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I bought my house under Prop 13, live in it since mid-60's. If I sell it do I get to take my low property tax with me ($ amount) or just the

Asked by Voices Member, Thu Aug 11, 2011

tax rate

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Steve Ornellas’ answer
Claire:

Yes, you can transfer your current tax base using Props 60, 90 & 110 (Prop 13 is a bit different, it simply caps any value-based property tax increase to no more than 2% of the prior year value).

Prop 60 provides for the transfer of a base year value from a principal residence to a replacement dwelling within the same county by a homeowner age 55 and over.

Prop 90 authorizes county boards of supervisors to adopt ordinances allowing base year value transfers between different counties, which at the present moment only the following Counties are participating (confirm current status before taking any action): Alameda, Orange, San Mateo, Ventura, Los Angeles, San Diego, Santa Clara.

Generally, a person can use Prop 60 or 90 only once. The sole exception is where a person first received relief for age and then subsequently became severely and permanently disabled and had to move because of the disability.

Prop 110's Section 74.3(b) extends Prop 60 & 90 to "... any person who has a physical disability or impairment, whether from birth or by reason of accident or disease, that results in a functional limitation as to employment or substantially limits one or more major life activities of that person, and that has been diagnosed as permanently affecting the person's ability to function, including, but not limited to, any disability or impairment that affects sight, speech, hearing, or the use of any limbs."

You can read more details here: http://docs.Steven-Anthony.com/Prop60-90-110.pdf

Consult a CPA/Tax Advisor before taking any action.

Best, Steve
2 votes Thank Flag Link Thu Aug 11, 2011
El Dorado County (Sierra Nevada foothills in CA's infamous gold country) participates in Prop 90
0 votes Thank Flag Link Mon Mar 4, 2013
There are 5 counties that still allow you to move your tax basis between them. San Francisco is not one of them but you can move it within San Francisco. San Mateo, Santa Clara, Alameda, Los Angeles and Orange Counties are the last to allow the transfer and who know how much longer Prop 60/90 will hold up with the dire financial straights all of the counties are finding themselves in.

If you're going to do, do it this year so you can take advantage of this wonderful program. Once you sell you home and buy a new one, you call the tax assessor and ask for the forms you need and that's about it. It is a one time only option.
0 votes Thank Flag Link Thu Aug 11, 2011
Thank you Cece,

I was not aware that there were some Counties within the State that still allowed you to transfer property tax rates from County to County. That is good to know. Thou, that is why I always make it a point to recommend consulting with a Licensed CPA when considering the sale or purchase of a home. Good luck to you!

Matt
0 votes Thank Flag Link Thu Aug 11, 2011
My clients have done that in San Francisco and San Mateo counties (and between both counties). The new property needs to be of equal or lesser value and it is a one time allowance.
0 votes Thank Flag Link Thu Aug 11, 2011
I want to challenge Matt on that last post. You CAN transfer your tax basis from San Francisc over into some other counties inside California. Which ones change up all the time though so you need to do your research.

Alas, SF is not one of the counties that will allow a seller to transfer his low basis into town from an outside county. I guess being one of the most beautiful cities in the world allows them to be a bit more selfish. Plenty of Baby Boomers from the burbs downsize into homes here anyway.
0 votes Thank Flag Link Thu Aug 11, 2011
Hi Claire,
Yes, if you qualify (over 55 years old), you can take your property tax with you if you plan to purchase your next home in San Francisco. Here's some more info and check the link below. If I can help further, let me know.
Cheers,
Danielle

"Propositions 60 and 90 are constitutional amendments passed by California voters that provides property tax relief for persons aged 55 and over. Implemented by section 69.5 of the Revenue and Taxation Code*, it allows these persons, under certain conditions, to transfer a property's factored base year value from an existing residence to a replacement residence.

Typically the property tax of a newly purchased or constructed residence is based on its current market value upon change of ownership. However, the provisions of Propositions 60 and 90 may result in substantial tax savings since 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."
0 votes Thank Flag Link Thu Aug 11, 2011
Yes, depending on your age, you my use props 60 and 90 to transfer your current tax basis to your new primary residence and save thousands on property taxes every year. There are some restrictions and requirements which your tax accountant can handle for you. Here is a link to more information:

http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm

Oggi Kashi
Paragon Real Estate Group
CA DRE 01844627
Web Reference: http://www.oggikashi.com/
0 votes Thank Flag Link Thu Aug 11, 2011
It may be possible. Below is a link that explains Propositions 60 and 90. There are many factors that will take place for you to qualify depending on how old you are and if your county and the county you move to cooperates with Propositions 60 and 90 and their guidelines.
Read up on them both because you you qualify the benefits would be huge. Good Luck.
0 votes Thank Flag Link Thu Aug 11, 2011
Hi Claire-

You'll want to talk to your tax accountant and the SF Assessor's office before making any decisions but I have experience representing an elderly client who sold his property in SF and moved into a smaller place and was able to take his his assessed value (approxiamte) with him to his new home. To my knowledge it's all about assessed value and has nothingt o do with income tax rates, however, there are age restrictions. It took the City a long time to effect the change but it was finally done.

If you have any questions or would like to discuss it further, please don't hesitate to call or email.

Many thanks!

Rich Bennett

415.305.4911 cell

DRE#01358540
0 votes Thank Flag Link Thu Aug 11, 2011
Hi Claire,

For those home owners that are 55 years of age or older who sell their home and purchase a new home can take their current property tax rate with them as long as their new home is in the same County. If you purchase a home in another County you will lose your property tax rate. I recommend that you speak with your Licensed Certified Professional Accountant prior to making your final decision to sell and buy a new home.

Warmest Regards,

Matt
0 votes Thank Flag Link Thu Aug 11, 2011
I'm darn near positive that the favorable tax rate is for THAT property and YOU:
If either changes, the rate goes back to normal.
Howard Jarvis intended it that way.
0 votes Thank Flag Link Thu Aug 11, 2011
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