How to buy a new home and continue paying your current low property taxes.

Do you know that California Prop. 60 & 90 gives homeowners over the age of 55 a one-time opportunity to avoid increased property taxes when they sell their home and purchase an equally priced or less expensive home? Perhaps you have owned your home for quite a while and are paying low property taxes. You might be able to continue paying this low amount.

Some Key Rules

  • The seller of the home, or the spouse residing with the seller, must be at least 55 or older when the property is transferred.
  • The replacement home must be of equal or lesser “current market value” than the original.
  • The value of the original home tax base cannot be transferred until the original home is sold.
  • The replacement home must be purchased within 2 years of the sale of your original home.
  • You can relocate from a county that does not participate to a county that does, and receive this property tax exemption. 
  • Counties that participate are Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura.
  • THIS IS A ONE TIME OPPORTUNITY.

Example

Using Prop. 60 & 90, you can sell your $600,000 Alameda County home (taxed value $80,000) and move to a new $450,000 home in the same or other participating county; the new home taxed value will be $80,000. This would save you over 80% in property taxes! (This example is based on a straight 1% County property tax assessment and does not include any extra city or county property tax assessments such as Mello-Roos and Special Assessments. It also does not include any fees involved with the sale of your property or the purchase of a new property.)

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