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What are propositions 60 and 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
worth the same or less than the original.
Why were they enacted?
They
encourage a person, age 55 or older to "move down" to a smaller residence. When
a senior citizen acquires a replacement property worth less than the original
property, he/she will continue to pay approximately the same amount of annual
property taxes as before.
How do these propositions work?
When
the senior citizen purchases or constructs a new residence, it is not
reassessed, if he/she qualifies. The Assessor transfers the factored base value
of the original residence to the replacement residence. Proposition 60
originally required that the replacement and the original be located in the
same county. Later, Proposition 90 enabled this to be modified by local
ordinance. Los Angeles County enacted an ordinance to provide that when the
replacement is located in Los Angeles County, the original property may be
located in any other California county.
Who qualifies?
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. The replacement residence must have been purchased or
constructed on or after November 9, 1988 if the original was located in any
other California county. Claims must be filed within three years following the
purchase of the replacement residence.
Where are claims forms available?
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. They are distributed
at Assessor's public counters, in Room 225 of the Kenneth Hahn Hall of
Administration, and in regional offices. If you need additional information,
call (213) 893-1239.
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