Question About Proposition 58 In California

[allanb]

California

My Father passed away and left me a commercial building that at the time of his death was assessed at $1,200,000. It was the only investment property that he owned. We have had the property appraised by an independent Appraisor at $2,100,000. Under proposition 58 in the state of California there is a $1,000,000 exclusion for the new property tax assessment (We don't know what that assessment is yet) assuming that the new assessment is the same as our appraisal would that mean that my property taxes will not go up as the new assessment is only $900,000 higher than the old assessement, because it is under the $1,000,000 exclusion. If I don't have this correct could you please let me know how this works. BTW, I have already filed the forms. I tried to ask the Assessors office this question but they didn't seem to know the answer.

Thank You, Allan B

 

[justalayman]

first, did he own the property in his name or that of some legal entity (business)? If not his name, prop 58 does not apply.


the exemption is for up to $1M in transferred value:

http://www.boe.ca.gov/lawguides/property/current/ptlg/rt/63-1.html

That would mean that if the property is valued at $2.1M, the taxable portion would be the $1.1M

 

[allanb]

Actually, my Father held the building in his personal trust and I was the Trustee. I subsequently transferred into my own personal Trust.
I believe everything that I originally stated still applies and I thank you for the clarification, justalayman
If this is not correct though I would like more imput.
Thanks again.
Allan B

 

[tranquility]

The purpose is for smaller transfers. I don't think such a large transfer will give you much benefit.

 

[FarmerJ]

Keep in mind that what the county says its worth for property taxation can be one heck of a different amount than what a building may appraise and sell for when its time to sell. ( do not tell the county assessors office what a indep appraiser thinks its worth, thats like asking them to look it over and increase your taxes )