TRANSFER PROPERTY TAX BASE - CA PROPOSITIONS 60, 90 and 110
If you’ve thought of moving but were frightened at the prospect of your property taxes increasing here are a few propositions for you—60, 90 and 110. Most homeowner’s are aware that buying a new home means having their property tax base increased to 1% of the purchase price. For those of you who have owned a home for many years this alone can make a move financially impossible; for many, it means they couldn’t afford to buy the home they already own.
A Brief History:
Proposition 60 enacted into law in 1986 allowed for the one-time transfer of your current home’s tax base to a replacement property of equal or lesser value after the age of 55 of either spouse, providing that the replacement property was located within the same county.
Proposition 90, which was passed by the legislature in 1989, allows counties to voluntarily extend the transfer into their county from all 58 California counties.
Proposition 110 passed in 1996 extends this relief to permanently disabled people, whether 55 or not.
The problem for most people wishing to benefit from this tax base transfer is they are limited to moving within the county in which they currently reside, or moving to one of only a handful of reciprocal counties:
- El Dorado
- Los Angeles
- San Bernardino
- San Diego
- San Mateo
- Santa Clara
- You or your spouse must be at least 55 years of age when the original property was sold.
- The original property and new property must be within the same county.
- You can only use the transfer once in a lifetime.
- The new replacement property must be of equal or lessor value than the original property sold.
- The replacement property must be built or bought within 2 years of selling the original property.
- Your original property must be your primary residence and have been eligible for the homeowners' exemption or disabled veterans' exemption.
- Your replacement property must be your primary residence and must be eligible for the homeowners' exemption or disabled veterans' exemption.
How it works:
If you qualify, you must file an application within the time period prescribed. The Assessor will determine if the transaction qualifies. This is a one-time only benefit. You must verify that you and your properties (current residence and replacement residence) qualify before considering a move. Also, if there is more than one owner of the original property, only one may claim the benefit as long as that person is eligible. Verify this information before you enter into a transaction.
For more information please click on these resources:
Orange County Assessor, Orange County Tax Assessor, For Homeowners Age 55 Plus
Los Angeles County Assessor, Homeowner's Guide to Proposition 60 and Proposition 90
Riverside County Assessor, Proposition 60/90
San Diego County Assessor, Property Tax
California Board of Equalization, Prop 60/90
We recommend you consult with the Assessor's office of the county of your current residence,
and the county of your replacement residence to verify the information and eligibility.
And, we advise you to consult with your accountant, tax advisor,
financial advisor and other professionals with regard to your particular situation.
We are not able, nor qualified to answer questions on the Propositions. Information is deemed reliable, but not guaranteed, and is provided as a service only. The information contained herein is not meant to be legal nor financial advice.