State expands tax benefits for seniors, severely disabled and wildfire victims

The state Board of Equalization on Thursday expanded property tax benefits for seniors, the severely disabled, and victims of wildfires or natural disasters.

Those groups will now be able to transfer the taxable value of their original residence to a replacement residence up to three times during their lifetime anywhere throughout the state, Board officials said in a press release.

The decision was based on Proposition 19, The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act, that California voters approved on Nov. 3 last year.

“Seniors, the severely disabled, and victims of wildfires or natural disasters can now move to a replacement home anywhere in California and avoid significant property tax increases if eligible,” said Board Chairman Antonio Vazquez. “Property tax relief can be beneficial for those especially on limited incomes or who have been affected by wildfires or natural disasters.”

Seniors, age 55 and older, or those severely disabled must meet specific requirements to qualify, Board spokesman Peter Kim noted. The original and replacement residence must be eligible for the homeowners’ or disabled veterans’ exemption. An application must be filed with the County Assessor to transfer the taxable value.

The replacement residence must be purchased or newly constructed within two years of the sale of the original home. If the market value of the replacement residence is greater than the market value of the original residence, the difference will be added to the taxable value at the time of transfer, Kim explained.

For victims of a wildfire or natural disaster, the same conditions and requirements apply as the taxable value transfer for seniors but there are no age requirements. The residence must be substantially damaged to qualify, and the damage must be from a wildfire or a governor-proclaimed disaster.

Pending legislation may affect the carrying out of Proposition 19, and taxpayers are strongly encouraged to visit the BOE website, at boe.ca.gov, for the latest information, additional details and resources, and answers to frequently asked questions.