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“I’d sell my home but the property taxes on my new house will ruin me”.
Propositions 60 and 90 allow senior citizens in California to transfer the trended base value from their current home to a replacement property if certain requirements are met. This may result in substantial tax savings. Proposition 60 relates to transfers within the same county (intra-county).
Proposition 90 relates to transfers of base value from one county to another county in California (inter-county)
Who Qualifies? If you or your spouse who resides with you is age 55 or older, you may buy or construct a new home of equal or lesser value than your existing home and transfer the trended base value to your new property.
This is a one-time only benefit. You must buy or complete construction of your replacement home within two years of the sale of the original property. Both the original home and the new home must be your principal place of residence. A claim must be filed within three years of purchasing or completing new construction of the replacement property. If a claim is filed after the three-year period, relief will be granted beginning with the calendar year in which the claim was filed. Once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again.
- The replacement property must be your principal residence and must be eligible for the Homeowners’ Exemption or Disabled Veterans' Exemption.
- The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
- Your original property must have been eligible for the Homeowners’ or Disabled Veterans’ Exemption.
For more details contact the LA County Tax Assessor’s Office at 1(888)807-2111 or visit: http://assessor.lacounty.gov/extranet/guides/prop6090.aspx
Note: In determining whether the "equal to or lesser than market value” test is met or not, it is important for the homeowner to know that the market value of a home is not necessarily the same as the sale or purchase price… For purposes of qualifying for Propositions 60 or 90, your local County Assessor’s office will determine the market value of each home involved. Both the former/original home and the replacement home may be subject to re-appraisal.
*Here is the link to the list of all California County Assessors offices.
If you are thinking of Selling your home and if you have any questions regarding "transferring" your current Tax Base to your new/replacement home…feel free to contact me any time. Always know that I make myself available for you. If I can answer any question or concern regarding real estate, it would be my pleasure to do so.