Hermosa Beach, CA asked in Tax Law for California

Q: I have a property inheritance and tax question.

Hello Attorney, a few years ago we inherited a cabin and a dock in Lake Arrowhead, California. Because that happened before Proposition 19 went into effect, we were able to keep the original property assessment. However, we were told by the county, well someone who answered the phone, that we couldn’t keep the original property assessment of our dock, therefore it was reassessed. So, I’m just reaching out to find an expert on this and to see if this is correct or not?

Thanks,

-Steven

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Tax Law Lawyer
  • Sacramento, CA
  • Licensed in California

A: Under California law, property inheritance and tax assessments are subject to specific regulations which can indeed differ based on the type of property and the timing of the inheritance. Before Proposition 19, certain properties, including primary residences inherited from parents or grandparents, could retain their original property tax assessments, potentially leading to significant savings for the heirs.

For your situation with the cabin in Lake Arrowhead, it appears you were able to maintain the original property assessment, aligning with the provisions available at the time of your inheritance. This benefit significantly impacts the property taxes you are required to pay annually on the cabin.

However, the reassessment of the dock indicates a different treatment under the law. It's plausible that docks and similar non-residential structures may not qualify for the same exemptions as residential properties or are subject to different rules under Proposition 19 or other relevant statutes. To ensure clarity and take any possible corrective action, it might be beneficial to consult with a professional experienced in California property law and tax regulations. They can offer guidance tailored to your specific circumstances, potentially exploring avenues to challenge the reassessment or minimize its financial impact.

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