Acquisition by Public Entity, Base Year Value Transfer
California law provides that under certain conditions a person may transfer the base-year value of his or her property to a comparable property if that original property has been taken by eminent domain, acquisition by a public entity or governmental action resulting in a judgment of condemnation.
To be considered comparable, a replacement acquired by a person displaced under one of the three conditions above similar in size, utility, and function to the taken property. Replacement property is similar in size if its full cash value does not exceed 120% of the award or purchase price paid for the property taken.
Replacement property is similar in utility and function if the property taken and the replacement property fall into the same category:
Single family and duplex
Commercial, investment , income, or vacant property
If replacement property is not similar in size. function and utility the excess portion is considered to have undergone a change in ownership and will be subject to reappraisal