to the $40,000 to provide a replacement property adjusted base year value of $175,000.

Should the displaced owner purchase an income producing multi-family residential property of at least three units, the same analysis would apply, but three-fourths of the replacement purchase price and three-fourths of the adjusted base year value of the fourplex would be used in the calculation. C 5/3/1988.