Keep Your Prop 13 Tax Rate When You Move
Whit Prouty has 3 questions for you.
Are you or your spouse over 55?
Would you like to be able to move your current property tax rate to a new home?
Do you know about Propositions 60/90?
If you or your spouse that resides with you is age 55 or older, you may buy or construct a new home of equal or lesser value than your existing home and transfer the trended base value to your new property.
This is a one-time only benefit. You must buy or complete construction or your replacement home within 2 years of the sale of the original property. Both the original home and the new home must be your primary place of residence. A claim must be filed within 3 years of purchasing or completing construction of the replacement property. If a claim is filed after the three-year period, relief will be granted beginning with the calendar year in which the claim was filed.
Once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again.
The replacement property must be your primary residence and must be eligible for the Homeowner's Exemption or Disabled Veterans' Exemption.
The replacement property must be of equal or lesser "current market value" than the original property.
The replacement property must be purchased or built within 2 years (before or after) of the sale of the original property.
Your original property must have been eligible for the Homeowner's or Disabled Veterans' Exemption.
You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.
Frequently Asked Questions
Q. What is the difference between Proposition 60 and Proposition 90?
A. Proposition 60 relates to transfers within the same county (intra-county). Proposition 90 relates to transfers of base value from one county to another participating county in California (inter-county).
Q. What is the Propositions 60/90 filing deadline?
A. A claim must be filed within three years of purchasing or completing new construction of the replacement property. If a claim is filed after the three-year period, relief will be granted beginning with the calendar year in which the claim was filed.
Q. My original home is located outside Los Angeles County, but my replacement home is in Los Angeles County. Do I qualify for relief?
Q. What does "equal or lesser value" of a replacement property mean?
A. The meaning of "equal or lesser value" depends on when you purchase the replacement property. In general, equal or lesser value means:
100% or less of the market value of the original property if a replacement property was purchased or newly constructed before the sale of the original property, or
105% or less of the market value of the original property if a replacement property was purchased or newly constructed within the first year after the sale of the original property, or
110% or less of the market value of the original property if a replacement property was purchased or newly constructed within the second year after the sale of the original property, or
When making the "equal or lesser value" test, the "market value" of a property is not necessarily the same as the sale or purchase price. The Assessor will determine the market value of each property. In some new developments, the indicated sale price does not include upgrades paid for outside of escrow. The Assessor must consider the value of these upgrades when determining the market value of the property.
If the market value of your replacement dwelling exceeds the "equal or lesser value" test, no relief is available. It is "all or nothing" with no partial benefits granted.
Basic eligibility requirements for (one time only) tax base transfer
Homeowner (or spouse, or co-owner) must be 55 or older
Replacement residence must equal to, or less than, the value of the residence being sold
Replacement residence must be located in the same county as residence being sold… or must be located in on of the counties which participate in Proposition 90
The replacement property must be purchased, or newly constructed, within 2 years (before or after) the sale of the original property
The counties listed below have voted to adopt the ordinance. For complete information on the status of ordinances to implement the inter-county base year value transfer provisions of Proposition 90, please call the counties listed below:
Alameda County: #510-272-3787
El Dorado County: #530-621-5755
Los Angeles County: #213-974-3211
Orange County: #714-834-2745
Riverside County: #951-955-6200
San Diego County: #619-531-5481
San Mateo County: #650-363-4500
Santa Clara County: #408-299-2401
Ventura County: #805-654-2181
Replacement dwellings purchased or newly constructed on or after the effective date of the appropriate county's Proposition 90 ordinance may be eligible for the transfer of the base year value from an original property located in any other county within the state, provided all other eligibility requirements are also met. It is important that you contact the assessor's office in the county of the replacement property to make certain of the latest rule governing Proposition 90.
Disclaimer: Material discussed is meant for general illustration purposes only and it is not to be construed as tax, legal or investment advice. Although information has been gathered from sources believe if you need more information or need to talk about the specific home you want to sell to be reliable, please note that individual situations can vary, therefore, please consult a tax or legal professional for specific advice.and type of home you hope to buy now, call me, Whit Prouty, at #310-962-6942. I will be happy to make an appointment with you to come to your home and discuss the incredible benefits of Propositions 60/90. This valuable information can save you thousands and thousands of dollars over the course of ownership of your new home and you should know about it.
For all of your Real Estate needs, I am here to help you.