Homeowners 55 and older can transfer their existing property tax base to a newly purchased home within and across the following ten counties of California under Propositions 60/90.
Home values have nearly tripled over the past 16 years, meaning property taxes on home purchases have tripled too. Property tax on a median-priced home purchased in 2003 would be close to $8,000 per year. That same home at today’s median price would now have a property tax assessment of close to $20,000 per year.
This is a huge tax benefit that avoids an increase in your property tax when you decide to downsize or move closer to the grandchildren.
There are four basic requirements to qualify. This is a one-time benefit for both spouses.
1. Homeowner – or spouse must be at least 55 years of age at the time of the home sale,
2. Primary personal residence – that is eligible for the Homeowners or Disabled Veterans Exemption,
3. Replacement property – must be of “equal or lesser value” of the original property. The limit increases by 5% points per year, and
4. Replacement property – must be purchased or built within two years from sale of original property.
Easy to process the paperwork. There are a couple of forms that requests the county to reset the new property’s tax basis. Click on this link to access the specifics at the California State Board of Equalization.
I personally used this benefit when we downsized from a home that we had lived in for 25 years. I really appreciate being to make the decision without worrying about a significant increase in my annual property tax bill.
Let me know if you would like to explore the options. I can give you an assessment on your homes current value. I can also provide access to current listings and recent sales in your target communities.
P.S. We are really happy with our downsize move. We got rid of 2/3 of our cherished “stuff”. Had the money to do a nice make-over to our tastes. Great location where we can walk to everything we need. I highly recommend it.