Jordan Z. Marks


County of San Diego

Property Taken By Government Action (Prop 3)

Property Taken By Government Action (Proposition 3)

State law allows a property owner to transfer their Proposition 13 base-year value to a comparable replacement property when the original property is acquired by a governmental agency through eminent domain, purchase, or inverse condemnation.

The program can result in significant property tax savings when the owner purchases the replacement property.

Apply in Person:

You may drop off the application to any of our available Office Locations.


Apply by Mail:

You  may obtain an application by calling us at (858) 505-6262 or by downloading the application .

Please mail the form to:

1600 Pacific Highway, Suite 103,
San Diego, CA 92101

The property owner can transfer the taxable value from their former property to their replacement property with no increase in their property taxes.

Yes. The replacement property must be similar in size and use of the property taken. Also, the market value of the new property may not exceed 120% of the government’s purchase price of the original property.​

Yes. You will receive your prior taxable value on the amount up to 120% of the purchase price, and will be reassessed on only the amount exceeding the 120%.​

The replacement property can be purchased any time after you receive notice from the governmental agency that your property has been approved for acquisition.​

You should apply immediately after you acquire your replacement property, and no later than four years from the date the original property was acquired by the governmental agency.​

No. The exclusion from reappraisal applies to any property taken by a public agency as long as the replacement property is similar in size and use.​

No. You must own the property being taken by a governmental agency in order to be eligible for the program.

Yes. The program applies throughout the State so long as both the original and replacement property are within California.

Only the portion of the replacement property that is similar to the original property will qualify for the exclusion. The remainder of the property will be assessed at the current market value. ​

No. You cannot purchase the replacement property before the date of a written offer or the date a court declares that the property was taken.

No. The property must actually be acquired by a public entity in order to qualify. The threat of condemnation is not enough to qualify for the exclusion. ​

No. The new construction will not increase your assessed value as long as the value does not exceed 120% of the value of the property taken. You must complete the new construction within four years from the date the property was taken as well as file the necessary application.​

Your relief under the exclusion is limited to 120% of the one-half of the purchase price of the property taken.​

Although the relief granted under the program is similar to the relief granted by the Internal Revenue Service, there are important differences. The requirements for property tax relief are generally much more restrictive.​