Laws, Regulations & Annotations

B

200.0000 BASE YEAR VALUE TRANSFER

(d) BASE YEAR VALUE TRANSFER – CONTAMINATED PROPERTY

Annotation 200.0525

200.0525 Equal or Lesser Value. For purposes of the equal or lesser value comparison test, Revenue and Taxation Code section 69.4(e)(2)(A) provides that the full cash value of the replacement property cannot exceed 105 percent of the full cash value of the contaminated property if the replacement property is purchased or newly constructed within the first year following the date of sale or transfer of the contaminated property. If a deed for the purchase of a replacement dwelling is recorded any time after a deed evidencing the sale of the original property is recorded, even if both are recorded on the same day, the purchase of the replacement dwelling is presumed to have occurred after the sale of the original property. Thus, if the sale of an original property and the purchase of a replacement dwelling are both recorded on the same day and the deed for the sale of the original property is recorded first, then the purchase of the replacement dwelling occurs after the sale of the original property and the full cash value of the replacement dwelling must meet the 105 percent or less value standard. C 12/29/2009.