Proposition 60 and Proposition 90

OVER 55?  CALIFORNIA PROPERTY TAX RELIEF

Since its passage, Proposition 13 prohibits property tax increases until property ownership is changed.

If either spouse is over age 55, PROP 60 allows replacement of a primary residence with a new home of equal or lesser value (but see below) within the same county and transfer of the Prop 13 assessed valuation from the old home to the new property.

PROP 90 allows counties to elect to accept transfers of Prop 13 values for moves from other counties when a primary residence is replaced with a less expensive (but see below) home. If you are over 55 and move into a county that accepts Prop 90, you may take your old, lower Prop 13 value, regardless of from which county you move.

Using Prop 90, you can sell your $400,000 San Francisco home [assessed value $80,000] and move to a new $300,000 home in San Mateo; the new San Mateo assessed value will be $60,000!

COUNTIES WHICH ACCEPT PROP 90

Alameda, Los Angeles, Kern, Modoc, Monterey, Orange, San Diego, San Mateo, Santa Clara, and Ventura. [Contra Costa, Inyo, Riverside, and Marin have dropped out of the Prop 90 program.]

Props 60 and 90 apply if you "trade down" (i.e. the new home costs less than the sales price of the old home). In some cases you may buy for 10% more than the sales price of the old home.

 Click Here For A Chart

This information contained herein is designed to provide accurate and authoritative information in regard to the subject matter covered. It is given with the understanding that the author is not engaged in rendering legal service. If legal advice or other expert assistance is required, the services of a competent legal advisor should be sought.