Propositions 60 & 90 – Will They Work For You?

Posted on April 10, 2007. Filed under: Home Buyers, Home Sellers |

“Will Propositions 60 & 90 Work For Me?” is a question that many San Diego CA residents find themselves asking.  I would like to shed some basic light on this topic. 

Proposition 60, under certain requirements, allows for a homeowner 55 years of age or older at the time of the sale of his/her principal residence, to transfer his tax base rate within the same County.

Proposition 90, under certain County requirements, allows a home owner 55 years of age or older at the time of the sale of his principal residence, to transfer his tax base rate from one County to another.

 Now that you have read the purpose of both Proposition 60 & 90, you can determine if either of the two could apply for your situation. 

[Guidelines for the transfer of the Property Tax Base from one principal place of residence to another principal place of residence in-county only.]

So, we already know that one of the property owners must be at least 55 years old on the day of the transfer of the principal place of residence.

The subsequent principal place of residence must be transferred (i.e. close of escrow on purchased home) within two years of the transfer date of the first principal place of residence.

IF the subsequent purchase is less than one year of sale date of the original place of residence, then a five percent inflation allowance is allowed.

IF the subsequent purchase is at least one year and one day but less than two years of the original property, then a ten percent inflation allowance is allowed.

ALL PROPOSITION 60 TRANSACTIONS MUST BE COMPLETED WITHIN TWO YEARS.

Proposition 90 will allow the inter-county transfer of the property tax base if the county supervisors have approved it.  Counties are subject to change without prior notice.  For further verification, please contact your county’s assessor’s office. 

COUNTIES CURRENTLY ACCEPTING PROPOSITION 90:

San Diego…….619-236-3771

Alameda………510-272-3787

Los Angeles….213-974-3211

Orange………..714-834-2727

San Mateo……650-363-4500

Santa Clara…..408-299-5500

Ventura……….805-654-2181

[Guidelines for Proposition 60 & 90 apply if the homeowner wishes to purchase a new principal place of residence prior to the sales completion of his original principal of residence.]

IF a new principal place of residence is purchased first, then there is no inflation allowance!

Here is an Example of how this works:

A home is purchased under Proposition 60 & 90 for the amount of $200,000 before the sale is completed on the original home.  (Deed Recorded).

The homeowner must be certain the original home where the property taxes are being transferred from will sell for at least the purchased price of his new home, $200,000 in this example.

If the original residence does not sell for at least this $200,000, the homeowner would not be able to transfer his lower property tax base to the new home.

It is always a safer situation for the homeowner to sell his/her principal residence first, as he/she then knows what his/her options will be.

If you need further assistance in aspects of Proposition 60 & 90, or would simply like to have a home evaluation done on your home for free, you may request a free home evaluation via my website, or you can contact me directly for further assistance.

https://sandiegocahomes.wordpress.com/ – Visit my Blog’s Homepage!

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