|
|
|
 |
Age 55+
Information pertaining to ages 55 years or older
|
Property
Tax Base Transfer
Proposition 60 |
- What is Proposition 60?
Prop 60 was a constitutional
amendment approved by the voters of
California in 1986. It is codified
in Section 69.5 of the Revenue &
Taxation Code, and allows the
transfer of an existing Proposition
13 base year value from a former
residence to a replacement
residence, if certain conditions are
met. This benefit is open to
homeowners who are at least 55-years
old (or are disabled as specified in
the law), and who meet the
requirements outlined in Question 2.
- How do I Qualify for
this property tax benefit?
The following conditions must be met
for tax relief to be granted under
Prop 60:
- Both the original property
(former residence) and its
replacement must be located in the
same county unless another County
agrees to the transfer under
Proposition 90.
Currently, there only a few other
counties, Alameda, San
Mateo, San Diego, Orange, Los
Angeles and Santa Clara. Check
with the County Tax Assessor to
see that they have not voted out
this Proposition.
- As of the date of transfer of
the original property, the seller
or a spouse living with the seller
must be at least 55 years old.
- The original property must
have been eligible for the
Homeowners’ Exemption or entitled
to the Disabled Veterans’
Exemption.
- The replacement dwelling must
be of equal or lesser value than
the original property. In
general, equal or lesser value
means that the fair market value
of a replacement property on the
date of purchase or completion of
construction does not exceed 100
percent of market value of
original property as of its date
of sale if a replacement dwelling
is purchased before an original
property is sold; 105 percent of
market value of original property
as of its date of sale if a
replacement dwelling is purchased
within one year after the sale of
the original property; 110 percent
of market value of the original
property as of its date of sale if
a replacement dwelling is
purchased within the second year
after the sale of the original
property.
- Without exception,
the replacement dwelling must be
purchased or newly constructed
within two years (before or after)
of the sale of the original
property.
- The original property must be
subject to reappraisal at its
current fair market value as the
result of its transfer, in
accordance with Sections 110.1 or
5803 of the Revenue and Taxation
Code.
- To receive the full Prop 60
benefit, a claim for relief must
be filed within three
years of the date a
replacement dwelling is purchased
or new construction of a
replacement dwelling is completed.
Claims made after
the three–year filing period will
receive the base year
transfer on
a prospective
basis only.
- If a claimant purchases land
more than two years prior to the
sale of the original property but
completes construction of the
replacement residence within two
years of the sale of the original
property, the base year value of
the original property may be
transferred to the land and the
newly constructed residence,
provided that the other statutory
requirements are met. (This
interpretation was the result of a
reversal by the State Board of
Equalization issued in Letter
2002/019, and dated March 19,
2002.).
- Is it true that only one
claimant, out of several co-owners
of a replacement dwelling, need be
at least 55 as of the date of sale
of an original property?
Yes, but the claimant must be an
owner of record. Either the claimant
or their spouse must also have been
an occupant of the original property
and at least 55 years old on the
date of sale.
- Can a taxpayer apply for
and receive the benefit of Prop 60
more than once?
No. You are not eligible if you have
been previously granted this
benefit.
For more information contact the Ventura
County Assessor's Office at
(805) 654-2176 or their web site,
Ventura County Assessor's office
. The following link is for
the current Transfer
Tax Base form.
For information on transfer status
on other counties, click on this
link,
California
Counties.
The
information above is for general
information purposes only. It is
always recommended that you seek
advice from qualified legal and tax
professionals regarding all legal
and tax matters
|
|
|
| |
| |
|
|
