PROP 60 AND WHY IT IS BECOMING MORE IMPORTANT
Proposition 60 pertains to a regulation passed in California in 1986. It pertains to someone over the age of 55 who sells a house that has a tax assessment that is very low in comparison to the current fair market value. This is due to the restrictions placed on property tax increases by Prop 13.
The homeowner would like to sell and buy another home, but they would like to keep their current low assessment. This law allows them to sell and buy another home for as much or less than their sales price. They would then keep the low tax assessment on their next home. It must be done within two years from the sale; the purchase can be first or second; and if they buy after the sale of their current home, they can be small increases from the original sales price.
Prop 60 allows this transfer only in the same county.
Why is this becoming more important? Because with prices rising faster than taxes again, many seniors would like to sell and down size without tax increases.
PROP 60 AND THEN PROP 90
Yesterday I discussed Prop 60 where a homeowner could sell a home and under certain conditions keep their low tax assessment in the same county. This was passed in 1986.
As always California taxpayers were not satisfied, they wanted to be able to sell and move to another county with their low assessment. In 1988 the State Legislature passed Prop 90. This allowed counties to vote and approve a homeowner to bring their assessment from another county.
Without going to Google, I believe that there are 40 counties in California. At this moment, you can move to 9 with your treasured low assessment. The counties are Alameda, El Dorado, Los Angeles, Orange, Riverside, Santa Clara, San Diego, San Mateo, and Ventura. Riverside just jointed lately and that is a great change for people who want to move to the desert.
Why do so many counties not allow this transfer? I have no idea. I guess they are not too fond of new downsizers. Four counties had approved before and then unapproved. So seniors, you can now pack up and get away.
Credit to Duane Gomer for providing this tidbit.
Realtor Intero Real Estate
Farah Homes Construction