Wright v. County of San MateoAnnotate this Case
Revenue and Taxation Code section 69.5, implementing 1986’s Proposition 60, allows qualified homeowners over 55 years of age to transfer the property tax basis of their principal residence to a replacement dwelling of equal or lesser value in the same county, Cal. Const., art. XIII A 2(a). San Mateo County determined that plaintiffs, who are otherwise qualified under the statute, were not entitled to transfer the property tax basis from their original home to a newly constructed replacement home because they formed a limited liability company (LLC) to purchase the land on which they installed the manufactured replacement home that they purchased. Plaintiffs sued; the trial court granted the county summary judgment. The court of appeal reversed. The plaintiffs, rather than the LLC, constructed the replacement home. They sold their original property and constructed a replacement property which, at the time of their claim, they owned and occupied as their primary residence. They are precisely the persons for whom the statute was intended to provide property tax relief. The fact that, to satisfy a bank requirement, they made temporary use of an LLC before taking title to their replacement property provides no justification under the terms of the statute or in logic or fairness for denying them relief.