Propositions 60 and 90 - Transferring Property Tax Base for Homebuyers over 55

Information on California Propositions 60 and 90 which allow residents who meet the qualifications to transfer their property tax base.

One of the primary reasons that South Bay residents do not downsize once their kids have left the nest is the fear of rising property taxes. With homes in the South Bay often selling in the millions, there is a fear that along with a smaller South Bay home or townhome, will come a hefty property tax increase. This isn't necessarily the case and you may be protected by propositions 60 and 90 which can transfer your property tax base to a new South Bay property if you are over 55 and have the other qualifications.

Some of the Prop 60 qualifications are as follows:

• The principal claimant must be at least 55 years of age as the date of sale of the original residence and must have been an owner of record of both the original and the replacement residence.

• The property may be a single family residence, a unit within a cooperative housing project, condominium project, planned unit or a mobile home.

• The replacement residence value must be "equal to or lesser than" the value of the original residence.  Equal to or lesser than is further defined on the reverse side of the application.

• The replacement residence must be purchased or newly constructed within 2 years, before or after, the sale of the former residence.

• The base year value of the original property cannot be transferred to the replacement dwelling until the original property is sold.

• A taxpayer is not eligible for the tax relief until they actually own and occupy the replacement dwelling as their principal residence.

• The principal claimant must have been receiving or have been eligible for either the Homeowners Exemption or the Disabled Exemption on the original residence.

• An application/claim must be filed within 3 years of the date of the replacement property is purchased or newly constructed.

• The transfer of property tax is valid only one time. (Unless you become disabled after using the age 55 exception.)

If you have any questions, the property tax office in Sacramento for all counties in California may be reached by calling: (916) 445-4982

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