If you are a California property owner and are thinking of selling your home and either you or your spouse are 55 years or older, then you may be eligible for Proposition 60/90 which will allow you to buy a new home and maintain the same property tax assessment as your current residence.

•    Prop 60 allows replacement of a primary residence with a new home of equal or lesser value along with the transfer of the Prop 13 assessed value from the old home to the new home.

•    Prop 90 allows counties to elect to accept transfers of Prop 13 values for moves from other counties when a primary residence is replaced with a less expensive home. 

As of December 28, 2010, there are eight counties which participate and accept Proposition 90. They are Alameda, El Dorado, Los Angeles, Orange, San Diego, San Mateo, Santa Clara and Ventura. 

The following are eligibility guidelines for the Prop 60/90 “Senior Exclusion”:

•    Either the seller, or a spouse residing with the seller, must be at least 55 years of age when the original property is transferred.

 

•    The filing is a one-time-only opportunity.  Prop 60/90 cannot be granted if the claimant or spouse of the claimant has already been granted this relief in the past.

•    The replacement home must be of equal or lesser "current market value" than the original property.

•    The replacement property must be purchased or built (newly constructed) within two years (before or after) the sale of the original property.

•    An application must be filed by the owner within the three years following the purchase date, or completion date of new construction, of the sale of the original property.

•    Prop 60/90 relief includes, but is not limited to: single family residences, condos, units in planned unit developments, cooperative housing, corporation units or lots, community apartment units, mobile homes subject to local real property tax, and owners' living premises which are a portion of a larger structure.

You, the taxpayer, are not eligible for this relief until you actually own AND occupy the replacement property as your principle residence.