ONE COOL THING.
Each month we’ll send you one cool thing to know about California real estate.
This Month it’s all about Tax Assessment Reappraisals. If you’re thinking about changing how you hold title on your property, first understand how it may impact your property tax assessment. We’ll cover:
- Reassessment: When does it occur?
- Title Transfers: Which transfers trigger a tax consequence?
- Dispute a Reassessment: Learn how to dispute a reappraisal
In San Diego County a property tax reassessment occurs:
1) Upon a change of ownership
2) Upon a transfer of title
Title transfers may trigger a tax consequence and it’s best to check with the Assessor in advance of making changes. Transfers between husband/wife or parent/child are the least likely to cause a reappraisal.
We’ve noted a few title transfers and their effect on reassessments below, and you can also call or visit a local Assessor’s branch office for more information on your unique situation.
Joint Tenancy: Each owner holds the property jointly with the other owners. Upon the death of one owner, the property passes to the surviving joint tenant. For assessment purposes, the termination of joint tenancy (other than husband/wife or parent/child transfers) causes a reappraisal.
Tenancy in Common: Each owner owns a specific % of the property. At death, tenants in common pass their interest in the property to their legal heir. The transfer of a tenancy in common interest will cause a reappraisal, unless it is a husband/wife or parent/child transfer, but only for the interest that has been transferred.
Trusts: In this method of holding title, there is only a reassessment if there has been a change of beneficial interest or control. For example, trusts (i.e. living trusts) are not subject to reappraisal. Irrevocable trusts are reappraisable if the recipient or beneficiary is not the current owner.
Methods of Holding Title: A change in the method of holding title in itself does not cause a reappraisal. For example, if two equal partners incorporate, and each owns 50% of the corporate stock, no appraisal is required. In this case, the proportional ownership has not changed, only the method of holding title.
If you disagree with your reassessed value you can directly dispute it with the Assessment Appeals Board.
Individuals and Businesses can seek appeal during specific dates of the tax fiscal year following a step-by-step guide and by submitting an application. Learn more here.
Is someone you know thinking about buying or selling?
Have them call me! I’ll help them get started.
Laura Sechrist Molenda
Lawyers Title & Escrow, April 2016 http://www.lticsd.com/