What are Propositions 60 and 90?
Propositions 60 and 90 are constitutional initiatives that provide property tax relief for persons age 55 and older. The propositions prevent reassessment when a senior citizen sells his/her existing residence and purchases or constructs a replacement residence worth the same or less than the original residence. This allows the senior citizen to continue to pay approximately the same amount of annual property taxes as before. The Assessor transfers the factored base value of the original residence to the replacement residence.
What requirements need to be met to qualify for the exclusion?
- Both properties must be located in the same county, unless the replacement property is located in a county that allows inter-county base year value transfers.
- The replacement dwelling must be of equal or lesser value than the original property.
- The transferor (seller) or a spouse residing with the transferor must be at least 55 years of age, or be severely and permanently disabled as of the date of transfer.
- The original property must have been eligible for the Homeowners’ Exemption, or entitled to the Disabled Veterans’ Exemption at the time of sale.
- The replacement dwelling must have been acquired or newly constructed within two years of (before or after) 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.
- The original property must be subject to reappraisal at its current fair market value. Transfers of the original property that are excluded from reappraisal, transfers between parents and children, will not qualify.
How is of “equal or lesser value” determined?
In general, “equal or lesser value” means the fair market value of the replacement property does not exceed one of the following:
- 100 percent of the market value of the original property, if the replacement property is purchased or newly constructed before the original property is sold; or
- 105 percent of the market value of the original property, if the replacement property is purchased or newly constructed within the first year after the original property is sold; or
- 110 percent of the market value of the original property, if the replacement property is purchased or newly constructed within the second year after the original property is sold.
How do I apply for Propositions 60/90/110?
A claim must be filed with the assessor, who will determine if the transaction qualifies. Claim forms should be obtained from the assessor’s office in the county where the replacement property is located.
If the market value of the replacement dwelling exceeds the “equal or lesser value” test, can a partial benefit be received?
No. Unless the replacement dwelling completely satisfies the “equal or lesser value” test, no benefit is available.
Can a taxpayer receive the benefit of propositions 60/90/110 more than once?
Only claimants who have not previously been granted this benefit are eligible. Proposition 110 creates an exception to this rule for a person over the age of 55 years that transferred the base year value from an original dwelling to a replacement dwelling and becomes severely and permanently disabled afterwards. That person may be able to transfer their base year value a second time.
What is the deadline for filing a claim?
Generally, you must file your claim with the county assessor within three years of the acquisition or completion of construction of the replacement property.
Which counties have adopted an ordinance to allow such transfers?
Currently, eleven counties have an ordinance establishing the inter-county base year value transfer provisions of Proposition 90.
If the replacement property is in a different county than the original property, only the replacement property must be located in one of the eleven counties. If a county has an ordinance, it will accept a base year value transfer from any other county in California as long as all the requirements are met.
Currently Participating California Counties:
- San Mateo
- Los Angeles
- Santa Clara
- El Dorado*
- San Diego
- San Bernardino
*On December 12, 2017, the El Dorado County Board of Supervisors approved a rescission of their ordinance, which will expire on November 7, 2018.
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