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Transfer of Base Year Value for Persons Age 55 and Over – Propositions 60/90

by Carla Griffin on December 1, 2018

Description

Propositions 60/90 amended section 2 of Article XIIIA of the California Constitution to allow a person who is over age 55 to sell his or her principal place of residence and transfer its base year value to a replacement dwelling of equal or lesser value that is purchased or newly constructed within two years of the sale. These propositions are implemented by Revenue and Taxation Code section 69.5.

Proposition 60 allows for the transfers of a base year value within the same county (intracounty). Proposition 90 allows for the transfers of a base year value from one county to another county in California (intercounty) if the county has authorized such a transfer by an ordinance.

As of November 7, 2018, the following ten counties in California have an ordinance enabling the intercounty base year value transfer:

Alameda
Los Angeles
Orange
Riverside
San Bernardino
San Diego
San Mateo
Santa Clara
Tuolumne
Ventura

Since the counties indicated above are subject to change, we recommend contacting the county assessor’s office to which you wish to move to verify eligibility.

Eligibility Requirements for Propositions 60/90:

Claimant

  • You, or a spouse residing with you, must at least 55 years of age when the original property is sold.
  • This is a one-time only benefit. Once you have filed for and received this tax relief, neither you nor your spouse who resides with you, can ever file again, even upon your spouse’s death or if the two of you divorce. However, if you become disabled after receiving this tax relief, you may transfer the base year value of your personal residence a second time due to the disability, which involves a different claim form (see Proposition 110).

Original Property

  • Your original property must eligible for the Homeowners’ Exemption or Disabled Veterans’ Exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.
  • The original property must be subject to reappraisal at its current fair market value at the time of sale.

Replacement Property

    • 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 value” than the original property.In general, equal or lesser value means:
      • 100% or less of the market value of the original property if a replacement property were purchased or newly constructed before the sale of the original property, or
      • 105% or less of the market value of the original property if a replacement property were purchased or newly constructed within the first year after the sale of the original property, or
      • 110% or less of the market value of the original property if a replacement property were purchased or newly constructed within the second year after the sale of the original property.

Note: 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 replacement property must be purchased or built within two years (before or after) of the sale of the original property

File a Claim

To receive retroactive relief from the date of transfer, you must file your claim within three years of:

  • The purchase date of the replacement property; or
  • The new construction completion date 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

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