PROPOSITION 60 & 90
Under Propositions 60 and 90, a 55+ homeowner may transfer of the lower property tax base may only be done once and the homeowner must buy or build a new home and sell within two years. Important Dates to Remember for Prop 60 & Prop 90: the date the original property is sold, the date the replacement dwelling is purchased, if the replacement home is a a new construction, the date the new construction of the replacement home is completed. You must be at least 55 years old when your original property (primary residence) sells.
Proposition 60 allows transfers of base year values within the same county (intra-county).
For example, seniors who sell their primary house in San Diego County and relocate and buy another house in San Diego County.
Proposition 90 allows transfers from one county to another county in California (inter-county) and it is the discretion of each county to authorize such transfers.
What type of properties can seniors buy under Proposition 60/90 to be eligible for the property tax savings?
Property tax relief for seniors may be granted for a single family residence, condominium, unit in planned development, cooperative housing, community apartment, manufactured home subject to local real property tax, or living unit within a larger structure consisting of both residential and non-residential accommodations.
What are the eligibility requirements to take advantage of the tax savings for seniors under Propositions 60/90?
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.
How do seniors 55 and older file for Proposition 60/90 tax relief?
This property tax senior relief is not automatic. After selling your existing home and buying a replacement home in one of the participating counties in California, an application must be filed with the county assessor where the replacement property is located.