Proposition 60, For sellers over 55 years old

California Proposition 60, also known as the Transfer of Base Year Value for Persons Age 55 and Over, allows individuals aged 55 or older to transfer the assessed value of their primary residence to a new home, thereby potentially reducing their property tax burden. Here are the key details:

Key Features of Proposition 60

1. Eligibility:
   • The claimant or their spouse must be at least 55 years old at the time the original property is sold.
   • The original property must qualify for the Homeowners’ Exemption or Disabled Veterans’ Exemption at the time of sale or within two years of purchasing the replacement property [1].
2. Transfer Conditions:
   • The replacement property must be of equal or lesser value than the original property. This is defined as:
     • 100% or less of the market value if the replacement is purchased before the original property is sold.
     • 105% or less if purchased within one year after the sale.
     • 110% or less if purchased within two years after the sale [2][3].
   • The replacement property must be purchased or newly constructed within two years of the sale of the original property [1].
3. Filing a Claim:
   • To receive retroactive relief, claims must be filed within three years of the purchase date or completion of new construction of the replacement property. Claims filed after this period will only receive prospective relief [2][3].
4. One-Time Benefit:
   • This benefit can only be claimed once by the individual or their spouse. However, if the claimant becomes disabled after receiving this benefit, they may transfer the base year value a second time due to the disability under a different provision (Proposition 110) [1][3].
5. Intercounty Transfers:
   • Proposition 60 allows for transfers within the same county (intracounty), while Proposition 90 allows for transfers between counties (intercounty) if the receiving county has authorized such transfers. As of the latest updates, several counties in California have enacted ordinances to accept intercounty transfers [1][3].

Conclusion

Proposition 60 provides significant tax relief opportunities for seniors looking to relocate within California, allowing them to maintain their property tax base. It is essential for eligible individuals to understand the specific requirements and timelines to take full advantage of this benefit.

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Learn more:

1. Propositions 60/90 – Transfer of Base Year Value for Persons Age 55 and Over
2. Age 55+ (Before 4/1/21-Prop 60)
3. Understanding Propositions 60 and 90 – Casa Divina Real Estate