Base Year Value Transfers for Governor Proclaimed Disasters LTA 2021/026

Base Year Value Transfers for Governor Proclaimed Disasters LTA 2021/026 is a letter from the California State Board of Equalization (BOE) Property Tax Department to county assessors, comparing the three base year value transfers available when real property is substantially damaged or destroyed in a Governor-proclaimed state of emergency.

The letter explains that each transfer was enacted by Constitutional amendment and implemented by statute, and that each has different qualifications:

• Revenue and Taxation Code (RTC) section 69 (Proposition 50): transfer to comparable replacement property in the same county, for all property types.
• RTC section 69.3 (Proposition 171): transfer of a principal residence's base year value to a replacement residence in another county, if that county has adopted an implementing ordinance.
• Article XIII A, section 2.1(b) of the California Constitution (Proposition 19), operative April 1, 2021: transfer of the taxable value of a primary residence to a replacement primary residence anywhere in California.

A quick-reference table compares property type, whether the damaged property must be sold, the purchase or construction period, the value test and the operative date. The letter also states that all three transfers are available to owners of qualifying damaged property. It is not itself a claim: owners request a transfer on the BOE claim forms BOE-65-P, BOE-65-PT or BOE-19-V.

The main readers are owners of real property that was substantially damaged or destroyed by a disaster for which the Governor proclaimed a state of emergency, and the county assessors the letter is addressed to. Which transfer fits depends on the property and the replacement.

• Section 69: owners of any type of real property, if the replacement is in the same county and of the same property type. A licensed manufactured home is not eligible because it has no base year value.
• Section 69.3: individuals whose principal place of residence was damaged by more than 50 percent of its market value, moving to a county that has adopted an ordinance. Partnerships, corporations and other legal entities do not qualify; property held by a qualified individual as trustor or present beneficiary of a trust can.
• Section 2.1(b): owners of a primary residence who are victims of a wildfire or natural disaster and who sold the original residence in its damaged state.

Only the owner of the damaged property can receive relief, and property acquired before the disaster date is not eligible as a replacement. As of May 10, 2021, the letter's list of 14 counties with intercounty ordinances does not include Santa Barbara; ask the Assessor about current status.

The triggering event is substantial damage to or destruction of property in a disaster with a Governor-proclaimed state of emergency; claims follow once a replacement is acquired or built. The letter itself has no filing date, but each transfer sets its own windows.

• Section 69: the replacement must be acquired or newly constructed within five years after the disaster (three years for disasters before July 1, 2003).
• Section 69.3: the replacement must be acquired or newly constructed within three years after the damage, and the claim must be filed within three years after the replacement is acquired or newly constructed.
• Section 2.1(b): the replacement must be purchased or newly constructed within two years of the sale of the original residence. File the claim within three years of the purchase or new construction to receive relief as of the latest qualifying transaction. If that period is missed, relief is prospective, from the lien date of the assessment year in which the claim is filed.

The disaster itself need not fall within two years of the sale or purchase under section 2.1(b).

The letter is not submitted. Claims for the transfers it describes go to the county Assessor on the BOE claim forms.

• Section 69 (same county): the BOE-prescribed claim, BOE-65-P, is available from and filed with the Assessor.
• Section 69.3 (another county): file BOE-65-PT with the Assessor of the county where the replacement property is located.
• Section 2.1(b): file BOE-19-V with the Assessor of the county where the replacement property is located.

The Santa Barbara County Assessor's Forms Library at https://www.countyofsb.org/296/Assessor-Forms has a Disaster Relief section. Questions about the transfer provisions can go to the BOE County-Assessed Properties Division at 916-274-3350. The list of Governor-proclaimed disasters is at www.boe.ca.gov/proptaxes/disaster-list.htm. FillingPDF lets you view and download the PDF; any claim is submitted through the Assessor's channels above.