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Transferring The Property Tax Base In California

Are you or your spouse over 55 years old? Did you know that Propositions 60 and 90 allow a qualified person age 55 or older to sell their principal residence and purchase or build a replacement home without any increase in taxes? There are some minimum requirements and restrictions that you should know about. The purpose is to provide an incentive for person age 55 or older to sell their residence and move into a home of equal or less value without paying more in property taxes.

Proposition 60

The county tax assessor will transfer the value of the original residence to the replacement residence. Proposition 60 requires that the replacement residence be located in the same county as the original residence.

The voters of California enacted this proposition after Proposition 60, and it allows transfer of the tax base from one county in California to another county in California if the county where the replacement property is located allows for the transfer. Some counties in California do not allow for a transfer of the previous property tax base. Before you enter into a contract for the sale or purchase you must verify with the assessor’s office in the county where the replacement property is located to determine if you will be able to apply for this property tax transfer.

How It Works

You must file an application with the county assessor’s office within the required time period. The assessor will determine if the transaction qualifies. This is a one-time benefit and you and the property both must qualify in order to successfully transfer the tax. If there is more than one owner of the original property, only one may claim the benefit as long as that person is eligible.

Need More Information

For an in depth analysis of Propositions 60 and 90 see the following publication by the State Board of Equalization:

We recommend that you consult with your tax advisor, accountant and/or attorney regarding you specific situation.