Keep your property tax rate when you move

Propositions 60 and 90 were passed by California voters and lets you transfer your current property tax rate to your new home sell and purchase your primary residence. These propositions apply if you or your spouse are 55 or older. In some situations the rules also apply to permanently disabled individuals (prop 110).

This is not intended as tax advice, I am not qualified to offer that so please check with your accountant, attorney and the county assessor to verify you qualify.

The basic rules are:

  1. The home must be your primary residence.
  2. You or your spouse must be 55 or older when you sold your primary residence.
  3. The replacement property must be purchased two years before or after you sell your primary residence.
  4. This exclusion may only be used once in a lifetime.
  5. The replacement property must be of equal or lesser market value.
    1. 100% if purchased before the sale of your home
    2. 105% if purchased up to one year after the sale
    3. 110% if purchased in the second year.
  6. Prop 60 only applies if you new home is in the same county as the one you sold.
  7. Prop 90 allows transfer to a different county if the new county allows. Most counties do not follow prop 90 so check with the assessor before you count on this. Counties change their rules so check again even if you have previously done so.

The counties take the rules very seriously so don’t think or try to “beat the system” because it will come back to bite you. Also, the rule refers to market value and in some cases counties are looking at REO (Bank Owned Homes) as not selling at market value. For more information look at the Board of Equalization web site.

Warren Carreiro, Broker.

One Response to “Keep your property tax rate when you move”

  1. Handyman in Jacksonville Says:

    Your post is very well crafted and I have learned. Ive added your blog to my reading material. Thanks for the update!

Leave a Reply