If you’re getting ready to downsize your home then it’s time for you to learn more about Proposition 60 and 90. These property tax breaks for seniors keep your monthly payments where they are and your money where it should be – in your pocket.
What is Proposition 60?
Prop 60 allows you to transfer the base year values of your property tax from one residence to another if you’re moving within the same county.
What is Proposition 90?
Prop 90 allows you to transfer from one county to another within California. Transfers are based on each county and their individual rules.
As of September 2013, there are 9 counties to allow intercounty transfers. These ordinances are subject to change, however, so make sure to call your county assessor to verify. Here’s the complete list of counties that allow transfers:
- Los Angeles
- Santa Clara
- El Dorado
- San Diego
- San Mateo
Am I eligible for Propositions 60/90?
Here are the requirements to find out if you qualify for this property tax break:
- Must be at least 55 years old – This applies to you or your spouse and you must have been at least 55 years old when the original property was sold (the date the original property was transferred).
- Your new property must be of equal or lesser “current market value” than the original.
- The base year value cannot be transferred until the original property is sold.
- You must purchase the replacement property (or build it) within 2 years of the sale of your original property.
- You can only file Proposition 60/90 once. If you, or your spouse, were granted relief in the past you cannot claim this break again.
- To receive retroactive relief, you must file your claim within 3 years of the purchase or construction completion date of your new home.
- Must own AND occupy the replacement home as your primary residence to qualify.
What do I need to include in the application?
- Copy of the tax bill from the county where you are moving
- Copy of your birth certificate
- Copy of the grant deed for the new purchase
- Copy of the closing statements of both sale and purchase
It’s never too early to start thinking about retirement and downsizing your life. Consult with a trusted FirstTeam agent so you’re ready for your next move when the time is right.
Information credit to Western Resources Title.