Governor-Declared Disaster - Replacement Property

How is the value of my new replacement property calculated?

If the market value of the replacement is within 120 percent of the market value of the property substantially damaged or destroyed, the factored base year value of the damaged or destroyed property will be transferred to the replacement. (R&T 69(b)(1))

If the market value of the replacement is more than 120 percent of the market value of the property substantially damaged or destroyed, the base year value of the replacement will be the factored base year value of the damaged or destroyed property plus the amount by which the value of the replacement exceeds 120 percent of the value of the property that was damaged or destroyed. (R&T 69(b)(2))

Example: Factored Base Year Value (FBYV) of damaged or destroyed property = $150,000
Market value of damaged or destroyed property = $220,000
Replacement property value allowed for transfer of FBYV (120% * $220,000) = $264,000
Scenario 1: Market value of replacement property = $253,000
$253,000 is less than $264,000
New assessed value of replacement property = $150,000
Scenario 2: Market value of replacement property = $275,000
Excess market value ($275,000 - $264,000 = $11,000)
New assessed value of replacement property ($150,000+$11,000) = $161,000
Scenario 3: Market value of replacement property = $125,000
$125,000 is less than the $150,000 FBYV of the original property 
New assessed value of replacement property = $125,000
If my property was severely damaged / destroyed by a calamity but no declaration of disaster was issued by the governor, would I still be able to transfer my old base year value?
No. A disaster declaration must have been issued by the Governor for the event that caused the damage. (R&T 69(c)(3))
What if the market value of my replacement property actually turns out to be LESS than the factored Prop 13 value of my original property?
If the market value of your replacement property is LESS than the factored Prop 13 value of your original property, the replacement will be assessed at its lower market value, (see Scenario 3 above).  There is no need to file a claim form.
Can I transfer the base year value of my severely damaged / destroyed property to another county?
In some cases yes, but only if the county in which the replacement property is located has passed a resolution allowing such transfers and you otherwise qualify. (R&T Code 69.3)
Do I have to purchase an already complete replacement property or can I buy land and build a replacement structure on it?
You may do either, as long as the comparable replacement property is acquired or newly constructed within three years after the disaster.
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