Prop 60 & 90

Prop 60 & 90
What Is It & How Does It Work?


Prop 60 & 90 provide tax relief by preventing property reassessment for residential home owners 55 years or older who are selling a residential home and buying another residential home within CA. Essentially Prop 60 & 90 are the same concept, but the main difference between the two is Prop 60 is for when you sell a residential home and buy another residential home in the same county in CA. Prop 90 is where you sell a residential home in one county and buy another residential home in another county in CA.

What are the Qualifications?

The seller of the original residence, or spouse who resides with the seller, must be at least 55 years of age at the time of the sale

The replacement home must be of equal or less value than the home sold, AND…

The replacement home must be either in the same county or another participating county.

What does “equal or lesser value” of a replacement property mean?

The market value of the replacement property as of the date of purchase must be equal or less than the market value of the original property on the date of sale. The meaning of “equal or lesser value” depends on when you purchase the replacement property. In general, equal or lesser value means:

100% or less of the market value of the original property if a replacement property were purchased or newly constructed before the sale of the original property, or

105% or less of the market value of the original property if a replacement property were purchased or newly constructed within the first year after the sale of the original property, or

110% or less of the market value of the original property if a replacement property were purchased or newly constructed within the second year after the sale of the original property.

In determining whether the “equal or lesser value” test is met, it is important to understand that the market value of a property is not necessarily the same as the sale or purchase price. The assessor will determine the market value of each property. If the market value of your replacement dwelling exceeds the “equal or lesser value” test, no relief is available.

Is the transfer automatic with a participating county?

No, the transfer of current base-year value is not automatic. The owner must file an application for transfer with the local Assessors office of the participating county. Claims must be filed within three years following the purchase of the replacement residence. The application/claim forms are available at the local Assessors office. This is a one-time only filing. Proposition 60/90 relief cannot be granted if the claimant, or spouse, was granted relief in the past. If your original residence is in Los Angeles County, and you want to relocate in another county, contact that county’s Assessors office for Prop 90 eligibility.

What other counties participate?

Currently Alameda, El Dorado, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara and Ventura counties. However, participation is subject to change and should be verified with the local county assessor’s office.

Chuck Harper
Keller Williams Mission Viejo

949-444-6341
chuck@chuckharperhomes.com
chuckharperhomes.com
CalBRE#01995537