California Property Tax Relief
Understanding Proposition 60/90
Propositions 60 and 90 are constitutional amendments passed by California voters that provide property tax relief for individuals 55 and over. Prop 60 provides property tax relief by preventing property reassessment when a senior citizen sells their existing residence and purchases a replacement property equal to or less than the cost of their previous property. Prop 90 allows you to sell your property in a participating county, and purchase a replacement property in any of the 7 counties that participate in the program.
The 7 counties that currently participate in this program are: San Diego, Alameda, Orange, Los Angeles, San Mateo, Ventura and Santa Clara.
The seller or their spouse must be 55 or older on the date of sale of their original property. This is a one time benefit unless you become disabled.
To qualify for Proposition 60/90, the replacement property must meet the following requirements:
- It must be equal to or less than the sales price of your current residence if you purchase the replacement property before you sell your current residence
- The replacement property purchase price must not exceed 105% of the sales price of your current property if purchased within the first year after the sale of your current residence
- The replacement property purchase price must not exceed 110% of the sales price of your current property if purchased within the second year after the sale of your current residence
- You Must close on the replacement property within 2 years of the date of sale of your current property to qualify
The property tax transfer is not automatic. You have up to 3 years to file a application to transfer with your local assessors office. If you are looking to take advantage of Prop 90 be sure to contact the county assessors office to confirm this program is still in place. You can find more detailed information on Prop 60 & Prop 90 by visiting the California State Board of Equalization web site.