Propositions 60 & 90
What Are Propositions 60 and 90?
These propositions provide a one-time property tax benefit by preventing reassessment when a senior citizen (age 55 years or older) sells his/her existing residence and purchases or constructs a replacement residence worth the same or less than the original property. This proposition either applies to the principal claimant of the original residence or a spouse who resides with the seller who must also be 55 years of age at the time of the sale.
Why Were They Enacted?
These propositions were set forth to encourage senior citizens to “move down” into a smaller residence and not be penalized by having to pay higher property taxes. When a senior citizen acquires a replacement worth equal or less than the original, he/she will continue to pay approximately the same amount of annual property taxes as before.
How Do These Propositions Work?
When the homeowner purchases or constructs a new residence, it will not be reassessed if he/she qualifies. The Assessor transfers the factored base value of the original residence to the replacement residence. Prop. 60 requires that both the original and replacement homes be within the same county. Prop. 90 was later enacted to broaden the effects of Prop 60. Prop 90 enables homeowners to transfer the principal residence to include other counties, as long as that county has implemented the initiatives. (A listing of counties participating is on the back)
When are these Propositions Effective?
The replacement residence must have been purchased or constructed on or after November 5, 1986 if the original was located in Los Angeles County. If the original was located in any other California county, as long as that county is participating, the replacement residence must have been purchased or constructed on or after November 9, 1988. Claims must be filed two years following the purchase or construction of the replacement residence. When claiming the exemption the claimant must own and occupy the replacement property. Also, claimant must file for a Homeowner’s Exemption on the replacement property, this is not granted automatically.
How To Claim Tax Relief
The forms are available at the Assessor’s public counters, the Hall of Administration, and regional offices. For additional information, call your local assessor’s office.
Severely and Permanently Disabled Resident
WHAT IS PROPOSITION 110?
Proposition 110 is a constitutional initiative passed by California voters. It provides property tax relief for severely and permanently disabled persons by allowing the transfer of the base-year value of their existing home to a newly purchased or constructed home within the State of California. It also provides property tax relief by excluding from reassessment the construction, installation or modification completed in order to make a home more accessible to a severely disabled person, whether the base-year value is transferred or not. The construction of an entirely new addition, such as a bedroom or bath, which duplicates existing facilities in the original or replacement dwelling that are not available to the disabled person because of his or her disability, may also be excluded from reassessment.
WHY WAS IT ENACTED?
It enables severely and permanently disabled persons to move to a replacement home or modify their original home to satisfy disability related requirements and/or alleviate the financial burdens caused by the disability.
HOW DOES THE PROPOSITION WORK?
When a severely and permanently disabled person purchases or constructs a new residence it is not reassessed. The factored base-year value of the original residence is transferred to the replacement residence. If construction, installation or modification is done to specifically satisfy disability related requirements, the construction is not assessed.
The Revenue and Taxation Code defines "a severely and permanently disabled person" as any person who has a physical disability or impairment which results in a functional limitation as to employment, or substantially limits one or more major life activities of that person, and which has been diagnosed as permanently affecting the person's ability to function.
WHEN IS THIS PROPOSITION EFFECTIVE?
The replacement residence must have been purchased or the construction of additional improvements completed on or after June 6, 1990.
WHERE ARE CLAIM FORMS AVAILABLE?
Claims forms are available at the Assessor's Public Service Counter, in Room 225 of the Kenneth Hahn Hall of Administration and at Regional Offices.