Q: What is the difference between Proposition 60 and Proposition 90?
A: Proposition 60 relates to transfers within the same county (intra-county). Proposition 90 relates to transfers of base value from one county to another county in California (inter-county).
Q: If I qualify for Proposition 60/90 benefits, do I still need to file for a Homeowner's Exemption on the replacement property?
A: Yes. Homeowner's Exemptions are not granted automatically.
Q: What is the Proposition 60/90 filing deadline?
A: You must file your claim within three years following the purchase or completion of new construction of the replacement home.
Q: My original home is located outside Los Angeles County, but my replacement home is in Los Angeles County. Do I qualify for relief?
A: Yes.
Q: I plan to relocate from Los Angeles County to another county. Do I qualify for relief?
A: You may qualify for relief. As of November 5, 2004, the following counties in Californai have an ordinance enabling Proposition 90:
Alameda Orange San Mateo Ventura Los Angeles San Diego Santa Clara
Since the counties indicated above are subject to change, we recommend contacting the county to which you wish to move to verify Proposition 90 eligibility.
Q: Do all replacement homes qualify?
A: If you meet all other eligibility requirements, relief is granted for a single family residence, condominium, unit in planned development, cooperative housing, community apartment, mobile home subject to local real property tax, and living unit within a larger structure consisting of both residential and non-residential accommodations.
Q: If I made an improvement to my replacement home within two years of purchase, can I get additional tax relief for the new construction?
A: Yes, as long as the total amount of your purchase and the new construction does not exceed the market value of the original property at the time of sale.
Q: What does "equal or lesser value" of a replacement property mean?
A: The meaning of "equal or lesser value" depends on when you purchase the replacement property. In general, equal or lesser means:
100% or less of the market value of the original property if a replacement property were purchased or newly constructed before the sale of the original property, or
105% or less of the market value of the original property if a replacement property were purchased or newly constructed within the first year after the sale of the original property, or
110% or less of the market value of the original property if a replacement property were purchased or newly constructed within the second year after the sale of the original property.
When making the "equal or lesser value" test, it is important to understand that the market value of a property is not necessarily the same as the sale or purchase price.
The Assessor will determine the market value of each property. If the market value of your replacement dwelling exceeds the "equal or lesser value" test, no relief is available.
It is "all or nothing" with no partial benefits granted.
Q: Can I give my original home to my son or daughter and still get Proposition 60/90 benefits when I purchase a replacement property?
A: No. An original property must be sold and subject to reappraisal at full market value.
Q: If an original property has multiple owners, can Proposition 60/90 tax relief be split?
A: No. The co-owners must determine between themselves which one will get the benefit. Only one original owner can claim Proposition 60/90 tax relief.