Michele's Blog

Propositions 60 & 90 provide property tax relief by preventing property reassessment when a person, age 55 or older, sells his/her existing residence and purchases or constructs a replacement residence of equal or lesser value than the original property.

How Do These Propositions Work?

When a person, age 55 or older, purchases or constructs a new residence, it is not reassessed if he/she qualifies. The Assessor transfers the factored base value of the original property located in the same County. Later, Proposition 90 enabled this to be modified by local ordinance. The homeowner is still eligible if moving to a County that has adopted a Proposition 90 ordinance. The meaning of equal or lesser value depends on when you purchase the replacement property. In general, equal or lesser value means:

100% or less of the market value of the original property if a replacement property were purchased or newly constructed before the sale of the original property, or

105% or less of the market value of the original property if a replacement property were purchased or newly constructed within the first year after the

sale of the original property, or

110% or less of the market value of the original property if a replacement property were purchased or newly constructed within the second year after the sale of the original property.

Counties that currently accept proposition 90:

Alameda

Santa Clara

San Diego

Los Angeles

Orange

San Mateo

Ventura

El Dorado