Why do you want to sell? What concerns do you have before listing your home? Sometimes the change itself is what is making you hesitant; you also might have concerns about how moving will affect your property tax rate.
KALEO Real Estate Company does not provide tax, legal, real estate consulting, or estate planning advice. However, our real estate agents are often asked about Proposition 60 and Proposition 90.
As the California State Board of Equalization website page on the Transfer of Base Year Value for Persons Age 55 and Over – Propositions 60 / 90 explains:
“Propositions 60/90 amended section 2 of Article XIIIA of the California Constitution to allow a person who is over age 55 to sell his or her principal place of residence and transfer its base year value to a replacement dwelling of equal or lesser value that is purchased or newly constructed within two years of the sale. These propositions are implemented by Revenue and Taxation Code section 69.5.
Proposition 60 allows for the transfers of a base year value within the same county (intracounty). Proposition 90 allows for the transfers of a base year value from one county to another county in California (intercounty) if the county has authorized such a transfer by an ordinance.
As of November 7, 2018, the following ten counties in California have an ordinance enabling the intercounty base year value transfer:
Alameda
Los Angeles
Orange
Riverside
San Bernardino
San Diego
San Mateo
Santa Clara
Tuolumne
Ventura
The quick difference between Prop 60 and 90:
Prop 90 – Between Counties
The California Board of Equalization has a great FAQ on Prop 60 / 90 including answering questions like:
“I am over 55, but my wife is not yet 55. Is she considered a claimant for benefits of Proposition 60? What about other co-owners?
A claimant is any person claiming Proposition 60/90 property tax relief. A claimant must be an owner or co-owner of the original property as a joint tenant, a tenant in common, or a community property owner. A spouse of the claimant is also considered a claimant if the spouse is a record owner of the replacement dwelling (and thus must provide his/her social security number on the claim).
An owner of record of the replacement property who is not the claimant’s spouse is not considered a claimant, and a claim filed for the property will not constitute use of the one-time-only exclusion by the co-owner even though that person may benefit from the property tax relief.”
This transfer of base year value is not automatic. In fact, “After the original property is sold and the replacement property is purchased and occupied as a principal residence, an application must be filed with the county assessor where the replacement property is located. The claim form, BOE-60-AH, Claim of Person(s) at Least 55 Years of Age for Transfer of Base Year Value to Replacement Dwelling, must be obtained from your assessor’s office which may offer a downloadable form from their website. You may find your assessor’s contact information by visiting the Listing of County Assessors.”
This is great information for you, family members, seniors, and anyone who makes the eligibility requirements!
If learning more about Prop 60 and Prop 90 prompts you to consider selling, then please reach out to me! You are never a bother when you email, text, and call with your real estate questions!
