Tax Savings

EXCLUSIONS AND EXEMPTIONS

NEW CONSTRUCTION EXCLUSION FROM SUPPLEMENTAL ASSESSMENT

Completed new construction may be excluded from supplemental assessment under certain circumstances. The property must be intended for sale and the builder must file the necessary form with the Assessor's Office prior to or within 30 days of the start of construction. If the exclusion is approved, an appraisal is not made until the next lien date or until the property is sold, leased or occupied by the builder. For more information or to obtain an application, please call the Assessor's Office or click on downloadable forms to download the form in "pdf" format.

PARENT/CHILD EXCLUSION

Excludes from reassessment transfers of real property from parents to their children, or vice versa, with certain limitations, the principal residence or the remainder of the first $1,000,000 of other real property. Click on downloadable forms. Also click on useful property tax links, BOE - Property Taxes Department, Letters to Assessors, by topic index, Parent/Child Exclusion (Proposition 58).  (PROPOSITION 19 Information)

GRANDPARENT/GRANDCHILD EXCLUSION

Excludes from reassessment transfers of real property from grandparents to their grandchildren, or vice versa, with certain limitations, the principal residence or the remainder of the first $1,000,000 of other real property, if the parents of the children are deceased. Click on downloadable forms and/or useful property tax links, BOE - Property Taxes Department, Letters to Assessors, by topic index, Grandparent/Grandchild Exclusion (Proposition 193)  (PROPOSITION 19 Information)

AGE 55 OR DISABLED BASE YEAR VALUE TRANSFER REASSESSMENT EXCLUSION (PROPOSITION 60/110)

R&T Code Section 69.5. Allows any person who is 55 years of age or older, or their spouse, or who is severely and permanently disabled, as defined, who resides in a property eligible for the Homeowners' Exemption or is currently receiving the Disabled Veterans' Exemption to transfer the base-year value of their principal residence to a replacement dwelling of equal or lesser market value within the same county. Additional qualifications include but are not limited to, the claim shall be filed within 3 years of the date the replacement dwelling was purchased or newly constructed to get an immediate base year assessed value transfer. Claims filed after the 3 year deadline are subject to prospective relief only. The purchase or new construction of the replacement dwelling must occur within 2 years, ahead of or retroactive to, the sale of the original dwelling. If the replacement dwelling is purchased before the original residence is sold, supplemental assessments apply until the original property is sold. “… the base year value of the original property shall not be transferred to the replacement dwelling until the original property is sold.” Other qualifications pertain to manufactured homes and multiple residences, et cetera. Click on downloadable forms. Also click on useful property tax links, BOE - Property Taxes Department, Letters to Assessors, by topic index, Proposition 60/90/110 or link directly to pertinent information here: LTA 2006/056 , LTA 2006/010 , LTA 2004/065 , LTA 2002/019 , LTA 1994/014 , LTA 1991/031 , LTA 1982/050, (PROPOSITION 19 Information).

TRANSFERS OF BASE YEAR ASSESSMENTS TO OTHER COUNTIES REASSESSMENT EXCLUSION

(PROPOSITION 19 Information)

TRANSFERS OF BASE YEAR ASSESSMENTS TO OTHER COUNTIES (PROPOSITION 90/110) REASSESSMENT EXCLUSION

PROP 90 Update:  On December 5^th, 2017, the El Dorado County Board of Supervisors adopted an ordinance repealing Prop 90 effective November 7^th, 2018. The ordinance contained the following provisions:  Please Click Here for Detailed Information.  (PDF Document)

GOVERNOR-DECLARED DISASTER, BASE YEAR VALUE TRANSFER REASSESSMENT EXCLUSION

R&T Code Section 69. (Proposition 50) Owners of property substantially damaged by 50% or more by a Governor declared disaster, may transfer the factored base year value existent just prior to the disaster of such property to another comparable property of like utility, size, function and zoning within the same county. The replacement property must be acquired or newly constructed within five (5) years after the disaster, and have a value of 120% or less of the former value of the damaged property. If the replacement’s value is greater than 120%, that portion of value greater than 120% will be added to the transferred base year assessment. At the time the base year value of the damaged property is transferred to the replacement property, it shall be reassessed at the lower of current market value, or its former factored base year value. If the damage property is rebuilt after the base year value is transferred, the new construction at the old location will be assessed to current market value. The replacement property is subject to supplemental assessment based on the difference between the transferred in base year value, and current assessed value on the regular roll. Click on useful property tax links, BOE - Property Taxes Department, Letters to Assessors, letter number 2007/001 topic index Disaster Relief (Proposition 50 and 171), and letters LTA 87/23, LTA 92/45, LTA 2006/015, LTA 2006/052

R&T Code Section 69.3. (Proposition 171) Owners of principal place of residence property substantially damaged by 50% or more by a Governor declared disaster, may transfer the factored base year value existent just prior to the disaster of such property, to another comparable property of like utility, size, function and zoning, to another principal place of residence property of equal or lesser value located in another county if the receiving county has an ordinance adopted in place allowing such transfer. El Dorado County has not adopted the required ordinance. LTA 2003/074 lists the counties which have the receiving ordinance: Contra Costa, Los Angeles, Modoc, San Francisco, Santa Clara, Solano, Sutter, Ventura. The replacement property must have been acquired or newly constructed within three (3) years of the disaster including land. Equal or lesser value means 105% of the original property’s value if acquired prior to or within the first year of the disaster; 110% if within the second year; 115% if within the third year. Click on useful property tax links, BOE - Property Taxes Department, Letters to Assessors, letter number 2007/001 topic index Disaster Relief (Proposition 50 and 171), and letters LTA 87/23, LTA 94/49, LTA 95/06, LTA 95/16 , LTA 2003/074

ACTIVE SOLAR ENERGY CONSTRUCTION EXCLUSION

R&T Code Section 73. Excludes from "newly constructed" assessment, the construction or addition of any active solar energy system thermally isolated from living space, which provides for the collection, storage, or distribution of solar energy such as domestic water heating, space conditioning, producing electricity, processing heat, or solar mechanical energy. Click on useful property tax links, BOE - Property Taxes Department, Property Taxes Law Guide, Table of Contents, Revenue and Taxation Code Part .05 Implementation of Article XIII A of the California Constitution 1351 T, Section 73. Also Letters to Assessors, letter numbers 80/182, 81/10, 81/71, 81/94, 90/79, 91/51, 95/04, 2008/037, and 2008/071

FIRE SPRINKLER, EXTINGUISHING, DETECTING, EGRESS, CONSTRUCTION EXCLUSION

R&T Code Section 74. Excludes from "newly constructed" assessment, the construction or installation of any fire sprinkler system, fire extinguishing system, fire detection system or fire-related egress improvement to an existing building. Click on useful property tax links, BOE - Property Taxes Department, Property Taxes Law Guide, Table of Contents, Revenue and Taxation Code Part .05 Implementation of Article XIII A of the California Constitution 1351 T, Section 74. Also, Letters to Assessors, letter number 99/44.

DISABLED ACCESS NEW CONSTRUCTION EXCLUSION

R&T Code Section 74.3. Excludes from "newly constructed" assessment, the installation or modification completed after June 6, 1990, to an existing dwelling for the purpose of making it more accessible to a severely and permanently disabled person who is a permanent resident of that dwelling. Click on downloadable forms.
R&T Code Section74.6. Excludes from, "newly constructed" assessment, the installation, removal, or modification completed after June 7, 1994, of any structural component of any existing building or structure to the extent that it is done for the purpose of making the building or structure more accessible to, or more usable by, a disabled person as defined. Click on useful property tax links, BOE - Property Taxes Department, Letters to Assessors, letter number 91/34, 93/05, and/or 94/47 or by topic index Disabled Persons. 

SEISMIC SAFETY CONSTRUCTION EXCLUSION

R&T Code Section 74.5. Excludes from "newly constructed" assessment, seismic retrofitting improvements utilizing earthquake hazard mitigation technologies, constructed on an existing building or structure. Click on downloadable forms. Click on useful property tax links, BOE - Property Taxes Department, Letters to Assessors, letter number 2001/089. 

TENANCIES IN COMMON EXCLUSIONS

California Code of Regulations Rule 462.020. Excludes from reassessment transfers of real property between or among co-owners such as a partition, co-tenancy, co-tenancy to legal entity and others subject to conditions and definitions. Click on useful property tax links, BOE - Property Taxes Department, Property Tax Rules, Rule 462.020. Also Letters to Assessors, letter number 2003/001 topic index Change in Ownership. 

LIFE ESTATES, LEASES, TRUSTS, LEGAL ENTITIES, SECURITY TRANSACTIONS, HOLDING AGREEMENTS EXCLUSIONS

California Code of Regulations Rule 462.060, 462.080, 462.100, 462.160, 462.180, 462.200. See above.

JOINT TENANCY ORIGINAL TRANSFEROR EXCLUSION

California Code of Regulations Rule 462.040. Excludes from reassessment transfers of real property from joint tenants to themselves and others all as joint tenants, tenants in common to themselves as joint tenants, joint tenants to each other's respective trusts, the beneficiaries of which are the respective joint tenants, and transfers by or to the remaining original transferors resulting from such transfers of joint tenants. Click on useful property tax links, BOE - Property Taxes Department, Property Tax Rules, Rule 462.040. Also Letters to Assessors, letter numbers 80/180, 94/59, 2003/77. Contact our office for clarification and elaboration. 

INTERSPOUSAL TRANSFER EXCLUSIONS

California Code of Regulations Rule 462.220. Excludes from reassessment transfers of real property between spouses. Click on useful property tax links, BOE - Property Taxes Department, Property Tax Rules, Rule 462.220. Also Letters to Assessors, letter number 81/152, and 88/15. 

OTHER TRANSFERS EXCLUDED FROM REASSESSMENT

California Code of Regulations Rule 462.240. Excludes from reassessment certain transfers of real property including but not limited to bare legal titles, security interests, trustee substitutions, shares/units in collective investment, contributions to employee benefit plan, reformation or correction of deeds, transfers to minor children by court order, disabled child or ward, mobile home park to tenants pursuant to R&T Code Section 62.1, or 62.2, or transfer of separate property inherited by a surviving domestic partner, as defined in subdivision (b) of section 37 of the Probate Code, by intestate succession upon the death of a registered domestic partner. Click on useful property tax links, BOE - Property Taxes Department, Property Tax Rules, Rule 462.240. Also Letters to Assessors, letter number 2003/77.

EMINENT DOMAIN OR OTHER GOVERNMENTAL ACTION TRANSFERS EXCLUSION

California Code of Regulations Rule 462.500 Excludes from reassessment certain transfers of real property by eminent domain or other governmental action. Click on useful property tax links, BOE - Property Taxes Department, Property Tax Rules, Rule 462.500. Also Letters to Assessors, letter numbers 82/91, 83/35, 85/75, 86/93, 99/87. 

DISASTER RELIEF OR CALAMITY REPLACEMENT CONSTRUCTION EXCLUSION

R&T Code Section 170. Every assessee whose taxable property has been damaged or destroyed by misfortune or calamity may apply for a lowered assessment of that property. The Assessor shall reduce the values appearing on the assessment roll by the percentages of damage or destruction. Upon completion of restoration construction, the Assessor shall enroll the lesser of the property's full cash value or factored base year value. Click on useful property tax links, BOE - Property Taxes Department, Property Taxes Law Guide, Table of Contents, General Provisions, Chapter 2.5 Disaster Relief Section 170 page 1648. Also Letters to Assessors, letter number 2003/001 topic index Disaster Relief (Proposition 50 and 171)

EXEMPTIONS

HOMEOWNERS:

A property owner may claim a Homeowner's exemption in California on a residence that is both owned and occupied at 12:01 a.m. on January 1; or files within 30 days of a change in ownership or new construction for which a supplemental assessment is levied. The exemption reduces your assessed value by $7,000 and reduces the tax bill by at least $70.

It is the homeowner's responsibility to apply for the exemption. To receive the full exemption, you must file with the Assessor's office between January 1 and February 15, or within 30 days of a Notice of Supplemental Assessment. (A late filing is accepted from February 16 to December 10 for 80 percent of the exemption). Your exemption automatically continues each year as long as you continue to own and occupy the property as your primary residence. It is also the homeowner's responsibility to terminate the exemption when no longer eligible. Please contact the El Dorado County Assessor's office for the Homeowner's Exemption form at 530-621-5719.

TOTALLY DISABLED VETERANS:

If you are a Veteran who is rated 100 percent disabled, blind, or a paraplegic due to a service-connected disability while in the armed forces (or if your are the unmarried widow of such a veteran), you may be eligible for an exemption of up to $241,627 off the assessed value of your owner occupied home. Filing period is January 1 through February 15 or within 30 days of the supplemental notice. Late filing February 16 through December 10 is available for 90% of the exemption. An additional 8 prior years can be claimed at 85% of the exemption. If your disability rating from the Veterans’ Administration is delayed, your claim will be granted at the full amount available. Please contact the El Dorado County Assessor's office for the Totally Disabled Veterans Exemption form at 530-621-5732 or click on downloadable forms to obtain a "pdf" of the current form.

VETERANS:

Unlike the Homeowner’s Exemption, a reduction in assessed value of $4,000 may be applied to any assessed property owned by an eligible Veteran if the married Veteran’s total assets do not exceed $40,000, ($20,000 if unmarried) and filed every year from January 1st through February 15th.

NOTE: A property owner may NOT have both a Homeowner's and a Veteran's exemption on the same property. Applications and additional information may be obtained at the Assessor's Office.

WELFARE:

Generally, the Welfare Exemption from local property tax is available for property of nonprofit organizations formed and operated exclusively for those qualifying purposes. Both requirements must be met for the exemption to be granted. The nonprofit organization must be a community chest, fund, foundation, limited liability company, or corporation. For more information, see Publication 149 posted on the State Board's website at www.boe.ca.gov/proptaxes/pubcont.htm. 

APPEALS PROCESS:

Since any increase or decrease in assessed value will impact the amount of taxes you pay, it is very important to contact the Assessor's Office if you feel that the assessed value differs from the market value of your property. We welcome the opportunity to review any information you may have relating to the value of your property. If you have any questions concerning the valuation, please call the Assessor's Office.

If, after talking with the Assessor's Office, a difference of opinion on value still exists, you can appeal to the Assessment Appeals Board (AAB) between July 2 and November 30, or within 60 days of the notice date in the case of an escape assessment or a supplemental assessment. To obtain an Application for Changed Assessment, contact the El Dorado County Assessment Appeal Board (El Dorado County Board of Equalization) at the Board of Supervisors office, 330 Fair Lane, Placerville, CA or telephone 530-621-5654.

OTHER ASSISTANCE PROGRAMS AVAILABLE THROUGH THE STATE

PROPERTY TAX ASSISTANCE FOR SENIOR CITIZENS AND BLIND / DISABLED PERSONS:

The state budget deleted funding for the Homeowner and Renter Assistance program for 2008 claims. Tax assistance law provided direct cash reimbursement by the state for part of the property taxes on the homes of qualified persons with limited total household incomes who are either: (1) 62 or older; (2) blind; or (3) disabled.

Filing for property tax assistance prior claims will not reduce the amount of property taxes owed to the county tax collector nor will it result in a lien being placed on the property. 

FORMS AND INFORMATION:

Claim forms or information regarding the property tax assistance program may be obtained by telephoning the franchise tax board toll free at 1-800-868-4171 For Claimant assistance you can locate the nearest Volunteer Income Tax Assistance (VITA) site at www.ftb.ca.gov.

PROPERTY TAX POSTPONEMENT FOR SENIOR CITIZENS:

The senior citizens property tax postponement law gives qualified persons who are (1) 62 or older; (2) blind; or (3) disabled; with an income of approximately $31,500 or less the option of having the state pay all or part of the taxes on their homes (the property occupied as principal place of residence). The amount of taxes postponed must be repaid to the State of California. The postponed amount becomes due and payable when the individual moves, sells the property or becomes deceased.

In February 2009, the State Legislature indefinitely suspended the State Controller's Office Property Tax Postponement Program. Since that time, the Controller’s Office has been working with the Legislature to restore the program or find alternative ways to assist senior, blind and disabled homeowners with their property taxes. However, the State Controller's Office Property Tax Postponement Program remains suspended.

On September 30, 2011, the Governor signed AB 1090, (Chapter 369, Statutes of 2011) which allows each county, if they wish, to implement a property tax postponement program for properties located in their county. The voluntary county-run property tax postponement program is effective January 1, 2012.

On September 28, 2014, the Governor signed AB 2231 (Statutes of 2014, Chapter 703) which reinstates the State Controller's Property Tax Postponement Program. This program will allow senior citizens and disabled persons with an annual household income of $35,500 or less to apply to defer payment of property taxes on their principal residence. Under this bill, applications may be filed with the State Controller beginning July 1, 2016. Information will be posted to the State Controller's website (http://www.sco.ca.gov/ardtax_prop_tax_postponement.html) as it becomes available.