Are you a homeowner over the age of 55 looking for property tax relief as you look to sell your old home? If so, Propositions 60 and 90 were passed to help lower the strain of high property taxes. Both amendments passed by California voters are a way to incentivize persons 55 and older to move into less expensive homes without having to pay higher property taxes for it. Propositions 60 and 90 allow for the transfer of a property’s factor base year value from your old residence to your new – replacement – home. While both Propositions exist to provide property tax relief, they do so in slightly different ways. Proposition 60 allows for intracounty transfers, or transfers of base year values within the same county. Proposition 90, on the other hand, is intercounty, which allows those same transfers from one county to the next. Depending on county laws and what you are looking for in your new property, either Prop 60 or 90 will allow for a break in high property taxes in your search for a new, less expensive home. For information on these amendments and their specific benefits, take a look at the Canseco Group for all your property tax relief questions. www.canseco.com
The all-important eligibility requirements are as follows on both Props 60 and 90:
1) On the date of the sale of the original property, you (or a spouse residing with you) must be at least 55 years old.
2) Your new replacement home needs to be your main residence and must be eligible for either the homeowner’s exemption or disabled veterans’ exemption.
3) The main tenet of both Prop 60 and 90 is your replacement property must equal or fall under the current market value of your original home.
4) Two years, as well – before or after the sale of the original home – is the limit by which the replacement property should be built or purchased.
5) The owner needs to file his or her claim before three years is up, following the point of the construction finish or initial purchase date of the new property.
6) Finally, your original property must have been eligible for either the homeowner’s exemption, or the disabled veterans’ exemption, either at the time it was sold or two years from the point of construction completion or the purchase.
This transfer of properties is a one-time only benefit bestowed upon you by Prop 60 and 90. Even if your spouse has applied/filed before, this disallows you from filing a claim again. And even in the case of divorce and/or death, the one-time only benefit statute still exists. For more detailed information on both Propositions 60 and 90, take a look at the Canseco Group for all your home buying and selling needs. With the property tax relief provided, you’ll be glad you did.
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