Proposition 60 Transferring original tax basis from a former residence to a replacement residence.


What is Propositiion 60?

Prop. 60 was a constitutional amendment approved by the voters of California in 1986. It is codified in Section 69.5 of the Revenue & Taxation Code, and allows the transfer of an existing Proposition 13 base year value from a former residence to a replacement residence, if certain conditions are met. This benefit is open to homeowners who are at least 55 years old and meet the requirements outlined in the conditions below:

Ґ Both the original property (former residence) and its replacement must be located in the same county. If the replacement property is located in a different county from the original, see Proposition 90.
Ґ As of the date of transfer of the original property, the seller or a spouse living with the seller must be at least 55 years old.
Ґ The original property must have been eligible for the Homeowner’s Exemption or entitled to the Disabled Veterans’ Exemption.
Ґ The replacement dwelling must be of equal or lesser value than the original property.
Ґ The replacement dwelling must have been purchased or newly constructed on or after 11/06/86.
Ґ Without exception, the replacement dwelling must be purchased or newly constructed within 2 years (before or after) of the sale of the original property.
Ґ The original property must be subject to reappraisal at its current fair market value as the result of its transfer, in accordance with Sections 110.1 or 5803 of the Revenue and Taxation Code.
Ґ Without exception, a claim for relief must be filed within three years of the date a replacement dwelling is purchased or new construction of a replacement dwelling is completed.

For further information go to http://www.oc.ca.gov/assessor/FAQprop60.asp

BACK TO TAX INFORMATION