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Proposition 60 & 90 Update
Proposition 60, under certain requirements, allows a homeowner 55
years of age or older at the time of the sale of his principal residence,
to transfer his tax base rate within the same County.
Proposition 90, under certain County requirement, allows a home owner
55 years of age or older at the time of the sale of his principal
residence, to transfer his tax base rate from one County to another.
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Tax Base from one principal place of residence to another principal place of residence in county
only.
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One of the property owners must be at least 55 years old on the day of transfer of the principal place of residence.
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The subsequent principal place of residence must be transferred ie: close escrow/purchased etc. within two years of the transfer date
of the first principal place of residence.
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A five percent inflation allowance is allowed if the subsequent purchase is less
than one year of sale date of the original place of residence.
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A ten percent inflation allowance is allowed if subsequent purchase is at least one year and one day but less than two years of the original
property.
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Please remember, if you purchase a replacement principal place of
residence prior to closing escrow on the residence you want to transfer
your tax base from, you do not have an inflation allowance. Your former
home must sell for at least what was paid for the replacement residence.
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ALL PRO. 60 TRANSACTIONS MUST BE COMPLETED WITHIN TWO YEARS!!
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For further information contact the local county assessors office where
you desire to move.
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If the you wish to purchase a new principal residence prior to the sales completion of
your original principal residence you do not have an inflation allowance.
EXAMPLE
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Home is purchased under proposition 60 & 90 for the amount of $200,000 before
the sale is completed on the original home. (DEED RECORDED).
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The homeowners must be certain the original home will sell for at least $200,000.
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If the original home sells for less than the new purchase, in this example, the homeowner would not be able to transfer his lower property taxes to
his new home.
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It is always a safer situation if the homeowner sells his principal place of residence first. (He now knows what options he has).
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Alameda 415-272-3755
Kern 805-861-2311
Los Angeles 213-974-3101
Modoc 916-233-3939
Orange 714-834-2746
San Diego 619-531-5507
San Mateo 415-363-4500
Santa Clara 408-299-4347
Ventura 805-654-2181
It is essential that you call the co-operating County in question, to verify that they are currently accepting the value transfer under
Proposition 90, and their requirements. To receive a monthly update or further information on
Proposition
90, please contact the Orange County Assessors Office at 714/834-2746.
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