Property Tax Benefits for Seniors:
Proposition 60/90 is a California State Law (1986) that allows a property tax reappraisal exclusion for seniors 55 and older to move to a replacement home and bring their old tax base from their last principal residence with them. There are certain restrictions, but in general, it is a wonderful way for many seniors to afford to make a move today. Below are the basic requirements to use this law:◼ Values based on market value, not necessarily sales price as determined by assessors.
◼ Can only be used once by the people selling (see Prop 110 below).
◼ Replacement home must be no more than 105% of 1st home sold value if bought within one year, and no more than 110% if bought within two years. Must buy the next home within 2 years and latest time to file for this benefit is 3 years.
◼ One owner must be 55 or older.
◼ With a divorce or multiple owners, the first person to apply for Prop. 60 gets 100% of the benefit.
◼ Only 7 counties allow incoming transfers from another county, which is known as Prop. 90: San Mateo, Santa Clara, Alameda, Los Angeles, Orange, San Diego, and Ventura.
◼ Must have or could have had a homeowner’s exemption on the sold home.
◼ Can be used with new or resale replacement homes.
◼ Proposition 110 is a law that allows a severely and permanently disabled person who has had a previous Prop 60/90 benefit to be granted one more reassessment exclusion.
◼ Proposition 58 - Parent/Child Exclusion (or could be child to parent) is similar tax benefit that could be a factor to help some people with a downsize solution. AB 47 excludes the transfer of a principal residence between parents and children from reappraisal. There is no required maximum amount to the home’s value. It also allows any other real property(s) up to $1,000,000 in lifetime value to be excluded for each transferor (both father/mother and both child/spouse).
◼ “Children” must be natural, step, in-law relationships, or adopted (if not as an adult).
◼ Must be filed within three years of the property transfer (other restrictions may apply on this timing.
◼ Principal residence must have a homeowner’s exemption and be “about” one acre or less in lot size.
Contact the Assessor’s office for specific details.
For many Baby-boomers and seniors these property tax exclusions are the exact thing that they may be looking for to make a downsize move.
