Sunday, August 7, 2011

How to Protect and Transfer Your Property Tax Basis for Residence at Orange County ~ CA Proposition 60


A friend asked yesterday whether he could buy a house in Orange County first and later sell his prior house in Orange County while taking advantage of California Proposition 60 on transfer of property tax basis.

Answer is "YES" if you follow all conditions for qualification and tax relief as set forth by the Office of Orange County Assessor.

California Proposition 60 allows transfer of an existing Proposition 13 base year value from former residence to replacement residence, if certain procedures are met (once in a lifetime benefit for homeowners who are 55 years of age or more). PEOPLE 55 YEARS OF AGE OR MORE 

Proposition 60 was a constitutional amendment approved by the voters of California in 1986.  This is codified in Section 69.5 of the CA Revenue & Taxation Code, and allows the transfer of an existing Proposition 13 base year value from a former residence to a replacement residence, if certain conditions are met.  This benefit is open to homeowners who are at least 55 years old and are able to meet all qualifying conditions.

The following conditions must all be met for qualification and property tax relief to be granted under California Prop. 60:

a)  Both the original property (former residence) and its replacement must be located in the same county. If the replacement property is located in a different county from the original, see CA Proposition 90.

b)  As of the date of transfer of the original property, the seller or a spouse living with the seller must be at least 55 years old.

c)  The original property must have been eligible for the Homeowners' Exemption or entitled to the Disabled Veterans' Exemption.

d)  The replacement dwelling must be of equal or lesser value than the original property (There are exceptions when you buy a replacement home within one or two years after sale of prior residence).

e)  The replacement dwelling must have been purchased or newly constructed on or after 11/06/86.

f)  Without exception, the replacement dwelling must be purchased or newly constructed within two years (before or after) of the sale of the original property.

g)  The original property must be subject to reappraisal at its current fair market value as the result of its transfer, in accordance with Sections 110.1 or 5803 of the Revenue and Taxation Code.

h)  Without exception, a claim for relief must be filed within three years of the date a replacement dwelling is purchased or new construction of a replacement dwelling is completed.

For more detailed information and response to questions, see Office of Orange County CA Assessor for residential property owners 55 years of age or older.


Source of information is Office of Orange County CA Assessor.  If you want to buy a different home at Orange County and transfer your property tax basis, always work with an experienced REALTOR who is familiar with California Proposition 60 about protection and transfer of your property tax basis. 

Harrison K. Long - solutions for real estate and business - REALTOR® and broker associate, GRI - Coldwell Banker Residential Brokerage - 949-854-7747 (phone) - - CA DRE 01410855 - SFR short sale and foreclosure resource certified by the National Association of REALTORs® 

Posted via email from Explore OC Homes


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