SENIOR SERVICES FAQs about Prop 19, Prop 60 and Prop 90
What Are Propositions 19, 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.
To bring things up-to-date, Prop 19 was passed in November 2020 and will take affect in April 2021, but until the specific regulations have been drafted to put this law into effect, we really don’t know exactly what to expect. Of course, during this process, they will repeal the provisions put in place several years ago with Prop 60 and Prop 90.
The positive aspect of the new proposition is that it allows one to transfer their tax base from their current home, that they are selling, to a replacement home, anywhere in the state. The older law really allowed that move within a county or to 6 other counties.
Why Were They Enacted? To allow a senior citizen to sell their current property, which probably has increased in value over the years, to move to a new home without being overwhelmed by the property taxes on the replacement property.
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 required that the replacement and the original be located in the same county. Later, Proposition 90 was passed which allows each county to set a local ordinance to allow the seller to move to another county and to receive the benefits of Proposition 60. Now with Prop 19, that can be done anywhere in the state.
Who Qualifies? The seller of the original residence, or spouse who resides with the seller, must be at least 55 years of age at the time of the sale. These are also provisions for people affected by recent natural disasters or people with qualified disabilities.
When is Proposition 19 Effective? April 2021
Where Are Claim Forms Available? They are distributed at Assessor’s public counters.
I think that the sale of my residence may qualify for this benefit. How may I apply? You must file a claim with the Assessor who will then determine if the transaction qualifies. Claim forms are available at the Assessor’s public counter downtown and at the District Offices.
Is it true that only one claimant need be at least age 55 as of the date of the sale of an original property in order to qualify? Yes. The principal claimant/ occupant or his/her spouse/occupant must be age 55. They can do this a maximum of 3 times, whereas the old law only allowed the homeowner to do it once in their lifetime.
If I get Proposition 19 benefits will I still have to file for a Homeowners’ Exemption on the replacement property? Yes. You must file for a Homeowners’ Exemption on the replacement property. It is not granted automatically.
What is the deadline for filing? Within three years of purchasing or completing new construction of the replacement property.
