Proposition 60 and 90, Inter and Intra County Transfers

Proposition 60 and Proposition 90 affect homeowners, especially those who want to move, but are concerned that their property taxes will increase if they move. Proposition 60 and Proposition 90 can help homeowners over the age of 55 by providing a way for them to “keep” or transfer their base year value to their new residence.

According to the California State Board of Equalization:

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.

Older Couple Walking

Proposition 60

According to the California State Board of Equalization:

Proposition 60 allows for the transfers of a base year value within the same county (intracounty).

 

Proposition 90

According to the California State Board of Equalization:

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.

 

Participating Counties in California

Not all counties in California are participating in Proposition 90 and the inter-county base year transfer.

As of November 1, 2018, the following counties are participating

  • Alameda
  • Los Angeles
  • Orange
  • Riverside
  • San Bernardino
  • San Diego
  • San Mateo
  • Santa Clara
  • Tuolumne
  • Ventura

 

Using Prop 60 or Prop 90

The next question you may have is: “How do I use Prop 60/90? Do I automatically get to transfer my tax base year?”

According to the California State Board of Equalization:

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

 

This means that if you sold in Los Angeles County and purchased in San Diego County, then you could obtain your BOE-60-AH form from the San Diego County Assessor’s office and file it there.

 

References:

California State Board of Equalization Website
 
This material is provided for informational purposes only. Please consult the appropriate legal, tax, accounting, estate planning, or other professional for advice. KALEO Real Estate Company does not intend to advise on tax, legal, accounting, or other decisions.