February 22nd, 2011 6:30 PM by Teresa Molina
Proposition 60
Proposition 60 allows a transfer of base-year value of the principal residence sold of a senior citizen (55 and older) to a replacement dwelling of equal or lesser value within the same county.
Proposition 90
Proposition 90, enacted in California in November of 1988, provides an avenue for property tax relief to owners 55, and older, who sell their principal residence and purchase a replacement home of equal or lesser value in another county.
The County Assessors will require a copy of the tax bill from the other county and a copy of the applicant's birth certificate to be included with the application. Also include a copy of the grant deed for the new purchase and a copy of the closing statements of both sale and purchase.
SUMMARY OF ELIGIBILITY REQUIREMENTS
The seller of the original residence, or a spouse residing with the seller, must be at least 55 years of age, as of the date that the original property is transferred.
The replacement property must be of equal or lesser "current market value" than the original.
The tax base year of the original property cannot be transferred to the replacement dwelling until the original property is sold.
The replacement property must be purchased or newly constructed within two years (before or after) of the sale of the original property.
The owner must file an application within three years following the purchase date or new construction completion date of the replacement property.
This is a onetime only filing. Proposition 60/90 relief cannot be granted if the claimant, or spouse, was granted relief in the past.
Proposition 60/90 relief includes, but is not limited to: single family residences, condominiums, units in planned unit developments, cooperative housing, corporation units or lots, community apartment units, mobile homes subject to local real property tax, and owner's living premises which are a portion of a larger structure.
The taxpayer is not eligible for the tax relief until they actually own AND occupy and the replacement dwelling as their principle residence.
It is essential that you call the cooperating County in question, to verify that they are currently accepting the value transfer under Proposition 90, and what their requirements are. If you have any questions, the property tax office in Sacramento for all counties in California may be reached at (916) 445-4982
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