PROPOSITION 193:

GRANDPARENT-GRANDCHILD EXCLUSION
CLAIM FORMS, INFORMATION &
Proposition 193, approved by voters on March 26,
ASSISTANCE ARE AVAILABLE.
1996, approved an amendment to Article XIIIA of the
California Constitution. Prop 193 extended the
CONTACT
Proposition 58 exclusion to certain transfers of real
THE ASSESSOR’S OFFICE
property between grandparent and grandchild.
(Ask for the “Transfer Section”)
What are the qualifying conditions?
• The transfer must occur on or after March 27,
1996; and
• The parents of the transferee grandchild(ren) COUNTY OF SAN MATEO
must qualify as the children of the transferor ASSESSOR-COUNTY CLERK-RECORDER
grandparents, and both parents of the transferee 555 COUNTY CENTER, FIRST FLOOR
grandchild(ren) must be deceased as of the date REDWOOD CITY, CA 94063
of the transfer.
PHONE:
What is the filing deadline for a Prop 193 claim? (650) 363-4500
The exclusion claim must be filed either (1) within
three years of the purchase or transfer of the FAX:
property, or (2) prior to the subsequent transfer of the (650) 363-1903
property to a third party, whichever is earlier.
However, if the claim is filed within six months after ON THE INTERNET:
the date of mailing of the assessor’s notice of www.care.co.sanmateo.ca.us
supplemental or escape assessment issued as a
result of the purchase or transfer for which the claim Open 8 AM to 5 PM
is filed, the claim will be deemed timely. Further, if
the property has not been transferred to a third party,
the assessor may grant the exclusion prospectively
pursuant to an otherwise untimely claim, if certain Parent-Grandparent or
conditions are met.
Child-Grandchild
  Reassessment
Exclusions:
Propositions 58 & 193

Props 58 & 193 (rev. 11-01)

 INTRA-FAMILY DWELLING EXCLUSIONS:
PROPOSITIONS 58 & 193
Certain closely related family members may qualify
for property tax savings when they transfer some
types of real property between them.
PROPOSITION 58:
PARENT-CHILD EXCLUSION
Proposition 58 amended the California Constitution to
exclude from reassessment certain transfers of real
property (such as sales, gifts, inheritance) between
parent and child, and reaffirmed existing statutes
excluding transfers between husband and wife.
What is the effective date of Proposition 58?
Prop 58 applies to any transfer of real property
between parent and child on or after November 6,
1986, and to transfers between spouses on or after
March 1, 1975.
Who are the “transferor” and “transferee”?
The transferor is the current owner of property being
transferred. The new owner is the transferee.
What is “real property” for purposes of Prop 58?
Real property, also known as real estate, is defined
by Revenue & Taxation Code sections104-105:
“Real estate" or "real property" includes: (a) the
possession of, claim to, ownership of, or right to the
possession of land; (b) all mines, minerals, and
quarries in the land, all standing timber whether or
not belonging to the owner of the land, and all rights
and privileges appertaining thereto; and (c)
improvements, including: (1) all buildings, structures,
fixtures, and fences erected on or affixed to the land;
and (2) all fruit, nut-bearing, or ornamental trees and
vines, not of natural growth, and not exempt from
taxation, except date palms under eight years of age.
Which transfers of real property may qualify?
Props 58 & 193 (rev. 11-01)
• Of real property between spouses; or
• Transfer between parent and child of the principle
residence; or
• Transfer between parent and child of the first
$1,000,000 in value of other real property.
Does the “first $1,000,000 in value” represent the
current market value, or the assessed value?
The value used is the Proposition 13 value (also
called factored base year value) immediately prior
to the transfer date. Basically, this would be the
taxable value on the assessment roll.
Let’s explain these terms. The base year is the year
when the property or portion thereof was purchased,
newly constructed, or underwent a re-appraisable
change in ownership by the current transferor. The
base year value (also called “original base year
value”) is the full market value of the home in that
base year, typically either the purchase price or the
“Proposition 13 value.” Proposition 13 was a 1978
Constitutional amendment to control rising housing
prices. It limited the assessed value of existing
homes to1975-1976 values, limited tax rates to one
percent of assessed value (plus voter-approved
surcharges), and limited inflation-based value
increases to two percent annually. Proposition 13
value is the full market value, adjusted by these
limits. The factored base year value is the original
base year value, adjusted by the annual inflation
factor for each taxable year of the current transferor’s
ownership.
What is meant by “child” under Proposition 58?
 Any child born of the parent; or
 Any stepchild or stepchild’s spouse while the
relationship of stepparent and stepchild exists; or
 Any son/daughter-in-law of the parent; or
 Any child statutorily adopted before the age of 18.
What is meant by “principal residence” under
Proposition 58?
A principal residence is a dwelling for which the
owner-claimant has been granted, in the name of the
parent or the child, either a homeowner’s exemption
(claimant owned and occupied as principal residence
at the time of sale or within two years of the
acquisition of the replacement property) or a disabled
veteran’s exemption (claimant a veteran with service-
related disability and a California resident on January
1 of claim year). Only a reasonable portion of the
land will be considered a part of the principal
residence if the land exceeds the area reasonably
necessary as a site for the residence.
How many parent-child transfers of a principal
residence may qualify under Proposition 58?
There is no limit. However, each transferred
residence must qualify as a principal residence.
Must the property qualify as the principal
residence of both the transferor and the
transferee? No. The residence need only qualify as
the principal residence of the transferor.
May eligible family members combine their
exclusion benefits? Yes. For example, a mother
and a father could combine their individual $1 million
benefits to exclude from reassessment a transfer to
their children of $2 million of value in real property
that is not the parents’ principal residence.
When must I file my claim for exclusion?
Your claim must be filed with the county assessor
within three years of the date of transfer, or prior to
the subsequent transfer of the property to a third
party, whichever is earlier.