Page 39 - Homeowners Manual - San Luis Obispo County

PROP 58/193 TRANSFERS BETWEEN PARENT AND CHILD
What are Propositions 58 and 193?

Proposition 58, effective November 6, 1986, is a constitutional amendment approved by the voters of California
which excludes from reassessment transfers of real property between parents and children. Proposition 58 is
codified by section 63.1 of the Revenue and Taxation Code.

Proposition 193, effective March 27, 1996, is a constitutional amendment approved by the voters of California
which excludes from reassessment transfers of real property from grandparents to grandchildren, providing that
all the parents of the grandchildren who qualify as children of the grandparents are deceased as of the date of
transfer. Proposition 193 is also codified by section 63.1 of the Revenue and Taxation Code.

In the State of California, real property is reassessed at market value if it is sold or transferred and property
taxes can sometimes increase dramatically as a result. However, if the sale or transfer is between parents and
their children, or from grandparents to their grandchildren, under limited circumstances, the property will not be
reassessed if certain conditions are met and the proper application is timely filed.

These propositions allow the new property owners to avoid property tax increases when acquiring property
from their parents or children or from their grandparents. The new owner’s taxes are calculated on the
established Proposition 13 factored base year value, instead of the current market value when the property is
acquired.

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