In the State of California, real property is reassessed at market value if sold or transferred, and property taxes can increase dramatically as a result. However, if the sale or transfer is between parents and their children, or from grandparents to their grandchildren, under specific/limited circumstances, the property will not be reassessed if certain conditions are met, and the proper application is timely filed. These propositions allow the new property owners to avoid property tax increases when acquiring property from their parents or children or from their grandparents. The new owner’s taxes are calculated on the established Proposition 13 base year value, instead of the current market value when the property is acquired. For additional information, please visit the BOE FAQs site: