Proposition 60/90/110 (Property tax transfer of Base Year Value)
No comments Thursday, July 2, 2009
What are propositions 60, 90, and 110?
Propositions 60, 90, and 110 are constitutional amendments approved by the voters of California. They provide for the transfer of a property’s base year value (the purchase price of when the home was purchased) from an existing residence to a replacement residence, under certain conditions, for qualified persons over the age of 55 or persons of any age who are severely and permanently disabled.
What are the conditions that need to be met in order to qualify for Proposition 60 and 90 exclusions?
The existing property and the replacement property must be located in the same county, unless the county in which the replacement residence is located has an ordinance that allows inter-county base year value transfers.
As of the date of the transfer of the original property, the transferor (seller) or a spouse residing with the transferor must be at least 55 years of age or be severely or permanently disabled.
At the time of the sale, the original property must have been eligible for the Homeowner’s Exemption or entitled to the Disabled Veterans’ Exemption.
Generally, the replacement dwelling must be of equal or lesser value than the original property.
The replacement dwelling must have been acquired or newly constructed within two years of (before or after) the sale of the original property.
The owner must file an application within three years following the purchase date or new construction completion date of the replacement property.
The original property must be subject to reappraisal at its current fair market value; therefore, transfers of the original property that are excluded from reappraisal (example: most transfers between parents and children) will not qualify.
How do I apply?
You must file a claim with the county tax assessor, who will determine if the transaction qualifies. Claim forms should be obtained from the assessors’ office in the county where the replacement property is located.
How do I determine if the replacement property is of equal or lesser value than the original?
Its depends on the timing of the purchase or completion of construction of the replacement property. In general “equal or lesser value” means the fair market value of the replacement property does not exceed one of the following:
-100 percent of the market value of the original property as of its date of sale, if the replacement property is purchased or newly constructed before an original property is sold.
-105 percent of the market value of the original property as of its date of sale, if the replacement dwelling is purchased or newly constructed within one year after the sale of the original property.
-110 of the market value of the original property as of its date of sale, if the replacement dwelling is purchased or newly constructed within the second year after the sale of the original property.
Can I still receive partial benefit if the value of my replacement property exceeds the ‘equal or lesser value’?
No.
Can a taxpayer apply for and receive this benefit more than once during the course of his/her lifetime?
No. However, Proposition 110 creates an exception from the one-time-only limitation for any claimant who becomes severely and permanently disabled after having previously received a base year value transfer as a claimant over the age of 55.
Which counties have adopted an ordinance to allow inter-county transfers?
As of October 2008, Alameda County, Orange County, Los Angeles County, San Diego County, San Mateo County, Santa Clara County, and Ventura County had these ordinances. (Please contact your local assessors’ office of the most current information.)
What is the deadline for filing a claim?
Generally, you must file your claim within 3 years of the acquisition or completion of construction of the replacement property.
Where can I find more information?
You can find more information at your local tax assessors’ office website.
