California Prop 90 Update!
California’s Prop 90 allows a home owner in California to sell their home, buy a replacement property in a participating county, and move a lower prop 13 based tax value from their old home to the new county for the purpose of home tax assessment. It allows the adjusted base year value of the original (sold) property to be transferred to the newly purchased or constructed home if eligibility requirements are met.There are some restrictions like the claimant or claimant’s spouse must be at least 55 years of age. The replacement property must be your principal residence and must be eligible for the homeowners’ exemption.
Participating counties are Alameda, Orange, San Mateo, Ventura, Los Angeles, San Diego, Santa Clara and now, El Dorado County.
There are also purchase price restrictions on the new replacement property.
The purchase price of the new home can be:
100 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed prior to the date of sale of the original property,
105 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the first year following the date of the sale of the original property, or
110 percent of the full cash value of the original property as of the date of sale, if the replacement dwelling is purchased or newly constructed within the second year following the date of the sale of the original property.
So if you have been putting off buying that retirement home in the gold country because you weren’t sure you could afford the property taxes… now is the time.
Mark Hasha
www.markhasha.com
Mark is a Seniors Real Estate Specialist helping buyers and sellers in San Mateo County.
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4 Responses to “California Prop 90 Update!”
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Mark,
Thanks for the reminder. It benefits the homeowner,counties, and homebuyers buying the home of the sellers using the Prop 90 formula.
We can help sellers here and then assist them in locating a property in SF, SM counties or any of the other participating counties through our Prudential refferal network!
Thanks again, Mark!
Brian
That is really important to know. Prudential California Realty in San Bruno in is the center of a lot of that activity. We have many clients moving into San Mateo County, especially from San Francisco who can take advantage of this great tax break. We also have a lot of clients moving to the East Bay or the Sierra foothills and Lake Tahoe who will also benefit from it. Great information Mark, John Gieseker
Mark,
Great info. this list changes annually.
I would suggest anyone considering this option, to do it now. With all of the counties spending more than they take in I would assume this will be terminated in the coming years.
Lee
A great benefit to homeowners – the ability to move and take their current Propostion 13 taxes with them. I have helped a number of clients moving from San Francisco to San Mateo County and transferring their taxes.
Larry Franzella