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1. How will Proposition 19 affect Base Year Value Transfers for severely disabled homeowners?

Proposition 19, The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, was passed by California voters on November 3, 2020. The provisions of Proposition 19 that relate to Base Year Value Transfers for severely disabled homeowners become operative on April 1, 2021. Please visit the State Board of Equalization’s website at https://boe.ca.gov/prop19/ for the latest information available on Proposition 19 and its impact on this exclusion.

2. What are the detailed requirements for Proposition 110 exclusion?

1. You or a spouse residing with you must be severely and permanently disabled when the original property was either sold or modifications were completed.
2. Both your origianal and replacement property must be eligible for a homeowners' or disabled veterans' exemption and the replacement property must be your principal residence.
3. The replacement property must be of equal or lesser value than the original property.
4. The replacement property must be purchased or built within two years (before or after) the sale of the original property.
5. To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase or completion of new construction of the replacement property.
6. The disabled person, spouse, or legal guardian must submit a Physician's Certificate of Disability (Form BOE-62A) with the claim.

3. How many times can I apply for this exclusion?

One time only.

4. If I qualify for Proposition 110 benefits, do I still need to file for a Homeowners' Exemption on the replacement property?

Yes. Homeowners' exemptions are not automatically granted.

5. What tax relief is available for homes modified to improve accessibility?

If qualified, the value of the improvement, addition, modification, or feature that specially adapts a home's accessibility for a severely and permanently disabled person is excluded from property tax assessment.

6. If I make an improvement to my replacement home within two years of purchase, can I get additional tax relief for the new construction?

Yes, as long as the total amount of your purchase and the new construction does not exceed the market value of the original property at the time of its sale.