Below is a series of exemptions and tax relief for California homeowners.
Homeowners’ Exemption
If you own a home and occupy it as your principal place of residence on January 1, you may apply for an exemption of $7000 off of your assessed value. New property owners will automatically receive an exemption application. A Homeowners’ Exemption will also apply to the supplemental assessment, if the prior owner did not claim the exemption. Call (213) 974-3211.
Capital Gains Tax Exemption
Homeowners who have owned their homes for at least two years are entitled to a capital gains tax exemption when they sell. For married couples that file jointly, the first $500,000 of gain is taxfree. For single individuals, the exemption is $250,000. In either case, the property must be a primary residence that you occupied for 2 of the 5 years before selling.
Disabled Veterans’ Exemption
If you are a California veteran who is rated 100% disabled, blind, or a paraplegic due to a service-connected disability (or if you are the unmarried widow of such a veteran), you may be eligible for an exemption of up to $150,000 off of the assessed value of your home. Call (213) 974-3211.
Institutional Exemptions
Property used exclusively for a church, nonprofit college, cemetery, museum, school, or library, may qualify for an exemption. Property owned and used exclusively by a nonprofit, religious, charitable, scientific, or hospital corporation is also eligible. Call (213) 974-3481.
Builders’ Exclusion
Certain new construction may be excluded from supplemental assessment. The property must be for sale and the builder must file the necessary claim form with the Assessor’s Office prior to or within 30 days from the start of construction. If the form is not filed, a supplemental assessment is sent to the builder upon completion of construction. Call (213) 974-3481.
Disaster Relief
If a major calamity, such as fire or flooding, damages or destroys your property, you may be eligible for property tax relief. In such cases, the Assessor’s Office will reappraise the property to reflect its damaged condition. In addition, when you rebuild it in a like or similar manner, the property will regain this pre-damage valuation basis for tax purposes. To qualify for property tax relief, you must file a Misfortune or Calamity Claim with the Assessor’s Office within 60 days from the date the property was damaged or destroyed. In addition, the loss must exceed $5000 of current market value. Call (213) 974-8658, or the nearest Assessor’s public service location.
Eminent Domain – Prop. 3
State law provides that if a government agency acquires property through condemnation, owners may have the right to retain that property’s existing assessed value by transferring it to a replacement property. You must file a claim. Call (213) 893-1239.
Decline In Value – Prop. 8
If the current market value is less than the actual assessment, the Assessor’s Office may reduce the assessed value of any real property. Call (213) 974-3211.
Parent/Child Exclusion – Prop. 58 & Grandparent/Grandchild Exclusion – Prop. 193
The transfer of real property between parents and children or from grandparents to grandchildren may be excluded from reappraisal for property tax purposes. You must file a claim. Call (213) 893-1239.
Exclusions for Seniors – Prop 60 & 90
A senior citizen over 55 years of age, who buys a residence of equal or lesser value (in the same county) than the prior residence, may be able to have his/her old assessed value transferred to the new home. You must file a claim. Call (213) 893-1249.
Severely and Permanently Disabled Exclusion – Prop. 110 A severely and permanently disabled person, who buys a new home, may be able to have his/her old assessed value transferred to the new home. You must file a claim. Call (213) 893-1239.
