Grandparent/Grandchild Exclusion (Proposition 193)

Shelly Scott, Assessor - Recorder - County Clerk

Transfer property between grandparents and grandchildren.

Under the rules of Prop 193, grandparents may have the option of transferring property to their grandchildren without property reassessment. If you are transferring your principal residence to your grandchildren, or if your grandchildren are purchasing it from you, this transfer may not be viewed as a change of ownership for assessment purposes. To qualify for this exclusion, all the parents of the grandchild who qualify as children of the grandparents must be deceased as of the date of transfer. You must also file the Prop 193 Form with the Assessor to determine eligibility.

Questions and Answers

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  • What is Proposition 193?

    Proposition 193, effective March 27, 1996, is a constitutional amendment approved by the voters of California which excludes from reassessment transfers of real property from grandparents to grandchildren, providing that all the parents of the grandchildren who qualify as children of the grandparents are deceased as of the date of transfer. Proposition 193 is also codified by section 63.1 of the California Revenue and Taxation Code.

  • How does the Proposition 193 work?

    In the State of California, real property is reassessed at market value if it is sold or transferred and property taxes can sometimes increase dramatically as a result. However, if the sale or transfer is from grandparents to their grandchildren, under limited circumstances, the property will not be reassessed if certain conditions are met and the proper application is timely filed.

    Proposition 193 allows the new property owners to avoid property tax increases when acquiring property from their grandparents. 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 193?
    • 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 separately 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) or Mills Act (historical property) contract, 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.

Eligible Persons

Qualifying Properties

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.

    The grandparent-grandchild exclusion is really an extension of the parent-child exclusion; it is not a true exclusion from grandparent to grandchild. A transfer of real property from a grandparent to grandchild is counted against the deceased parent, not the grandparent. If the deceased parent used his/her $1 million exclusion, then there is no exclusion available to apply to any transfer from the grandparent to the grandchild.

Claim Filing

  • What forms do I use to file for the Proposition 193 exclusion?

    Claim for Reassessment Exclusion for Transfer Between Grandparent and Grandchild (Form BOE-58-G).

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

  • What are the time filing requirements of Proposition 193?

    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, 2003, and then received a Notice of Proposed Escape Assessment dated April 1, 2006, the taxpayer would have six months from April 1, 2006 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. The phone number 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.

You may also visit the Grandparent/Grandchild Exclusion (Proposition 193) FAQs for additional information.