Proposition 60 relates to transfers within the same county (intra-county).
Proposition 90 relates to transfers of base value from one county to another county in California (inter-county).
In most cases, these constitutional tax initiatives allow senior citizens to transfer the trended base value from their current home to a replacement property if certain requirements are met.
This may result in substantial tax savings.
This is a one-time only benefit, so once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again.
When making the “equal or lesser value” test, 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.
In some new developments, the indicated sale price does not include upgrades paid for outside of escrow.
The Assessor must consider the value of these upgrades when determining the market value of the property. If the market value of your replacement dwelling exceeds the “equal or lesser value” test, no relief is available. It’s “all or nothing” with no partial benefits granted.
Who qualifies?
If you or your spouse that resides with you are age 55 or older, you may buy or construct a new home of equal or lesser value than your existing home and transfer the trended base value to your new property.
You must buy or complete construction of your replacement home within two years of the sale of the original property.
Both the original home and the new home must be your principal place of residence.
A claim must be filed within three years of purchasing or completing new construction of the replacement property.
If a claim is filed after the three-year period, relief will be granted beginning with the calendar year in which the claim was filed.