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Proposition 60 & 90 (CA)
Senior Property Tax


What are Propositions 60 & 90?
They are constituted initiatives passed by California voter. They provide property tax relief by preventing reassessment when a senior citizen sells his/her existing residence and purchases or constructs a replacement residence worth the same or less than the original.

Why Were They Enacted?
They encourage a person, age 55 or older to "move down" to a smaller residence. When a senior citizen acquires a replacement property worth less than the original property, he/she will continue to pay approximately the same amount of annual property taxes as before.

How Do These Propositions Work?
When the senior citizen purchases or constructs a new residence, it is not reassessed, if he/she qualifies. The Assessor transfers the factored base value of the original residence to the replacement residence. Proposition 60 originally required tat the replacement and the original be located in the same county. Later, Proposition 90 enabled this to be modified by the local ordinance.

Counties Involved in Proposition 90
A county's participation in Proposition 90 is not mandatory and is subject to change. Therefore, you should always contact that county for Proposition 90 eligibility before you purchase your replacement property.

The following is a list of the counties currently participating in Proposition 90 as of June 15, 2005:

1. Alameda                 3. Orange               5. San Mateo                 7. Ventura             

2. Los Angeles           4. San Diego         6. Santa Clara

For additional information and forms, visit the Ventura County Assessors Office at: http://assessor.countyofventura.org/forms.html

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Proposition 60 & 90 Requirements (CA)

The Requirements for This Property Tax Exclusion are as Follows:
A: Yes. Only one claimant/occupant (or his/her spouse who was also an occupant) who was a qualified record owner of the original property must be at least 55 years of age.

  • At the date of transfer of the original property, the transferor (seller) must be at least 55 years of age. (If married, only one spouse must be at least 55 years of age, but must reside in the residence; if co-owners, only one co-owner must be at least 55 and must reside in the residence.)
  • The replacement property must be purchased or newly constructed on or after November 5, 1986. The replacement residence must be purchased or newly constructed within 2 years before or after the sale of the original residence.
  • The sale of the original residence must qualify for reassessment as a result of its transfer.
  • The principal claimant must have been (1) receiving, or eligible for, a Homeowner's Exemption or (2) have been receiving a Disabled Veteran's Exemption on the original and replacement residences.
  • The replacement residence must be "equal to or lesser" in market value than the original residence. In general, "equal or lesser" than market value of of a replacement dwelling has been defined as: 100% of market value of original property as of its date of sale if a replacement dwelling is purchased before an original property is sold; 105% of market value of original property as of its date of sale if a replacement dwelling is purchased the same day or within one year after the sale of an original property; 110% of market value of original property as of its date of sale if a replacement dwelling is purchased within two years after the sale of an original property.
  • The claimant and/or claimant's spouse can only be granted relief under this section once. The disclosure of social security numbers by all applicants is required. They are used by the assessor to verify the eligibility of persons claiming this exemption and by the State to prevent multiple claims in different counties. This claim is not open to public inspection.

To Apply
If you feel you meet the qualifications for this exclusion, you must provide evidence and/or declare under penalty of perjury that you are at least 55 years old, and complete the claim form. The claim for relief must be filed within three years of the date a replacement dwelling is purchased or a new construction of the replacement dwelling is completed. To obtain a claim form, call your Local Assessor's Office.

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Senior Property Tax Q & A
Q: Is it true that only one claimant, out of several co-owners of a replacement dwelling, must be at least age 55 as of the date of sale of an original property in order to qualify?
A: Yes. Only one claimant/occupant (or his/her spouse who was also an occupant) who was a qualified record owner of the original property must be at least 55 years of age.

Q: Can a taxpayer apply for and receive the benefit of Proposition 60 numerous times during the course of his/her lifetime?
A: No. Only claimants who have not previously been granted this property benefit are eligible.

Q: If the current full cash value of my replacement dwelling slightly exceeds the "equal or lesser value" test as compared to the full market value of my original property, can I receive partial benefit?
A: No. Unless the replacement dwelling satisfies the "equal or lesser value" test, no benefit is available.

Q: Can two otherwise qualified taxpayers who have recently sold their separately owned original properties combine their claim for Proposition 60 benefit when they buy a single replacement dwelling together?
A: No. They can only receive benefits if one or the other, not both, qualifies by comparing his/her original property to the jointly purchased replacement dwelling.

Q: May I give my original property to my son/daughter and still receive the Proposition 60 benefit when I purchase a replacement property?
A: No.The law provides that an original property must be sold for consideration and subject to reappraisal at full market value at the time of sale. Original property transferred to a child or disposed of by gift or devise does not qualify.

Q: After receiving the notice that my application has been granted, do I still need to pay both installments of the secured tax bill at the higher value?
A: Yes. All of the reduction in value will be refunded in the form of a negative supplemental. Please be aware that the refund may not arrive before the second installment of the secured tax bill is due. No adjustments are made to the secured tax bill to reflect the Proposition 60 exclusion.

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