January 17, 2008 – 4:50 pm
Were your real estate taxes increased because of a transfer of property to your registered Domestic Partner? If so, you may be entitled to have that tax increase reversed. You must apply for the reversal on or before June 30, 2009. Contact your county assessor to obtain the appropriate form.
Financial advisors - please forward this information to your clients or update them at your client meetings. CPAs - you should definitely include a notice about this change in your tax packets for this upcoming tax season.
As you probably know, California allows Domestic Partners to register with the Secretary of State. The Domestic Partner then qualifies for inheritance rights, health benefits and numerous other benefits. However, the Revenue and Taxation Code did not allow an exemption from reassessment of real estate taxes on a transfer to a Domestic Partner. Therefore, when a Domestic Partner was added to a deed, the real estate taxes were increased. California has now amended the Revenue and Taxation Code to allow for the exemption from reassessment of real estate taxes for transfers after January 1, 2000. The county assessor is required to reverse the reassessment between registered Domestic Partners provided the transferee submits an application for reversal before June 30, 2009.
Since a raise in real estate taxes is going to be effective for life, this exemption can result in thousands of dollars of additional real estate tax per year. That’s going to add up. This information can be very important to clients who qualify for this benefit.
November 27, 2007 – 8:29 pm
Our primary goal of this blog is to make better connections and enhance communications with our clients, colleagues, and friends. In pursuit of this goal, we feel that a blog will help us provide the resources and insight necessary to provoke discussion, make informed decisions, and set better expectations when addressing your estate planning needs. Any member of our staff may provide information and commentary which may emanate from our philosophy, experience, readings, or continuing education. We very much hope that you will find this blog to be enlightening, entertaining, and above all else, a window to our office.
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