Proposition 60 & 90 (Transfer of assessed value of primary residence)

Los Angeles Proposition 60 & 90 guide

Proposition 60 & 90 allows property owners to transfer their current property tax basis to a new primary residence (of equal or lesser value) when they move. This means that if you decide to move after retirement, that your annual property taxes won’t skyrocket.

EXAMPLE:

Mr and Mrs Smith have lived in their home for 25 years and are over the age of 55. The current market value of their home is $2,000,000. Mr and Mrs Smith assessed value is $450,000 and they pay $5,600 a year in annual property tax. The house has many stairs, and is very large at 3,500sqft with costly annual maintenance. The Smiths want to downsize and move to a more convenient location.

The Smith’s sell their home for $2,000,000 and purchase a new full service condominium unit for $1,500,000. Instead of their taxes jumping from $5,600 a year to $18,750(!) they may transfer their assessed value using Proposition 60 and continue paying $5,600 a year.

 

REQUIREMENTS to be eligible for Proposition 60 & 90

 

-Only for Primary Residence

-Replacement property must be of equal or lesser value

-Replacement property must be purchased within two years (before or after) of the sale of the original property.

-One owner must be at least 55 years of age.

Proposition 60 & 90 Form
You may only use proposition 60 or 90 once during your lifetime.

Proposition 60 & 90 have the same rules, the only difference between the two is that proposition 60 is for transfers within the same county and Proposition 90 is for transfers to another county in California. Since counties policies change, I recommend contacting the county to which you are planning to move to verify that it is eligible for Proposition 90 first before you move.

Visit the Los Angeles Assessor Office for the most up to date forms:

http://assessor.lacounty.gov/extranet/list/forms.aspx

or telephone them 213-893-1239 with Proposition 60 & 90 questions.

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