WHAT IS CALIFORNIA PROP 60 and 90 ANYWAY?

Homeowners often come into my open houses and mention how they wish they could “downsize”. They feel locked into their current homes because of their low property tax base. As we chat I ask them if they are familiar with Proposition 60 and Proposition 90, and surprisingly most are not.

Here is a brief explanation of each. These propositions provide property tax relief for those over the age of 55 wishing to transfer their original tax base to a replacement property of equal or lesser value when they sell their home. Prop 60 applies when the replacement home is in the same county as their existing home. Prop 90 however, allows this transfer to take place from one California county to another participating county.  Currently only 7 counties participate; Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara and Ventura. Please note that a property owner is only eligible to transfer their property tax base ONCE!

Qualifications

  • The seller of the original residence or spouse who resides with the seller, must be at least 55 years old at the time of the sale AND
  • The replacement home must be of equal or lesser value than the home sold AND
  • The replacement home must be in the same county or another participating county.
  • One note: If you sell your home first, you have up to two years to find your replacement home. Within the first year you can increase the value up to 5% and within the second year up to 10%. It is best, however, that you try to maintain the same or less than value. A county appraiser will determine if you are eligible for the transfer, so do not push the limit!

The Transfer is NOT Automatic

The owner must file an application for transfer with the local Assessors office of the participating county.  You must file within 3 years after the purchase of the replacement home. The applications are available at the Assessors office and it is a one-time only process.

If you have any questions regarding this or any other real estate issue, please do not hesitate to call me. I am happy to take the time to answer all your questions and concerns.

Advertisements

About Suzanne O'Brien

The role of a real estate agent is to guide you through the buying and/or selling process and take the time to make sure you understand every step of the transaction. I am absolutely committed to fulfilling your needs with the highest level of professionalism, expertise and service. My commitment to listening and satisfying your needs are the foundation from which a solid business relationship is built. I realize that people do business with people they trust. I am interested in what is best for you, the client, and am committed to establishing a long-term relationship based on trust. In addition, real estate is often times very personal, about family and home and pride myself in developing relationships that now call clients my friends. I pride myself on being knowledgeable and staying current with the fast pace changes in the industry. I approach each clients’ needs individually and am constantly aware of current and upcoming inventory. My creative approach to the business has earned me wonderful associations with both clients and other real estate professionals. I am always working for you…I feel the responsibility to make your dreams a reality…one move at a time.
This entry was posted in Advice On Home Ownership, Finance, Home Buying/Selling, Los Altos Community, Mountain View Community, Palo Alto Community, Senior Community, Sunnyvale Community, Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s