Over 55? You may be eligible for property tax relief using California Proposition 60 & 90.
California voters passed Propositions 60 and 90 to provide property tax relief to encourage a qualified person age 55 or older to sell his/her principal residence* and purchase or construct a replacement residence of equal or lesser value*. The purpose is to provide an incentive for persons age 55 or older to sell their residence move into less expensive homes without having to pay more in property taxes.
If the person and principal residence qualify, the Assessor transfers the factored base value of the original residence to the replacement residence. Proposition 60 requires that the replacement residence be located in the same county as the original residence.
Enacted after Proposition 60, it allows transfer of the tax base from one county to another county if the California county (where the replacement residence is located) allows the transfer. Some counties do not allow transfer of the factored tax base value. For your protection, before you enter into a sale and/or purchase you must verify with the assessor’s office in the county where the replacement residence is located to determine if you will be able to apply for this property tax relief.
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.
7 COUNTIES WHICH ACCEPT PROP 90 (Current as of 6/1/2008)
Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura. (Contra Costa, Inyo, Kern, Riverside, Modoc, Monterey, and Marin have dropped out of the Prop 90 program.)
Need more information?
For more detailed information on Proposition 60 and Proposition 90, please visit the State of California Board of Equalization.
To obtain a claim form, contact the Assessor’s office.
I 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. I also advise you to consult with your accountant, tax advisor, financial advisor and other professionals with regard to your particular situation. I am not able, nor qualified to answer questions on the Propositions.