Tulare County Seal

Tulare County

Office of the Assessor/Clerk-Recorder

Transfers of Property Between Parents and Children

The Tulare County Assessor/Clerk-Recorder is committed to providing Tulare County residents with all applicable tax savings.

Visit the County Assessor’s website where the property is located. Contact information for each County Assessor in California is available here.

Did you know that parents can transfer their home (or family farm) to their children without having the property reassessed to its market value and avoid paying higher property taxes?

In November 2020, California voters approved Proposition 19 which provided what is known as an “intergenerational transfer exclusion” that allows the taxable value of a property to remain the same for the person receiving the property (the transferee) as that of the person transferring the property (the transferor), provided certain conditions are met. “Taxable value” means the property’s base year value plus inflationary adjustments, commonly referred to as the factored base year value.

When properties change ownership, the law typically requires the properties be reassessed to current market value, which can significantly increase the assessed value and the amount of property taxes owed. An intergenerational transfer exclusion prevents a family home (or family farm) from being reassessed, which can avoid a property tax increase.

Revenue and Taxation Code (R&TC) section 63.2, which implements the intergenerational exclusion provisions of Proposition 19, allows the family home or family farm to be transferred between parents and children without reassessment, with some market value limitations. The exclusion applies to such property transfers on or after February 16, 2021. For real property transfers that occurred before February 15, 2021, see Publication 800-1a information sheet, Property Tax Savings: Transfers from Parents to Children Occurring On or Before February 15, 2021.

Note: Proposition 19 allows transfers from parents to children and from children to parents.

Potential for Tax Savings

Property taxes are based on the assessed value of property. For purposes of California property taxation, real property is reassessed at market value when sold or transferred. As a result of a sale or transfer, a property’s assessed value can sometimes increase significantly, resulting in higher property taxes due each year.

If the exclusion is granted, the parent’s factored base year value as of the date of transfer will be the same for the child, as long as the property’s current market value does not exceed the factored base year value plus $1 million. If the market value exceeds this limit, the difference is added to the factored base year value, resulting in a new taxable value for the transferee’s property.