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Gosnell

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Age 55+

Information pertaining to ages 55 years or older                                     

 



 

Property Tax Base Transfer
Proposition 60
  1. What is Proposition 60?

    Prop 60 was a constitutional amendment approved by the voters of California in 1986. It is codified in Section 69.5 of the Revenue & Taxation Code, and allows the transfer of an existing Proposition 13 base year value from a former residence to a replacement residence, if certain conditions are met. This benefit is open to homeowners who are at least 55-years old (or are disabled as specified in the law), and who meet the requirements outlined in Question 2.

     
  2. How do I Qualify for this property tax benefit?

    The following conditions must be met for tax relief to be granted under Prop 60:

     
    1. Both the original property (former residence) and its replacement must be located in the same county unless another County agrees to the transfer under Proposition 90.
      Currently, there only a few other counties,  Alameda, San Mateo, San Diego, Orange, Los Angeles and Santa Clara. Check with the County Tax Assessor to see that they have not voted out this Proposition. 

       
    2. As of the date of transfer of the original property, the seller or a spouse living with the seller must be at least 55 years old.

       
    3. The original property must have been eligible for the Homeowners’ Exemption or entitled to the Disabled Veterans’ Exemption.

       
    4. The replacement dwelling must be of equal or lesser value than the original property.  In general, equal or lesser value means that the fair market value of a replacement property on the date of purchase or completion of construction does not exceed 100 percent of market value of original property as of its date of sale if a replacement dwelling is purchased before an original property is sold; 105 percent of market value of original property as of its date of sale if a replacement dwelling is purchased within one year after the sale of the original property; 110 percent of market value of the original property as of its date of sale if a replacement dwelling is purchased within the second year after the sale of the original property.

       
    5. Without exception, the replacement dwelling must be purchased or newly constructed within two years (before or after) of the sale of the original property.

       
    6. The original property must be subject to reappraisal at its current fair market value as the result of its transfer, in accordance with Sections 110.1 or 5803 of the Revenue and Taxation Code.

       
    7. To receive the full Prop 60 benefit, a claim for relief must be filed within three years of the date a replacement dwelling is purchased or new construction of a replacement dwelling is completed.

      Claims made after the three–year filing period will receive the base year transfer on a prospective basis only.

       
    8. If a claimant purchases land more than two years prior to the sale of the original property but completes construction of the replacement residence within two years of the sale of the original property, the base year value of the original property may be transferred to the land and the newly constructed residence, provided that the other statutory requirements are met. (This interpretation was the result of a reversal by the State Board of Equalization issued in Letter 2002/019, and dated March 19, 2002.).

       
     
  3. Is it true that only one claimant, out of several co-owners of a replacement dwelling, need be at least 55 as of the date of sale of an original property?

    Yes, but the claimant must be an owner of record. Either the claimant or their spouse must also have been an occupant of the original property and at least 55 years old on the date of sale.

     
  4. Can a taxpayer apply for and receive the benefit of Prop 60 more than once?

    No. You are not eligible if you have been previously granted this benefit.

    For more information contact the Ventura County Assessor's Office at (805) 654-2176 or their web site, Ventura County Assessor's office .  The following link is for the current Transfer Tax Base form.

    For information on transfer status on other counties, click on this link,  California Counties.


    The information above is for general information purposes only.  It is always recommended that you seek advice from qualified legal and tax professionals regarding all legal and tax matters

 

 
 


 

 

 

 


 

 

 

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