BOE-68 (BACK) REV. 5 (8-07)
GENERAL INFORMATION
California law provides that under certain conditions a person maytransferthebaseyearvalueofhisorherproperty to a
comparable replacement property if that original property has been taken by eminent domain proceedings, acquisition by a public
entity, or governmental action resulting in a judgment of inverse condemnation.
To be considered comparable, a replacement property acquired by a person displaced under one of the three con ditions above
must be similar in size, utility, and function to the taken property. Replacement property is similar in size if its full cash value
doesnotexceed120percentoftheawardorpurchasepricepaidforthepropertytaken.Replacementpropertyissimilarin
utility and function if it is, or is intended to be, used in the same manner as the property taken. Property is similar in utility and
function if the property taken and the replacement property fall into the same category: Category A - single family and duplex;
Category B - commercial, investment, income, or vacant property; Category C - agricultural property. If replacement property is
notsimilarinsize,function,andutility,theexcessportionisconsideredtohaveundergoneachangeinownershipandwillbe
subject to reappraisal.
Thebaseyearvalueofthereplacementpropertywillbedeterminedbycomparingtheawardorpurchasepricepaidforthetaken
propertywiththefullcashvalueofthereplacementproperty:
• Ifthisvaluedoesnot exceed120percentoftheawardorpurchasepricepaidforthetakenproperty,then
the adjusted base year value of the taken property becomes the replacement property’s base year value.
• Ifthefullcashvalueofthereplacementpropertyexceeds the 120 percent level, the amount of full cash value
inexcessof120percentwillbeaddedtothebaseyearvalueofthetakenproperty.Thissumbecomesthe
base year value of the replacement property.
• Ifthefullcashvalueofthereplacementpropertyisless than the base year value of the property taken, that
lowervaluebecomesthebaseyearvalueofthereplacementproperty.
• Ifthereisnoawardorpricepaidforthepropertytaken(i.e.,anexchange),theAssessormustdetermine
the full cash value of both the property taken and the replacement property.
Onlytheowner(s)ofthepropertytakenmayreceivethispropertytaxrelief.Ownermeansthefeeownerorlifeestateownerof
the real property taken.
ForreplacementpropertyacquiredonorafterJanuary1,1983,arequestforreliefisconsideredtimelyifmadewithinfouryears
ofoneofthefollowingdates,whicheverisapplicable:
• The date the nal order of condemnation is recorded or the taxpayer vacates the replaced property,
whicheverislater.
• Thedateoftheconveyanceorthedatethetaxpayervacatesthereplacedproperty,whicheverislater.
• Thedatethejudgmentofinversecondemnationbecomesnalorthedatethetaxpayervacatesthereplaced
property,whicheverislater.
ReplacementpropertyiseligibleforreliefifacquiredafterMarch1,1975,andonoraftertheearliestof:
• Thedatetheinitialwrittenofferismadebytheacquiringentity.
• Thedatetheacquiringentitytakesnalactiontoapproveaprojectleadingtotheoffer.
• Thedatethe“NoticeofDetermination,”“NoticeofExemption,”orsimilarnotice,asrequiredbytheCalifornia
Environmental Quality Act (CEQA), is recorded by the public entity acquiring the taxpayer’s property and
the public project has been approved.
• Thedate,asdeclaredbythecourt,thatthereplacedpropertywastaken.
Anynewconstructionrequiredtomakethereplacementpropertycomparabletothetakenpropertywillbeeligibleforthisproperty
taxrelief,ifthenewconstructioniscompletedafterMarch1,1975,iscompletedonoraftertheearliest ofthefourdateslisted
above,andatimelyclaimforreliefisled.
Reliefislimitedtothedateofdisplacement,whichistheearliestof:
• Thedateofconveyancetotheacquiringentityortherecordingofthenalorderofcondemnation.
• Thedateofactualpossessionbytheacquiringentity.
• Thedateonorafterwhichanorderforpossessionauthorizestheacquiringentitytotaketheproperty.
YoumustprovidetheAssessoracertiedcopyofthenalorderofcondemnationororderforpossession;acertiedcopyofthe
recordeddeedshowingacquisitionbyapublicentity;acertiedcopyofthejudgmentofinversecondemnation;oracertied
copyofadocumentwhichclearlyindicatesthenameoftheacquiringagency,thedatecondemnationproceedingsbegan,and
the date of possession by the acquiring agency
TheAssessorwillforwardinformationrelativetoeachclaimforpropertytaxreliefunderthisprogramtotheBoardofEqualization,
County-AssessedPropertiesDivision,MIC:64,P.O.Box942879,Sacramento,CA94279-0064,whichwilldeterminewhether
morethanoneclaimforsuchassessmentreliefhasbeenmadeand,ifso,willnotifytheappropriateAssessor(s).