What are Propositions 60 & 90?
They are constitutional initiatives passed by California voters. They provide property tax relief by preventing reassessment when a senior citizen sells his/her existing residence and purchases or constructs a replacement residence with a value equal to or less than the original.
The seller of the original residence, or spouse who resides with the seller, must be at least 55 years of age at the time of the sale.
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, or after November 9, 1998 if it was located in any other California County. Claims must be filed within three years following the purchase of the replacement residence.
- The replacement property must be the owner’s principal residence and eligible for the Homeowners’ Exemption. The original property, at the time of its sale, must have been eligible for the Homeowners’ Exemption, or entitled to the Disabled Veterans’ Exemption.
- The seller of the original residence, or a spouse residing with the seller, must be at least 55 years of age, as of the date that the original property is transferred.
- The replacement property must be of equal or lesser “current market value” than the original.
- If the replacement is purchased in Los Angeles County, the original can be located in Los Angeles County or
any other California County. Other California counties have passed similar Proposition 90 Local Option Ordinances. If the original residence is in Los Angeles County, and you want to relocate in another county, contact that county for Proposition 90 eligibility.
- The replacement property must be purchased or newly constructed within two years (before or after) the sale of the original property.
- The owner must file an application within three years following the purchase date or new construction completion date of there placement property.
- This is a one-time only filing. Proposition 60/90 relief cannot be granted if the claimant, or spouse, was granted relief in the past.
- Proposition 60/90 relief includes, but is not limited to: single family residences, condominiums, units in planned unit developments, cooperative housing corporation units or lots, community property apartment units, mobile homes subject to local real property tax, and owners’ living premises which are a portion of a larger structure.
- In most instances, if more than one owner of an original property is eligible for Proposition 60/90, they must choose among themselves which one will use the benefits.
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