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.
The original property (the home you have sold) must be subject to reappraisal at its current fair market value at the time of sale, unless the buyer(s) of your original property also qualify the property as a replacement property for a base year value transfer due to disaster relief or a base year value transfer for a severely and permanently disabled person*. Therefore, most transfers between parents and children will not qualify. *Section 69.5 also sets forth the provisions of Proposition 110 which allows the transfer of a base year value for severely and permanently disabled persons. Except for the disability factor, the qualifications for Propositions 60/90 are same as Proposition 110.
What does “equal or lesser value” of a replacement property mean?
The market value of the replacement property as of the date of purchase must be equal or less than the market value of the original property on the date of sale. 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 were 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 were 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 were purchased or newly constructed within the second year after the sale of the original property.
In determining whether the “equal or lesser value” test is met, it is important to understand that 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. If the market value of your replacement dwelling exceeds the “equal or lesser value” test, no relief is available.
Counties Participating in Prop 60 & 90*
- Alameda County
Tel. 510- 272-3787 (Transfer Your Tax Base – Senior Citizens & Disabled Person(s) – Alameda County Information)
- El Dorado County (plans to drop out November 7th 2018)
Tel. 530-621-5719 (Property Tax Assistance For Senior Citizens and Blind/Disabled Person – El Dorado County information)
- Los Angeles County
Tel. 213.893.1239 (Guide to Propositions 60 & 90 – LA County Information)
- Orange County
Tel. 714-834-2727 (For Homeowners Age 55 Plus – Orange County Information)
- Riverside County
Tel. 951-955-3900 (Proposition 60/90 – Riverside County Information)
- San Bernardino
Tel. 909-387-8307 (Proposition 60 & 90: Seniors and Disabled Replacement Dwelling Benefit – San Bernardino Information)
- San Diego County
Tel. 619-531-5481 (Property Tax Relief for Seniors and Disabled – San Diego County Information)
- San Mateo County
Tel. 650-363-4500 (Replacement Dwelling Exclusions Under Propositions 60, 90, and 110 San Mateo County)
- Santa Clara County
Tel. 408-299-5500 (Senior Citizen Tax Base Transfer – Santa Clara County Information)
Tel. 209-533-5535 (Property Tax Exclusions – Base year Value Transfer / Prop 60/ Prop 90 Tuolumne County Information)
- Ventura County
Tel. 805- 654-2181 (Senior Citizen Programs Prop 60 – Prop 90 – Transfer of Base Year Value – Ventura County Information)
NOTES: Monterrey County is no longer participating in the program
*For more information about Prop 60 & 90 http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm#15
How do I file for Proposition 60/90 tax relief?
After both transactions are complete, an application must be filed with the county assessor where the replacement property is located. The claim form, BOE-60-AH, Claim of Person(s) at Least 55 Years of Age for Transfer of Base Year Value to Replacement Dwelling, may be obtained from the assessor’s office.