Proposition 60 allows qualified persons over the age of 55 to transfer the base year values from a former residence to a replacement residence under certain conditions.

For example: you can sell your $400,000 Hollywood Hills home [assessed value $80,000] and move to a new $300,000 home in Redondo Beach; the new Redondo Beach assessed value will be $80,000.

Props 60 and 90 apply if you “trade down” (i.e. the new home costs less than the sales price of the old home). In some cases you may buy for 10% more than the sales price of the old home.

If you buy the New Home first; then sell the Old Home, you must go down in price.

In the first 365 day period after the sale of your Old Home, you may go up 5% in the purchase price of New Home. 

If you buy your New Home more than one year from the sale of your Old Home, but less than two years, you may go up 10%. 

Proposition 90

Proposition 60 requires that both the old and new homes to be within the same county. Proposition 90, adopted in 1988, extends Proposition 60’s benefits to homes in two counties, but only if the county of the replacement property has adopted a county ordinance permitting the local County Assessor to apply the value determined by the County Assessor of the original home.

Proposition 110

Proposition 110 was adopted on June 5, 1990 to extend Proposition 60 to severely disabled persons residing permanently in the property. Also, in existing homes qualified for a homeowner’s exemption, certain construction, modifications, or installations intended to increase accessibility for an owner or an owner’s severely and permanently disabled spouse, are excluded from reappraisal.

Please talk to your tax advisor or accountant for more information.

Last updated on January 24, 2012 by Blake Roberts