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Registered Domestic Partners Exclusion

As of January 1, 2000, all transfers between Registered Domestic Partners are not subject to reassessment as changes in ownership under California law.

As with spouses, transfers between domestic partners that are pursuant to a property settlement or domestic partner dissolution of agreement do not trigger reassessment.  Similarly, transfers that occur because of the death of a registered domestic partner are also excluded from reassessment.

Registered Domestic Partners are registered with the California Secretary of State.

Domestic partners not registered with the California Secretary of State do not qualify as Registered Domestic Partners Exclusion.

Important Date for Registered Domestic Partners and Same Sex Marriages:

From January 1, 2000 to January 1, 2006, transfers between Registered Domestic Partners that were reassessed for change in ownership may apply for claim for reassessment reversal by June 30, 2009.  Claims filed after June 30, 2009 will be prospective. Prospective relief is applied “commencing with the lien date of the assessment year in which the claim is filed.”  In other words, when a claim for prospective relief is filed, relief is applied to the fiscal year which begins on July 1 of the calendar year in which the claim is filed.  There is no refund on the taxes paid.

As of January 1, 2006, registered domestic partners are given same exclusion rights as spouses.  R&T code 62(p).

From June 16, 2008 to November 5, 2008, same sex marriages performed during this period are recognized.

On June 28, 2013, same sex marriages are recognized.

Filing Requirements:
When recording the Grant Deed, Quitclaim deed, Affidavit of Death of Joint Tenant or Affidavit of Death of Trustee, complete the Preliminary Change of Ownership report, section A which provides additional information to the assessor for the type of transfer.

Do I have to be in a registered domestic partnership in order to qualify for this exclusion?
Yes. Registered Domestic Partnerships are registered with the California Secretary of State.
Does the domestic partnership exclusion apply to members of the opposite sex?
Yes, provided that they are registered with the California Secretary of State.
My partner and I are registered as domestic partners with the City and County of San Francisco, do we need to be registered with the California Secretary of State?
You and your partner are required to be registered domestic partners with the California Secretary of State in order to obtain the full benefits of California’s domestic partnership exclusion.
My domestic partner transferred a 30% interest in her personal residence to me as a tenant-in-common. We are not Registered Domestic Partners with the California Secretary of State. Will the transfer be reassessed?
Yes, the transfer will constitute a change of ownership because you and your partner were not registered domestic partners with the state at the time the transfer occurred. Therefore, the transfer is not excluded from a tax reassessment.
My registered domestic partner transferred his separately held home into his living trust in which I am the beneficiary. Will the home be reassessed after his death?
No, the home will not be reassessed when it is transferred to you as the beneficiary of your partner’s living trust because you and your partner were registered domestic partners at the time of his death.
My domestic partner and I have decided to terminate our domestic partnership. We have agreed to split the real property whereby he will transfer a 50% interest in our residence to me. I will take title as a tenant-in-common. The property is held in my partner’s name alone. Does taking title to the residence as a tenant-in-common pursuant to the property settlement create a reassessment?
No, the home will not be reassessed provided that the transfer is in connection to a property settlement agreement that you and your former domestic partner executed. A change of ownership does not occur with regard to real property transfers to a domestic partner or former domestic partner in connection with a property settlement agreement or decree of dissolution of a domestic partnership or legal separation.
My partner and I are buying a home together. Other than being registered domestic partners with the state, is there anything else we need to do to ensure that the real property exclusion will apply?
Real property is reassessed when there is a change of ownership. Since you and your domestic partner are purchasing your home from a third party, there will be a change of ownership because title will transfer from the third party as the seller/transferor to you and your partner as the buyers/transferees. There is no exclusion that will prevent a tax reassessment. Afterwards, a transfer of an interest in the home between you and your partner will be exempt since you are both registered domestic partners. However, prior to taking title to the property, it is advisable that you and your partner consult with an attorney regarding a number of issues, including: (i) how to hold title to the property (joint tenancy vs. tenancy-in-common), (ii) whether you and domestic partner should have a written property agreement setting forth your rights and obligations regarding the co-ownership of the home; and (iii) how you and your domestic partner can utilize estate planning and tax planning strategies to minimize both federal and state property and income tax consequences.
Is my domestic partner required to actually own a partial interest in my real property in order for the exclusion to apply if I intend to transfer her all my property upon my death?
No, the exclusion will apply even if the property was held in your name alone as long as you and your partner were registered domestic partners at the time of your death (see example above).
What do I need to do if my domestic partner and I do not live in San Francisco?
If the property is located in San Francisco then any transfer of real property between you and your domestic partner will be exempt from a reassessment. If the real property is located elsewhere, you should contact the Assessor’s office in the county where the property is located.
I still have questions about inter-spousal transfers. Where can I find more information?
If you still have questions about inter-spousal transfers, please call the San Francisco Assessor’s Office at 415-554-5596 for more information.