Transfer of Base Year Value for Persons Age 55 and Over
The Propositions allow a person who is over age 55 to sell his or her principal place of residence and transfer its base year value to a replacement dwelling of equal or lesser value that is purchased or newly constructed within two years of the sale. These propositions are implemented by Revenue and Taxation Code section 69.5.
Proposition 60 allows for the transfers of a base year value within the same county (intracounty). Proposition 90 allows for the transfers of a base year value from one county to another county in California (intercounty) if the county has authorized such a transfer by an ordinance.
As of today, the counties that fall with the Proposition 90 inter county transfer are the following: Los Angeles, Tuolumne, Alameda, San Diego, Orange, San Mateo, Santa Clara, El Dorado, and Ventura Counties. These are subject to change so make sure to check with your assessor before buying or selling a home.
You or your spouse residing with you, must be at least 55 years of age when the original property is sold. This is a one time benefit. The new home must have been purchased within two years before or after the sale of the original, low-tax based property. If the new home was purchased within one year of selling the former home, the new home must be 105%, or less, than the value of the former home. If the new home was purchased between one and two years after selling the former home, the new home must be less than 110% of the former home’s sale price. The original property must be subject to reappraisal at its current fair market value at the time of sale.
Be aware of these deadlines when shopping for your dream home in retirement.