Tax Base Transfer
Proposition 60 pertains to a regulation passed in California in 1986. It pertains to someone over the age of 55 who sells a house that has a comparatively low tax assessment to the current fair market value. This is due to the restrictions placed on property tax increases by Prop 13.
The homeowner would like to sell and buy another home, and they would like to keep their current low assessment. This law allows them to sell and buy another home for as much or less than their sales price. They could then keep the low tax assessment on their next home. It must be done within two years from the sale; the purchase can be first or second; and if they buy after the sale of their current home, there can be small increases from the original sales price.
Prop 60 allows this transfer only in the same county.
Why is this becoming more important? Because with prices rising faster than taxes again, many seniors would like to sell and down size without tax increases.
I did some research on this recently for a client. She was told, correctly, this is a one time event. However, if there is a buyer with a disability, there may be a second time and it requires a different form. This was a game changer the them.
Thank you very much for the informative comment. It is appreciated.
I understood that this expired 12/31/2018 and then the new proposition did not pass that would have allowed you to purchase up and still have some benefit from the old tax basis but it was more complicated calculation for voters to understand.
I was not aware of this so thank you for the alert. Our office will check it out and send any change out in a future post.
Still have 2 active licenses at 82. Lawyer, Broker. CPA license on ice for 43 years.
Long time since Forrest Olson on victory.