What you should Know about 60/90
60 & 90: Propositions you, your friend, your mom, your mom’s friend and everyone in the county should know about! These two Propositions, 60 and 90, were passed in 1986 and 1988 to diminish property tax burdens for “senior citizens” looking to buy new property. You see in California when you buy a home, the property is reappraised and a new base tax is determined. However, with Propositions 60 and 90 or “60/90” persons 55 years or older can transfer their existing home for another home in a participating county of same or equal value and keep their original tax base!
Eligibility[1]
- You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.
- 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 of equal or lesser “current market value” than the original property. The “equal or lesser” test is applied to the entire replacement property, even if the owner of the original property purchases only a partial interest in the replacement property. Owners of two qualifying original properties may not combine the values of those properties in order to qualify for a Proposition 60 base-year value transfer to a replacement property of greater value than the more valuable of the two original properties.
- The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
- To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase date or new construction completion date of the replacement property.
- Your original property must have been eligible for the homeowners’ or disabled veterans’ exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.
One Time and One Time Only
The 60/90 transfer can only be made once. The only exception is if you have already used the base year value transfer and after the original claim you become severely disabled and must move because of your handicap. In this case Proposition 110 comes into play, and your base year value can be transferred again. If your spouse passes away or you get divorced, this does not qualify you or your spouse to use the transfer again.
Participating Counties
The following counties accept intercounty (between) transfers: Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne, Ventura.
If you still have questions, please refer to the Letter to Assessors No. 2006/010 or call the Assessment Services Unit at 916-274-3350.
Thank you for reading! We hope you utilize this wonderful property tax transfer opportunity. If you would like to discuss further details or begin the search for an adequate replacement property, give us a ring! One last tip, before you sell your original property, add some improvements to increase the assessment value, giving you a higher price range for replacement properties. Contact a RE/MAX Estate Properties agent to help determine what improvements would give you the highest return in value.
[1] http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm#2