Californians who have owned their properties for years understand the benefits of Proposition 13: their property taxes are based upon the property's purchase price (with only small allowable annual increases), as opposed to the property's current value. But upon a transfer, the property gets reassessed at its current value. Consequently, people in California often wind up with higher property taxes when they sell one property and buy another, even if the new property costs exactly what they received for the sale of the old property.
When an owner is forced to "sell" as a result of the ...
A few months ago, I had a property owner call me and explain he had recently sold his property to a utility company under threat of eminent domain. He took the sale proceeds and invested the money in a comparable replacement property. When he applied to transfer his Proposition 13 base year value to the replacement property, the County assessor denied his request. The assessor explained that because the sale under threat of eminent domain was not to a public entity, it did not fall within the exception that allows for a transfer of the base year value.
I was a bit surprised by the assessor's ...
Here's some news making headlines this week in the eminent domain community:
- The Base Year Transfer Rule Under Threat of Eminent Domain: A new published California Court of Appeal decision -- Duea v. County of San Diego -- came out yesterday addressing whether a property owner can transfer their base year value to a replacement property when the owner sells its property to a private developer under threat of eminent domain. The Court held that the owner had some procedural missteps which doomed the case, but also went on to hold that this type of transfer does not qualify for a base year ...
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