How Does the New Property Tax Portability Initiative Effect You?
- Real Estate Tips
- March 20, 2018
In the 1980s, California voters passed Propositions 60 and 90 which provided property tax relief to senior citizens who were selling their existing residence and purchasing/constructing a replacement residence worth the same or less than the existing. This was able to happen by preventing reassessment of the property value, so it was meant to encourage those 55+ to “move down” to a smaller home but continue to pay the same amount of taxes.
Originally, Proposition 60 required the replacement home and the original to be located in the same county, and 90 allowed other counties to opt in if they so wanted to. The tax relief would have to be requested 3 years before the replacement property purchase.
There are many other stipulations, but as of this year, 11 of California’s 58 counties opted in to enable a transfer of property tax as mentioned above. This includes:
- Los Angeles
- Orange
- Riverside
- San Bernadino
- San Diego
- Ventura
- San Mateo
- Santa Clara
- Alameda
- El Dorado
- Tuolumne
In the next year, there is most likely going to be a ballot next year to further expand the portability of property taxes. Thousands of senior homeowners have been increasingly limited by the requirements of 60 and 90, which makes them feel forced to continue living in homes not suitable for them. This has also added to the state’s housing shortage for younger families looking for bigger homes.
The California Association of Realtors will most likely pay for the new initiative. The intention of the broadening/expansion of Prop 60 and 90 will be that all 58 counties would be included, not just the current 11, so seniors would be able to move far more freely and take their current tax base.
Want to learn more? Check out this informative article here.
