What You Need to Know About Proposition 60 / 90

04 May What You Need to Know About Proposition 60 / 90

Sellers who are 55 and over may be eligible via Proposition 60 (intracounty transfer) /90 (intercounty transfer) for a transfer of property tax base on their primary residence.

Eleven counties in California have ordinances for intercounty tax transfer.

Here’s the list:

1. Alameda
2. El Dorado
3. Los Angeles
4. Orange
5. Riverside
6. San Bernardino
7. San Diego
8. San Mateo
9. Santa Clara
10. Tuolumne
11. Ventura

Counties may update their ordinances. Call the county for the most current information on their policies. Each county assessor has their own 60/90 application. The application must be filed with the assessor for the county where the replacement property is located. A list of all counties (even those who do not have Proposition 90 ordinances) can be found here: http://www.boe.ca.gov/proptaxes/assessors.htm )

While the ordinances are generally understood, there are some fine points that should be noted when advising your clients.

If your seller has the home in a trust: Being the trustee of the trust does not mean they are the sole beneficiary of the trust. To be able to apply for Prop 60/90, your seller will need to be the beneficial owner of the trust, not only the trustee.

Sale price is not always the market value: The replacement property needs to be of equal or lesser market value than the original property. This is not always the sale price.

Co-owners cannot both qualify: Only one of the owners can receive the 60/90 benefit. They must discuss it amongst themselves to see who will be taking the benefit.

For more information on the propositions and the necessary qualifications to apply go to the California Board of Equalization’s website.http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm#1