As you will read on page 2 of the document at the end of this post (generated by the CA State Board of Equalization and sent to all County Assessors in 2006):
â€œThe replacement dwelling must be of equal or lesser value as compared to the original propertyâ€.
You may just be mulling over a move at the present time; however, as you become more serious about moving I would highly advise consulting a tax/financial/estate planner before making your final decision!
There are actually THREE CA Propositions that allow transfer of tax base. In fact, there are special circumstances that not only allow some to transfer tax base TWICE, the replacement property may be 110% of the sale price (see page 2 of the linked document below).
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. As of 2/15/10 (confirm current status before taking any action) only the following eight counties in California have an ordinance enabling intercounty base year value transfers:
Alameda, Los Angeles, San Diego, Santa Clara, El Dorado, Orange, San Mateo, Ventura
Now, generally, a person can use Prop 60 or 90 only once. However, PROP 110 provides the sole exception where a person first received relief for age and then subsequently the claimant or claimant's spouse became severely and permanently disabled and has 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."
In addition, you can purchase up to 110% of the of the full cash value of the original property; BUT, there are timeline hurdles, as follows:
1) 100% 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,
2) 105% 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
3) 110% 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.
You can read much more about the three propositions here: http://docs.Steven-Anthony.com/Prop60-90-110.pdf
If you are over 55yrs old, the answer is yes, you can have a one-time transfer of your tax basis.
Check the County Tax Assessor's web page to get e details.
Alain Pinel Realtors
Proposition 90 will allow you County choices other than Santa Clara County:
You have been given some great answers and links below. Prop 60, 90 and 110 should help you come up with your answer before you consult you tax advisor. If you are 55 and staying within the county it would be yes. You do want to check if you are moving out if the county if that county cooperates with Santa Clara County.
Please call If you need help with your home search.
Lillie Missbrenner, Realtor
Short Sale Specialist, HAFA and REO certified
Better Homes and Garden Previosly Prudential California Realty
The answers to all your questions are here at the Board of Equalization website:
Read it carefully. You will get answers to many scenarios you might not have thought of.
Yes you should be able to iff, you are over 55 years old and have not done it before.
Also it is very important that you are in the same county or a select few, allowed in the State.
Go to the site referenced below:
If there are any questions do call.
All the best to you.
It is best for you to consult with a professional tax advisor for a thorough understanding of the implications of transaferring your tax base from one home to another. There can be many variables.
Alain Pinel Realtors
Intero Real Estate
I'm not sure of it:
If you have been under Prop 13, and you sell the house, you lose that Prop 13 rate forever.
You should check your Assessment Schedule; I believe it will specify Prop 13 if you were benefiting.
At this point, you prpbably have to be pretty old to remember Prop 13.
Good luck and may God bless
Thank you for your post. Answer, Yes you can. The reason is because the current home tax base is determined based on a lower (original) purchase price, not the current sales price. The new home will cost less than the sales price of the current home, but more than the purchase price of the original home. As Linda pointed out if you are over 55 years of age one time transfer. See link below:
Denise A. Szyszlo Realtor
Office:: (408) 369-2000 x319
Mobile: (408) 768-7097
Fax: (888) 334-0888
419 E. Hamilton Ave, Campbell, CA 95008
Since Realtors are not licensed to give tax advice I won't offer any more than to encourage you to gain guidance from a tax professional.
My first thought was If you buy a home with a lower tax base it would make sense to let your other tax base go. You must have a tax implication that benefits you ... see a tax person! :)
If I can be of any further assistance you are welcome to contact me.