Did you know that Proposition 60 and Proposition 90, constitutional amendments passed by California voters in 1986, provide property tax relief for people 55 and over and the permanently disabled? Prop 60 covers intra-county moves and allows qualified homeowners to transfer a property’s factored base year value from an existing residence to a replacement residence of equal or lesser current market value.
What this means is this: If your home was originally assessed at $17,000 and was currently appraised at $400,000 and you want to buy a home within the same county (or other participating counties), say, for $395, 000, you can sell your home, but the new one, and that new one will be assessed at $17,000. Which means much lower property taxes.
Certain requirements need to be met, of course, including:
- 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 replacement property must be purchased or built within two years (before or after) of the sale of the original property.
If you’re thinking about moving and you’re over 55 or disabled, moving could be a lot less expensive than you think!
For more information on check out the California State Board of Equalization or give us a call at 619-993-1565.