55!

Proposition 60 offers Californian's over the age of 55 tremendous benefits when selling AND buying a home.  Find out how Prop 60 can provide you with a lower tax base on your new home.

Are you over 55 and thinking about selling your home and moving into something smaller, but are worried about the lax implications when you relocate? lf so, know there are options and opportunities. As the "baby boomers" and Seniors find themselves having reached retirement age and becoming empty nesters, their housing needs are changing along with their lifestyles- properties taxes become an important part of the decision. California's have options... Fortunately some relief, in theform of Proposition 60, is available.

What is Proposition 60 (Prop 60)?

Proposition 60 is a constitutional amendment, approved by California voters, that provides property tax relief under certain circumstances. Essentially, what Prop 60 does is allow qualifying property owners to replace their primary residence with a new home of equal or lesser value and maintain their same tax base. (There are a couple of slight increases within the approved guidelines: read below.) Why, you might wonder, would anyone want to do that? Wouldn't my property taxes be less on a home of lesser value? Not necessarily. With Prop 60, what is transferred is the Proposition 13 or "base year value" of the old home, which can be substantially less than the current market value of either home. (There are an estimated 115,000 or more San Diego homeowners who have lived in their present IRC 121 property for 15 years or longer)

How can I qualify for Prop 60?

• Both the original home and the new home must be located in the same county.
• Both the original and replacement properties must be your primary residence.
• Both properties must be eligible for the Homeowners' Exemption (lRC 121) or Disabled Veterans' Exemption.
• The seller or spouse residing in the home must be at least 55 years old when the original property is sold.
• The replacement home must be of equal or lesser value than the current market value of the original home. There is a little wiggle room within this rule, depending on when the "new property" is purchased. For the purchase of a home (or completion of new construction) that occurs 1 to 2 years after the sale of the original home, the "equal or lesser" rule can change slightly. Talk to your county assessor for details on this.
• Purchase or completion of conslruction of the replacement property must be compleled within two years of the sale of theoriginal property.
• Application for tax relief must be filed within 3 years of the purchase (or completion of construction) of the "new/replacement home".
• This is a once in a lifetime benefit. Neither spouse can file again.

How do I file for Proposition 60 tax relief?

Contact your county assessor's office. The assessor will determine if the transaction qualifies and provide you with claim forms.

Outside of San Diego County: Check out Proposition 90. Why is this important?

Proposition 90 is an amendment that permits the property owner to carry the benefits of Prop 60 throughout California. Each county in California has the option to accept tax base transfers from other counties, allowing qualifying homeowners more flexibility when planning a move. Counties are not required to participate, and currently there are only 7 counties in California that accept Prop 90. These counties include: Los Angeles, Orange, Ventura, San Diego, Alameda, San Mateo and Santa Clara. This number is subject to change, as counties have the option to repeal their participation.

Prop 60 and Prop 90 are great extensions of Proposition 13, which was the initial break offered to the taxpaying public. lf you think either might be something that will work for you, please consult your tax advisor or your county assessor for details.