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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 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.
Counties Involved in Proposition 90
A county’s participation in Proposition 90
is not mandatory and is subject to change. Therefore, you should
always contact that county for Proposition 90 eligibility before
you purchase your replacement property. The following is a list
of the counties currently participating in Proposition 90 as of
January 10, 2001: |
