Sacramento Real Estate Blog

Today’s Ask the Broker installment is the first part of a series of articles on everybody’s favorite happy real estate topic — real estate taxes.

Recently a buyer contacted me who wanted to move to Roseville, in Placer County.  He had heard that if he moved, he would be able to keep his tax base.  Unfortunately, I had to give him the news that he’d be unable to do so, since he was moving from another county in California.

In order to understand why not, let’s review the three California ballot propositions allow homeowners to transfer their tax base under certain circumstances.

Proposition 60 - Moving Within The County

California voters passed Proposition 60 on November 4, 1986.  It says that if you or your spouse living with you is aged 55 or older, and you are moving to another home in the same county, you are to transfer your existing tax base to a replacement home of equal or lesser value.  This is a one time benefit, so if either you or your spouse have done this before, you can’t do it again.  If you buy the home before selling your existing home, then the value of the replacement home must be 100% or less than the market value of your existing home.  If you buy a replacement home within the first year after selling your replacement home, then the value must be 105% or less than the market value of your existing home.  If you buy the replacement home  within the second year of the selling your home, then the value of the replacement home must be 110% or less than the market value of your first home.

One thing that’s important to note is that the market value is determined by the tax assessor, for both your original home and your replacement home.  It is not the same as the purchase price.

Proposition 90 - Moving Between Counties

Four years after Proposition 60 was passed, California voters went to the polls on November 8, 1988 and passed proposition 90, which allowed owners aged 55 and older to transfer their tax base between counties under certain circumstances.  When my buyer heard he could move his tax base to Placer County, whoever he heard it from no doubt had Proposition 90 in mind, however, here’s the important point about proposition 90:  It must be supported in the county where the replacement property is located.  Where you’re moving from is irrelevant, so long as it’s in California.  Where you’re moving to is what counts.

As of about last week (Early October, 2007), according to the Placer County assessor, the list of counties that support proposition 90 includes  Alameda,  Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura.  That list hasn’t changed in a couple of years, but it’s possible that it can, so you should always contact the Assessor’s office of the county you’re moving to to make sure.  We’re happy to assist you if you’re moving to our local area, but if you just want to check before you move, here are the numbers:

Proposition 110 - Severely Disabled Persons

On June 5, 1990, California voters passed ballot proposition 110 into law, allowing severely disabled persons to transfer their tax base under certain circumstances.  The State Board of Equalization maintains a Proposition 110 FAQ.

For more information about Proposition 60, see Sacramento County’s Proposition 60 Questions and Answers.

When our series on taxes continues, we’ll have more information about Proposition 13, local tax rates, resources for researching the taxes on a given property, Mello Roos, etc.  To receive more information on these subjects and other real estate topics as they become available, please Subscribe to Our Blog.

Do you have a question and want to Ask the Broker? If so, please feel free to call John Lockwood directly at (530) 672-9160, or you can submit your question using our Contact Form.  (Note that the phone number there is optional.  Also, you will not be subscribed if you submit a question).