Nevada County Real Estate Market Snapshot - CA Property Taxes Proposition 60
Created: 2/20/2010
February 8, 2010 – Propositions 60 and 90 are constitutional amendments passed by California voters that provide property tax relief for persons aged 55 and over. As specified by section 69.5 of the Revenue and Taxation Code, Props 60/90 allow, under certain conditions, the transfer of a Prop 13 factored base year value from an existing residence to a replacement residence.
Prop 60 allows transfers of valuation within the same county and Prop 90 allows transfers between different counties where transfers have been authorized by individual counties. Nevada County has not authorized Prop 90 transfers. Proposition 110, also included in section 69.5, applies the same conditions to valuation transfers for “severely and permanently disabled persons”.
In order to be eligible, the following requirements must be met:
- The homeowner or spouse residing with the homeowner must have been at least 55 years of age when the original property was sold.
- Both the sold and the acquired property must be the principal residence when owned and must be eligible for the homeowners’ exemption.
- The replacement property must be of “equal or lesser current market value” than the original property.
- The purchase or completion of the replacement property must take place within 2 years of the sale of the original property.
- This is a “one-time” opportunity, unless a person receives the benefit due to age and subsequently becomes disabled and is forced to move because of the disability. The reverse (eligible by disability followed by age) does not apply.
What this means is that in the situation where a property has been held by the same owner for a substantial length of time, and the market value has appreciated by a large amount, property tax relief is available for homeowners over 55 years of age.
If the market value of the original property is greater than the Prop 13 factored base year value, the lower valuation can be transferred to the replacement property of lesser or equal market value, rather than the replacement property being re-assessed at the purchase price. This will result in a lower property tax bill going forward.
For more information, the property owner is encouraged to contact either the CA State Board of Equalization at www.boe.ca.gov/proptaxes, or the Nevada County Assessor’s office at www.mynevadacounty.com/assessor/.
Paul Sieving is a Realtor® with CENTURY 21 Gold Dust Realty, has been Chair of the MLS Committee, a Director of NCAOR and Board Chair of the Grass Valley Chamber of Commerce, while serving our community as a real estate professional for over 10 years. Comments, questions and thoughts are welcome at Paul@PaulSieving.com or (530) 274-0906.
