|
Propositions
60/90/110
(Transfer of
Base Year Value)
And Propositions
85/193
1.
What are Propositions 60, 90 and
110?
Propositions 60, 90 and 110 are constitutional
amendments approved by the voters of California. They
provide for the transfer of a property’s base year value
from an existing residence to a replacement residence,
under certain conditions, for qualified persons over the
age of 55 or persons of any age who are severely and
permanently disabled.
2. What are the conditions that need to be met in
order to qualify for Propositions 60 and
90
exclusions?
a. Both properties must be located in the same
county, unless the county in which the replacement
residence is located has an ordinance that allows
intercounty base year value transfers.
b. As of the date of transfer of the original
property, the transferor (seller) or a spouse residing
with the transferor must be at least 55 years of age or
be severely or permanently disabled.
c. At the time of sale, the original property
must have been eligible for the Homeowners’ Exemption or
entitled to the Disabled Veterans’
Exemption.
d. Generally, the replacement dwelling must be of
equal or lesser value than the original property.
e. The replacement dwelling must have been
acquired or newly constructed within two years of
(before or after) the sale of the original property.
f. The owner must file an application within
three years following the purchase date or new
construction completion date of the replacement
property.
g. The original property must be subject to
reappraisal at its current fair market value; therefore,
transfers of the original property that are excluded
from reappraisal (e.g., most transfers between parents
and children) will not
qualify.
3. I think that the sale of my residence may
qualify for this benefit. How do I
apply?
You must file a claim with the assessor, who will
determine if the transaction qualifies. Claim forms
should be obtained from the assessor’s office in the
county where the replacement property is
located.
4. How do I determine if the replacement property
is of “equal or lesser value” than
the
original?
It depends upon the timing of the purchase or
completion of construction of the replacement property.
In general, “equal or lesser value” means the fair
market value of the replacement property does not exceed
one of the following:
100 percent of the market value of the original
property as of its date of sale, if the replacement
dwelling is purchased or newly constructed before an
original property is sold.
105 percent of the market value of the original
property as of its date of sale, if the replacement
dwelling is purchased or newly constructed within one
year after the sale of the original
property.
110 percent of the market value of the original
property as of its date of sale, if the replacement
dwelling is purchased or newly constructed within the
second year after the sale of the original
property.
5. If the market value of my replacement dwelling
slightly exceeds the “equal or lesser value” test
compared to the market value of my original property,
can I still receive partial
benefit?
No. Unless the replacement dwelling completely
satisfies the “equal or lesser value” test, no benefit
is available.
6. Can a taxpayer apply for and receive the
benefit of Propositions 60/90/110 numerous times during
the course of his/her
lifetime?
Generally, no. With one exception, only claimants
who have not previously been granted this benefit are
eligible.
7. I was previously granted this benefit but have
since become severely and permanently disabled. Can I
apply for and receive the benefit of Proposition
110?
Proposition 110 creates an exception from the
one-time-only limitation 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 base year value a second
time.
8.
I would like to transfer my base-year value to a
replacement property located in another county. Which counties
have adopted an ordinance to allow such
transfers?
As of January, 2001, nine counties adopted an
ordinance implementing the intercounty value transfer
provisions of Section 69.5 of the Revenue and Taxation
Code (Proposition 90). As of 2008, only 7 still have
such an ordinance*:
Alameda
San
Diego
Ventura
Orange
San Mateo
Los Angeles
Santa
Clara
*These
counties are participating as of 10/1/08 but the
participation changes often. Please contact your local
tax assessor’s office for the most current
information.
9.
What is the deadline for filing a
claim?
Generally, you must file your claim with the
county assessor within three years of the acquisition or
completion of construction of the replacement
property.
10. I still have questions about Propositions 60,
90 and 110. Where can I find more information?
If you still have questions about Propositions
60, 90 or 110, you may find the answers in Letter to
Assessors 87/71, 88/10, 91/33 and 97/02, or, you may
call the Technical Services Section at (916) 445-4982 or
your local county tax assessor’s
office.
Propositions 85/193 - Transfers Between
Parent and Child; Grandparent and Grandchild
11. Will the transfer of real property between a
parent and child or grandparent and grandchild cause a
reappraisal?
The purchase of transfer of a principal
residence, as well as the first $1 million of other real
property transferred between parents and children, is
not subject to reassessment provided a timely claim is
filed with the county
assessor.
This exclusion also applies to transfers between
grandparents and grandchildren, but only when both
qualifying parents are deceased. For more information
about these Propositions see Letter to Assessors No.
98/23 or contact the
Technical
Services Section at (916) 445-4982 or your local
county tax assessor’s office.
The
preceding summaries are provided for informational
purposes only. For a more comprehensive understanding of
the legal/tax consequences of the propositions and
current information, appropriate consultation is
recommended with an attorney and/or CPA for specific
advice.
top of page | 
