Property Tax Transfers
What is Proposition 60?
Prop. 60 was a constitutional amendment approved by the voters of California in 1986. It is codified in Section 69.5 of the Revenue & Taxation Code, and allows the transfer of an existing Proposition 13 base year value from a former residence to a replacement residence, if certain conditions are met. This benefit is open to homeowners who are at least 55-years old and are able to meet all qualifying conditions.
What is Proposition 90?
Proposition 90 has the same provisions and qualifications as Proposition 60. The difference is that it allows base year transfers from one county to another county in California. The only counties that have adopted an ordinance to allow values from other counties are:
The County of Orange Assessor’s Office provided these answers to questions often asked regarding Proposition 60/90:
- How do I qualify for these property tax benefits?
- Is it true that only one claimant, out of several co-owners of a replacement dwelling, need be at least 55 as of the date of sale of an original property?
- Can a taxpayer apply for and receive the benefit of Prop. 60/90 more than once?
- What is meant by "equal or lesser value" than the original dwelling?
- Is the "equal or lesser value" test a simple comparison of the sales price of the original property and the purchase price or cost of new construction of the replacement dwelling?
- If the current full cash value of my replacement dwelling slightly exceeds the full market value of my original property, can I still receive a partial benefit?
- May I give my original property to my child and still receive the Prop. 60/90 benefit when I purchase a replacement property?
- Is the Assessor prevented from issuing supplemental assessments when the factored base-year value is transferred from an original property to a replacement dwelling under Prop. 60?
- Can I qualify for the benefits of Prop. 60/90 when I sell my original property (owned by me alone) and purchase a replacement dwelling with several co-owners? What if I own only a 10 percent interest in the replacement dwelling?
- Can two otherwise qualified taxpayers who have recently sold their separately owned original properties combine their claim for Prop. 60/90 benefit when they buy a single replacement dwelling together?
- May I, as a former co-owner of an original property, receive partial benefit on my replacement dwelling, along with other co-owners who purchase separate replacement dwellings?
- What if I am the co-owner of a property with more than one residential unit?
- Does a person qualify for the Prop. 60/90 benefit when he/she sells an original property, then buys a replacement dwelling within two years, but no longer qualifies for a Homeowners' Exemption on the original property that sold nearly two years before?
- Can I receive Prop 60. benefits if my original property is outside Orange County but my replacement dwelling is inside Orange County?
- Can I receive Prop. 60 benefits if my original property is inside Orange County but my replacement dwelling is in another county in California?
- If the transfer of my base year value to the replacement dwelling results in a supplemental assessment that is a refund, do I still have to pay the existing annual roll tax bill on the replacement property or will that bill be adjusted to reflect the new, lower value?
PLEASE ADVISE YOUR TAX EXPERT AND/OR ATTORNEY BEFORE MAKING ANY DECISIONS