California Proposition 60/90
California Proposition 60/90
Today one of my clients asked me if they were eligible to take their tax base to their new home.
I will talking about 2 California Propositions 60 and 90 that passed in 2007
These constitutional tax initiatives are tied together to allow senior citizens to transfer their property tax base from their current home to a replacement property if certain requirements are met. This may result in substantial tax savings.
You, must have been at least 55 years of age when the property was sold
Proposition 60 allows transfer of property tax base within the same county (intracounty).
Proposition 90 allows transfers from one county to another county in California (intercounty) and it is the discretion of each county to authorize such transfers. At this time there are 8 counties who are partiscipating in prop 90 and they are: Alameda, Los Angeles, Orange, San Diego, Ventura, Santa Clara, El Dorado, and San Mateo.
In 2007 home prices were extremely high and seniors who had purchased homes 20 years ago may have a property tax base around $2,000.00. Where as is 2007 the new home purchase may have a property tax base closer $6000.00 for a smaller home. Proposition 60 made it possible to sell their large home and move into a smaller home and still keep their lower tax rate.
For more information go to the California State Board of Equalization website at
www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm
