California Proposition 60 & Proposition 90
If you are thinking of selling your home and you are over 55, you should be aware of how these Propositions may benefit you.
Passed by voters in November 1986, applies to taxpayers who are 55 years and older. What it does is allow the transfer of Proposition 13 base-year property tax, or what ever your property tax basis is, to a new residence of equal or lesser value within the same county. It also established a two year time frame from the sale of the previous residence to the purchase of a new one. If you wait the two years, you may buy a home up to 5% more than the one you sold. Otherwise, they must be equal or less.
Passed by voters in November 1988. It authorizes counties to adopt an ordinance to allow seniors to take advantage of Proposition 60 by carrying into a new county the lower tax base they enjoyed in the former county. Seven counties have adopted Proposition 90:
- San Mateo
- Santa Clara
- Los Angeles
- San Diego
This may be done only one time in your lifetime. If a married couple takes advantange of this, a surviving spouse may not do it again.
Contact the Assessors office of the county to which you wish to move to inquire on the current status of their ordinance as it may change.