Los Altos Neighbor

If you are age 55 or older and considering a move, you may be eligible for substantial tax savings provided in Propositions 60 & 90.

These constitutional initiatives allow those 55 or older to continue to pay about the same in annual property taxes when they acquire a replacement property equal to or less than the value of their original property. (original property must be sold to receive benefits)

In order to be eligible for this tax relief you must meet certain requirements:

1. The replacement property must be your principal residence and must be eligible for the Homeowners’ Exemption or Disabled Veterans’ Exemption. (exemptions must be filed with the county)
2. The replacement property must be of equal or lesser “current market value” than the original property. The “equal or lesser” test is applied to the entire replacement residence, even if the owner of the original property acquires only a partial interest in the replacement residence. Owners of two qualifying original residences may not combine the values of those properties in order to qualify for a Proposition 60 base-year transfer to a replacement residence of greater value than the more valuable of the two original residences.
3. The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
4. Your original property must have been eligible for the Homeowners’ or Disabled Veterans’ Exemption.
5. You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.

 There are several counties that currently participate in Proposition 90 however, it is subject to change and important to contact the county regarding eligibility prior to your purchase.

Los Angeles

Ventura

Alameda

Orange

San Diego

Santa Clara

San Mateo

You can contact the Los Angeles County Assessor’s office at 1(213) 974-3211 for more information.