can i transfer my property tax basis from my current residence to a more
expensive residence ? both houses would be within a 5 mile radius
,from one ajoining city to another . the house has been owned for 18
years so the tax bennefit would be
substantial . If this is possible what is the proceedure?

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Request for Question Clarification by hagan-ga on 16 May 2005 13:57 PDT

This request for clarification is only to alert you to my comment
below -- if you are over 55, or disabled, seek legal advice.

Sorry, no you cannot.  The tax is based on the value assessed by the
county tax assessor  (which could increase if you made improvements or
expanded a house you presently own) or by him based on the purchase
price if you buy a place (whereby the price paid is an indisputable
market valuation).

I think I have seen  excerpts from the law that support this, that a
researcher can find to give you a substantiated answer.

Whoah, not so fast -- under certain circumstances, homeowners over age
55 or severely disabled CAN in fact transfer their basis within the
county, or under more limited circumstances, to another county.  It
all depends on:
 -- the homeowner's age or disability
 -- the county of the two homes (best if they're both in the same county)
 -- whether both the old home and the new home are the primary residence
 -- whether the purchase of the new home is within 2 years of the old home sale
 -- whether the new home is of roughly equal or lesser value than the new

See "You Can Take It With You" at http://berkhills.com/news_archiveSp04.html.

These exceptions to Prop 13 were added by initiative in 1986 and 1988.
 They are now included in the text of the California Constitution:
"However, the Legislature may provide that under appropriate
circumstances and pursuant to definitions and procedures established
by the Legislature, any person over the age of 55 years who resides
in property that is eligible for the homeowner's exemption under
subdivision (k) of Section 3 of Article XIII and any implementing
legislation may transfer the base year value of the property entitled
to exemption, with the adjustments authorized by subdivision (b), to
any replacement dwelling of equal or lesser value located within the
same county and purchased or newly constructed by that person as his
or her principal residence within two years of the sale of the
original property."
http://www.leginfo.ca.gov/.const/.article_13A

As for the procedure, that's more complicated.  Each county handles
taxes differently.  But the Alameda County Assessor's Office has a
handy booklet online:
http://www.acgov.org/forms/assessor/Persons_55_Perm_Disabled_Transfer_Brochure.pdf

I've posted these comments, instead of an answer, because I can't give
a definitive answer to your situation.  Nobody could, on the facts
given.  If you're not over 55, or disabled, then myorin-ga is correct,
and Prop 13 (Article 13A of the California Constitution) compels the
state to assess taxes based on the purchase price.  But if you ARE
over 55, the possibilities are too complex and you need legal advice.

Best of luck.  Having survived the California housing market (and the
California bar exam), I feel your pain.

Thanks, Hagan.