A Property Tax Benefit for Sellers Age 55 and Older:
If you are a seller who is at least 55 years of age and are thinking about making a “move down” to a smaller residence, you won’t want to overlook an interesting property tax benefit which can help senior citizens.
Proposition 60 is a constitutional initiative passed by California voters. It allows homeowners who are 55 years of age and older to transfer their existing base year value of their principal residence to a new residence in the same county without paying higher property taxes than they paid on the original residence.
In order to qualify, certain conditions must be met.
Here is a summary of the guidelines:
Both the original property and the replacement property must be located in the same county (Note: If the replacement property is located in a different county, see Proposition 90. Some counties have not adopted local ordinances to implement Proposition 90. Contact the local county assessor to discuss eligibility before attempting to transfer your base year value to another county).
The seller or spouse living with the seller must be at least 55 years old on the date of the transfer of the original property.
The original property must have been eligible for the Homeowners’ Exemption or entitled to the Disabled Veterans’ Exemption.
The replacement dwelling must be of equal or lesser value than the original property. The comparison is based on the full market value as determined by the assessor, not the sales price.
The replacement dwelling must have been purchased or newly constructed on or after November 6, 1986.
Without exception, the replacement dwelling must be purchased or newly constructed within two years (before or after) of the sale of the original property.
The original property must be subject to reappraisal at its current fair market value as the result of its transfer as outlined in Sections 110 or 5803 of the Revenue and Taxation Code.
A claim for relief must be filed within three years of the date a replacement dwelling is purchased or new construction of a replacement dwelling is completed.
The Proposition 60 benefit can only be used one time.
For a full explanation of Proposition 60 eligibility requirements, contact the County Assessor’s Office in which the property is located. A completed application and a copy of your birth certificate are required. If your property has been sold and is presently in escrow, your escrow officer can assist you by providing an application or one may be obtained from the assessor.