Property Tax Portability
Propositions 60, 90, and 110 each allow a homeowner to transfer their base taxable value to a replacement property for their primary residence, resulting in much more affordable payments.
Proposition 60 can be used to transfer a homeowner’s tax base within the same county. It is specifically for seniors. The requirements for eligibility are as follows:
- The property to be sold and replacement property must be in the same county.
- Proposition 60 is for a change in principal residence – therefore, the property sold and the replacement property must both be owner-occupied.
- One person on title must be age 55 or older
- The benefit can be used only once. A single owner or a married couple, joint tenantship, etc. can only use the benefit one time; not once per spouse.
- The replacement property must be of equal or
lesser value to the property sold, within the following parameters:
- If the replacement property is purchased before the sale of the original property, the replacement property can cost no more than 100% of the sale price of the original home.
- If the replacement home is acquired within one year after the sale of the original property, it’s price can be no more than 105% of the initial sale value.
- If the replacement home is acquired between one and two years following the sale of the original property, it’s price can be no more than 110% of the original sale price.
- The transactions must be within two years of one another. If this limit is exceeded, the benefit is lost.
- If the value of the replacement property is too high, the benefit cannot be partially applied, it is lost entirely.
Proposition 90 allows counties to accept transfers of property tax base from one county to another. The requirements are the same as for Propositions 60, except for the requirement that both properties lie within the same county. Instead, both properties must be in counties that have opted in to Proposition 90. At present, these counties are:
- Los Angeles
- San Bernardino
- San Diego
- Santa Clara
- San Mateo
Proposition 110 allows a similar transfer in tax base, with the same requirements on occupancy and value, for the benefit of permanently and severely disabled persons. A permanently and severely disabled person is described as: “any person who has a physical disability or impairment which results in a functional limitation as to employment, or substantially limits one or more major life activities of that person, and which has been diagnosed as permanently affecting the person’s ability to function.”
Someone who has used their Proposition 60/90 benefit in the past who subsequently becomes permanently and severely disabled is eligible to use their benefit under Proposition 110.
To establish eligibility for Proposition 110, the homeowner’s physician must complete and sign form BOE 62 A to certify their eligibility.