Parent/Child Exclusion (Proposition 58)

Proposition 58

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

Questions and Answers

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• How does the Proposition work?

  In the State of California, real property is reassessed at market value if it is sold or transferred. 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 may not be reassessed if certain conditions are met and the proper application is timely filed.

  Proposition 58 may allow new property owners to avoid property tax increases when acquiring property from their parents or children. 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.

• Which transfers of real property are excluded from reassessment by Proposition 58?
  • Transfers of primary residences (no value limit)
  • Transfers of the first $1 million of real property other than the primary residences. The $1 million exclusion applies to each eligible transferor.
• What value of the transferred property is counted toward the $1 million exclusion limit?

  The Proposition 13 value (factored base year value) just prior to the date of transfer. Usually, this is the taxable value on the assessment roll. If a property is under a Williamson Act (open space), Mills Act (historical property) contract, or Proposition 8 value, it is the factored base year value that is counted, not the restricted value.

• To qualify for the exclusion, must the transfer be only a result of a gift?

  No. Transfers may be result of a sale, gift, or inheritance.

• Will a transfer via a trust qualify for this exclusion?

  Yes. For property tax purposes, we look through the trust to the present beneficial owner. When the present beneficial ownership passes from a parent to a child, this is a change in ownership that may be eligible for the parent-child exclusion.

Eligible Persons

• Who are considered eligible children under Proposition 58?

  A "child" for purposes of Proposition 58 includes:

  1. Any child born of the parent(s).
  2. Any stepchild while the relationship of stepparent and stepchild exists.
  3. Any son-in-law or daughter-in-law of the parent(s).
  4. Any adopted child who was adopted before the age of 18.

  Spouses of eligible children are also eligible until divorce or, if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law.

Qualifying Properties

• Is the transfer of real property to or from my family partnership eligible for the exclusions?

  No. Transfers of real property must be between eligible parents and children, not legal entities.

Transfer Value

• Is there a limit placed on my principal residence's assessed value that may be excluded from reassessment?

  No. The $1 million limit applies only if the property was not granted a homeowners' exemption or disabled veterans' exemption before the transfer.

• Can each of my four children receive $1 million of real property?

  No. The exclusion is allowed only up to the first $1 million you transfer to your children.

Claim Filing

• What form do I use to file for the Proposition 58 exclusion?

  Claim for Reassessment Exclusion for Transfer Between Parent and Child, Form BOE-58-AH.

  Copies of this form are available from the Marin County Assessor’s office by calling 415-473-7231 or you may download the form from the Marin County Assessor website.

• What are the time filing requirements of Proposition 58?

  Generally, to get relief retroactive to the date of transfer, a claim must be filed with the county assessor's office by the earliest of the following:

  • Within three years of the transfer
  • Prior to transferring to a third party

  If a notice of supplemental or escape assessment is mailed after the deadline for either of these periods has passed, then the transferee has an additional six months from the date of the notice to file a claim. For example, if a taxpayer received a Notice of Supplemental Assessment for a parent-child transfer dated January 1, 2013, and then received a Notice of Proposed Escape Assessment dated April 1, 2016, the taxpayer would have six months from April 1, 2016 to file a claim with the assessor.

• Can I still be granted the exclusion if I file after the three-year filing period?

  Effective January 1, 1998, if the transferee has not transferred the property to a third party, applications may still be filed at any time after the three-year deadline; however, those filed after three years will only become effective for the lien date in the assessment year in which they are filed and will not be retroactive to the date of transfer. Therefore, the first year's enrolled value would be the base year value as of the year of transfer, factored for inflation plus any additional value which has been enrolled because of new construction.

  If you need additional information or have more questions, please contact the Marin County Assessor at (415) 473-7231 or send an email. The office of the Marin County Assessor is located at Marin Civic Center Room 208, 3501 Civic Center Drive, San Rafael, CA. Office hours are 9:00 a.m. – 4:00 p.m., Monday through Friday.

For additional information

If you need additional information, please contact the Marin County Assessor’s Office.

Beginning Monday, June 15, 2020, the Assessor’s Office public counter will be available by appointment only. To slow the spread of COVID-19, we respectfully request that our customers continue to observe Marin’s Shelter in Place Order and use online and mail options as much as possible.

Assessor’s Office / Room 208 / Office Visit by Appointment Only — Appointments Available 9am to 3pm

• The Real Property division of the Assessor’s Office is available between the hours of 8am to 4pm for phone calls or e-mail correspondence, Call (415) 473-7215 with Assessment questions or email us.
• Please visit our electronic calendar to schedule your appointment with the Real or Personal Property divisions of the Assessor’s Office, or you may phone our offices to schedule your appointment.

You may also visit the Reassessment Exclusion for Transfer Between Parent and Child FAQ section for additional information.