SENIOR SERVICES Propositions of Importance to Seniors
Over the past several years, several propositions have been passed by the people of the State of California that provide special benefits to our senior citizens. Most have heard about Proposition 13, the property tax relief act which kept property tax increases from making our senior citizens homeless as their property taxes out-stripped their fixed income. Most of you have not heard about Proposition 8 from just a few months after Proposition 13 that dealt with the decline in the value of your property. Property may generally go up each year but every 7-10 years we have a correction and values drop. Proposition 8 allows you to ask for a reassessment to lower your taxes during those times. Learn more here.
Many seniors have heard about Proposition 60 and Proposition 90 that allow senior citizens to downsize and keep the benefit of their lower property tax basis. Unfortunately most don’t remember Proposition 110 or Proposition 58 or Proposition 193.
Proposition 19: The provisions found in Prop 60 and Prop 90 are being replaced with the provisions of Prop 19 which was passed in November 2020. The comments about Prop 60 and 90 have been removed from this page.
Proposition 110:
Proposition 110 created an exception from the one-time-only limitation found under the provisions of Proposition 60 or Proposition 90, for any claimant who becomes severely and permanently disabled after having previously received a base year value transfer as a claimant over the age of 55 years. Thus, if a person over the age of 55 years transferred the base year value from an original property to a replacement dwelling and subsequently becomes disabled, then that person may now transfer his or her base year value a second time.
Proposition 58 & 193
These propositions allow the transfers of real property between Parent and Child or Grandparent and Grandchild without re-assessment. You do need to know how you and your family may benefit from the tax benefits provided by these propositions. Of course, as with all recommendations that have tax consequences, such as making use of the provisions of Proposition 58 or 193, we do advise our clients to make sure to obtain tax advise from their personal advisors. Tax advise is also important to the heirs who will be involved with you on these activities.
