You closed on a house in Sacramento in the fall. A supplemental tax bill arrives a few months later, then the regular annual bill, and neither one shows a homeowners' exemption. In California that is not an error. The exemption is a claim you file with the county assessor, and it has deadlines.
Section 218(a) sets the exemption at "seven thousand dollars ($7,000) of the full value of the dwelling." That is a reduction in value, not a credit against your tax bill. What it saves you depends on the tax rate that applies at your address, which your county tax collector can show you. Nobody can quote a savings figure without knowing that rate.
It is also not the same thing as Proposition 13's limit on assessed value, and it does not transfer from a seller. The Board of Equalization describes it as a "one-time filing" by the homeowner; once granted, it continues while you remain eligible.
The core requirement is occupancy. The Board of Equalization states that "the home must have been the principal place of residence of the owner on the lien date, January 1st."
Section 218(b)(1) lists what is excluded: property that is "rented, vacant, under construction on the lien date, or that is a vacation or secondary home of the owner or owners," and property on which the owner receives the veterans' exemption.
Section 218(c) fills in the definitions:
The statute also addresses temporary absences. If a dwelling was damaged in a misfortune or calamity, or the owner is confined to a hospital or care facility, section 218(b) can treat the owner as still occupying it, subject to conditions.
The regular deadline. Section 255(b) says a homeowners' exemption claim may be filed "any time after the claimant becomes eligible but no later than 5 p.m. on February 15." The Board of Equalization says the same: a first-time filer may file any time after becoming eligible, but no later than February 15 to receive the full exemption for that year.
If your claim was timely but incomplete. Section 255.1 lets the assessor grant one reasonable extension, generally up to six months, to a claimant who filed on time but left out required information or a signature.
If you missed February 15. Section 275(a) provides that a claim filed after February 15 but "on or before the following December 10" receives "an exemption of the lesser of five thousand six hundred dollars ($5,600) or 80 percent of the full value of the dwelling." Late is better than never.
When you buy, California reassesses the property as of the change in ownership and issues a supplemental assessment for the rest of the fiscal year. We cover how that bill works in the California supplemental property tax bill.
The homeowners' exemption can apply to that supplemental assessment, with conditions:
The practical point: do not wait for the next February. File your BOE-266 soon after you move in, and watch for the supplemental notice so you can respond within 30 days if needed.
The exemption follows you, not the house, and it lasts only as long as you are eligible. The Board of Equalization says claimants "are responsible for notifying the assessor when they are no longer eligible," and that "December 10th is the last day to terminate the Homeowners' Exemption without penalty." If you move out and rent the property, or it becomes a second home, tell the assessor.
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No. The Board of Equalization describes it as a one-time filing by the homeowner, and the home must be the owner's principal place of residence on the January 1 lien date. A new owner files form BOE-266 with the assessor in the county where the property is located to claim it.
Revenue and Taxation Code section 255(b) allows filing any time after you become eligible but no later than 5 p.m. on February 15 for the full exemption. Under section 275(a), a claim filed after that but on or before December 10 receives the lesser of $5,600 or 80 percent of the dwelling's full value.
Section 218(a) sets it at $7,000 of the full value of the dwelling. It reduces taxable value rather than the tax bill directly, so the dollar savings depends on the tax rate that applies at your address, which your county tax collector can show you on your bill.
It can. Section 75.21(c) requires a claim within 30 days of the notice of supplemental assessment for the full exemption, but section 75.21(a) applies it only if the property is not already receiving an exemption on the current roll or the roll being prepared, such as the seller's.
No. Section 218(b)(1) excludes property that is rented, vacant, under construction on the lien date, or a vacation or secondary home, and property receiving the veterans' exemption. Owners must notify the assessor when they stop qualifying; December 10 is the last day to terminate without penalty.
This article is for general information only and is not legal, tax, or financial advice. State law and investor guidelines change; confirm current requirements with a licensed professional before making decisions. Xpert Home Lending, Inc. is an Equal Housing Lender.