Jordan Z. Marks

ASSESSOR | RECORDER | COUNTY CLERK

County of San Diego

Intergenerational Exclusions

Proposition 19 allows a primary residence and its low Proposition 13 assessed value to be transferred between parents and children or grandparents to grandchildren (when the parents are deceased) up to a statutory limit, for as long as the property remains the primary residence of the qualified beneficiaries.

You have one year from the date of transfer or date of death to file the necessary Intergenerational Exclusion related paperwork to be considered a timely filing and to preserve the lower property taxes and get full benefits.

What are Intergenerational Exclusions?

The transfer of real property between parents and children or from grandparents to grandchildren can be excluded from reappraisal for property tax purposes. Due to the passing of Proposition 19, which changed the Intergenerational Exclusion rules for properties sold on or after February 16, 2021, the exclusion an applicant may qualify for will depend on when the property was transferred. 

If the property transfer occurred before February 16, 2021, the principal place of residence and up to a maximum of $1,000,000 in assessed value of any additional property may be transferred without a tax increase.

If the property transfer occurred on or after February 16, 2021, the exclusion is limited to the first $1,000,000 (this amount is adjusted annually by a factor provided by the State Board of Equalization) of value that would be added upon reassessment of the principal residence. Also, a Homeowners’ Exemption must be filed within one year of transfer, and the property must remain as the primary residence of the applicant to retain the exclusion.

Please refer to the FAQs tab for additional information on the application process.

An application must be filed with the Assessor's Office to determine eligibility for this exclusion. This application may be sent to you because of a change in ownership that may cause a reassessment of your property at current market value. You may qualify for reassessment exclusion if this transfer of property is between parents and children or from grandparents to grandchildren.

This is not an automatic exclusion.

Parent-Child & Grandparent-Grandchild Transfers Comparison Chart

 

Proposition 19

Effective ON or AFTER  February 16, 2021

Proposition 58/193

Effective BEFORE February 16, 2021

Principal Residence
  • Principal residence of transferor and transferee
  • Value limit of current taxable value plus $1,000,000 (as biennially adjusted)
  • Family homes and farms
  • Principal residence of transferor
  • No value limit
  • Residence and homesite (excess land may be excluded as "other property")

Other Real Property

Eliminates exclusion for other real property other than the principal residence

Transferor lifetime limit of $1,000,000 of factored base year value

Grandparent-Grandchild Middle Generation Limit

Parent(s) of grandchild, who qualifies as child(ren) of grandparent, must be deceased on date of transfer

Filing Period
  • File for homeowners' exemption within 1 year of transfer
  • File claim for exclusion within 3 years or before transfer to third party

 
  • File claim within 3 years or before transfer to third party

Implementing Statute

Revenue and Taxation Code section 63.2 (implements Proposition 19)

Revenue & Taxation Code section 63.1 (implements Propositions 58/193)

Important Dates

Effective February 16, 2021

Through February 15, 2021

How do I obtain a Parent/Child or Grandparent/Grandchild Exclusion application?

You can download the application from the Forms tab or from here.

How do I apply for the Intergenerational Exclusion?

You can file in one of three ways.

Option 1: Apply online

Complete the webform below and one of our staff member swill be in contact with you regarding your application.

Option 2: Apply by mail

Mail the completed application and necessary information to the following address:

JORDAN Z. MARKS, ASSESSOR
Intergenerational Exclusion Unit
1600 Pacific Highway, Suite 103
San Diego, CA 92101

Option 3: Apply in person

Submit the completed application at any of our available office locations linked below.

Find a Location

For assistance with completing the application, only our staff at the San Diego Assessor Main Office can assist:

County Administration Center
 1600 Pacific Highway, Suite 103
San Diego, CA 92101

Parent/Child - Grandparent/Grandchild Exclusion on/after February 16, 2021

The Parent-Child Exclusion applies to any real property purchases or transfers between parents and children of a principal residence of the transferor and transferee which occurred on or after February 16, 2021.

Natural children, children adopted before the age of 18, stepchildren (as long as the parents are still married), foster children, and sons- and daughters-in-law are considered children under this exclusion program.

A parent may transfer their principal residence with a $1,000,000 market value exclusion to their children providing that the proper Claim for Exclusion from Reappraisal form is filed and approved by the Assessor's Office. If the market value of the family home or farm on the date of transfer exceeds the sum of the factored base year value plus $1 million, the amount in excess of this sum will be added to the factored base year value.

​California State law allows property to be excluded from reappraisal when transferred between grandparent and grandchild, providing that a Claim for Exclusion from Reappraisal form is filed and approved by the Assessor's Office. This exclusion is available only when both parents of the eligible grandchildren are deceased. Disclaiming interest in the real property by the parent does not alter the requirements as both parents must be deceased for the Grandparent-Grandchild Exclusion to qualify.

No. A Claim for Exclusion from Reappraisal form must be completed and filed with the Assessor's Office. Failure to file a claim will result in a reassessment of the property. You will receive the exclusion after your claim is approved.

A claim must be filed within three years of the date of transfer or death, or prior to the sale or transfer to a third party. Also, a claim may be filed within six months after the mailing date of the supplemental notice or escape assessment. In addition, a Homeowners' or Disabled Veterans' Exemption must be filed within one year of transfer.

If a claim is filed after the legal deadline, the exclusion may be granted but no refunds will be issued for prior years. It will be granted for the year the claim is filed as long as the property has not been sold to a third party.

Yes. An inheritance or transfer to children within a trust may qualify for this exclusion. The trust documents must be provided with the claim.

No. In order to qualify, the transfer of property must be between individuals, not individuals and a corporation or partnership.

The transferor is the previous owner (grantor, decedent, or trustor). The transferee is the new owner (grantee, heir, or beneficiary).

No, one signature is sufficient, however, all transferees must be listed. A photocopied signature is not acceptable.

Parent/Child - Grandparent/Grandchild Exclusion before February 16, 2021

Yes. The administrator or executor of the estate is required by state law to notify the Assessor’s office of a death of a property owner.

Yes, according to state law, death is considered a change of ownership, and the property can be reassessed as of the date of death for property tax purposes.

No. If the property is transferred to the surviving spouse, there is no reassessment of the property. In addition, if the property is inherited by the children, a reappraisal may not be required. ​

This exclusion prevents an increase in property taxes when real property is transferred between parents and their children.​

A parent may transfer their principal residence and any other real property valued up to $1,000,000 to their children. The properties will not be reappraised providing that the proper Claim for Exclusion from Reappraisal form is filed and approved by the Assessor’s Office.​

No. The parent must actually be deceased prior to the transfer to the grandchildren.​

No. A Claim for Exclusion from Reappraisal form must be completed and filed with the Assessor’s Office. Failure to file a claim will result in a reassessment of the property. You will receive the exclusion after your claim is approved.​

To prevent a supplemental tax bill from being issued, a claim must be filed as soon as possible after the transfer or date of death. ​

A claim must be filed within three years of the date of transfer or death, or prior to the sale or transfer to a third party. In addition, a claim may be filed within six months after the mailing date of the supplemental notice or escape assessment.​

If a claim is filed after the legal deadline, the exclusion may be granted but no refunds will be issued for prior years. It will be granted for the year the claim is filed as long as the property has not been sold to a third party.​

Yes. A reappraisal will occur for the period between the date of the death and the sale to the third party. A supplemental bill will be issued unless the heirs or beneficiaries apply and qualify for this exclusion.​

The disclosure of social security numbers is mandatory as required by the Revenue and Taxation Code Section 63.1

Foreign nationals who are unable to obtain a social security number may submit an IRS-issued tax identification number. The numbers are used by the Assessors and the State to track the exclusion limit for other real estate properties.