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Propositions 60 & 90 Bring Tax Relief To People Over 55!
Proposition 13 prohibits property tax increases until property ownership is changed. So what happens to that low tax base when you sell. Well, in most transaction you would pay 1.25% of the purchase price of your new home. OUCH! UNLESS Either spouse is over age 55 when the old home is sold. PROP 60 allows replacement of a primary residence with a new home of equal or lesser value within the same county and transfer of the assessed value from the old home to your new home. This is allowed only once. PROP 90 allows counties to accept transfers of Prop 13 values for moves from one county to another. The counties which accept Prop 90 are: Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura. (Some counties have dropped out over the years so check the county you are thinking of moving to and be sure they are still participating). Cool Huh. So if you sell your Los Angeles County Home (with its assessed value of $50,000) for $700,000 and buy a new home in San Diego County for $700,000 the assessed value of your San Diego home will still be $50,000. This information is not intended as legal advice, or guaranteed accurate, verified or complete. |