Can you Transfer your current CA Property Tax Base to Your New Home?
The answer is….maybe. CA propositions 60 and 90 have provisions to transfer your current property tax base if you meet certain requirements.
First, let’s identify the difference between the two Propositions.
Prop 60 Allows transfers of base year values within the same county.
Prop 90 allows transfers from one county to another in CA, IF the two counties are participating in the tax base transfer. Currently, there are 11 counties who are participating in the intercounty transfer
Alameda El Dorado Los Angeles Orange Riverside
San Bernardino San Diego San Mateo Santa Clara
1.) You or your spouse living with you must be at least 55 years old when the original property was sold.
2.) The replacement property must be your principal residence.
3.) The replacement property must be of equal or lesser value (current market value), of the original property.
4.) The replacement property must be purchased or built within 2 years, (before of after) of the sale of the original property.
5.) To receive retroactive relief from the date of transfer, you must file your claim within 3 years following the purchase date of the replacement property.
6.) Your original property must have been eligible for the homeowners or veterans exemption either at the time of sale of within 2 years of the purchase or construction of the replacement property.
What does equal or lesser value of a replacement property mean?
The market value of the replacement property as of the date of purchase must be equal or less than the market value of the original property on the date of sale. 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 was purchased or newly constructed within the second year after the sale of the original property.
In determining whether the “equal or lesser value” test is met, it is important to understand that the market value of a property is not necessarily the same as the sale or purchase price. The assessor will determine the market value of each property.
*Consult with your tax advisor and See current CA rules and guidelines
There is no better time than now to take advantage of this unique opportunity, Contact Cathi and Ben Walter Today To See Homes Available in the Desert Area That Will Meet Your Requirements. 760.218.5752 or Email Cathi(at)CathiWalter(dotted)com